02-11 15:02 S.B. 262
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Housing Affordability Modifications
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Lincoln Fillmore
House Sponsor:
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LONG TITLE
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General Description:
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This bill amends provisions related to affordable housing.
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Highlighted Provisions:
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This bill:
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▸ defines terms;
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▸ enacts provisions related to residential overlay for the development of certain types of
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dwellings on certain sized lots;
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▸ directs the Utah Housing Corporation to make rules regarding procedures, qualifications,
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and requirements for private financial institutions that offer certain mortgage loans to
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first-time homebuyers;
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▸ provides that first-time home buyers may use certain mortgage loans for specified
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purposes; and
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▸ makes technical and conforming changes.
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Money Appropriated in this Bill:
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None
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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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10-9a-103, as last amended by Laws of Utah 2024, Chapter 464
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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-103, as last amended by Laws of Utah 2024, Chapter 464
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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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51-12-101, as enacted by Laws of Utah 2024, Chapter 510
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63H-8-501, as last amended by Laws of Utah 2024, Chapter 431
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63H-8-502, as last amended by Laws of Utah 2024, Chapter 431
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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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10-9a-408.1, 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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17-27a-408.1, 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 10-9a-103 is amended to read:
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10-9a-103 . Definitions.
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As used in this chapter:
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(1) "Accessory dwelling unit" means a habitable living unit added to, created within, or
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detached from a primary single-family dwelling and contained on one lot.
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(2) "Adversely affected party" means a person other than a land use applicant who:
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(a) owns real property adjoining the property that is the subject of a land use application
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or land use decision; or
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(b) will suffer a damage different in kind than, or an injury distinct from, that of the
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general community as a result of the land use decision.
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(3) "Affected entity" means a county, municipality, special district, special service district
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under Title 17D, Chapter 1, Special Service District Act, school district, interlocal
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cooperation entity established under Title 11, Chapter 13, Interlocal Cooperation Act,
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specified public utility, property owner, property owners association, or the Department
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of Transportation, if:
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(a) the entity's services or facilities are likely to require expansion or significant
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modification because of an intended use of land;
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(b) the entity has filed with the municipality a copy of the entity's general or long-range
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plan; or
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(c) the entity has filed with the municipality a request for notice during the same
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calendar year and before the municipality provides notice to an affected entity in
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compliance with a requirement imposed under this chapter.
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(4) "Affected owner" means the owner of real property that is:
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(a) a single project;
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(b) the subject of a land use approval that sponsors of a referendum timely challenged in
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accordance with [Subsection 20A-7-601(6)] Section 20A-7-601; and
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(c) determined to be legally referable under Section 20A-7-602.8.
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(5) "Appeal authority" means the person, board, commission, agency, or other body
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designated by ordinance to decide an appeal of a decision of a land use application or a
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variance.
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(6) "Billboard" means a freestanding ground sign located on industrial, commercial, or
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residential property if the sign is designed or intended to direct attention to a business,
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product, or service that is not sold, offered, or existing on the property where the sign is
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located.
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(7)(a) "Charter school" means:
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(i) an operating charter school;
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(ii) a charter school applicant that a charter school authorizer approves in accordance
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with Title 53G, Chapter 5, Part 3, Charter School Authorization; or
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(iii) an entity that is working on behalf of a charter school or approved charter
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applicant to develop or construct a charter school building.
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(b) "Charter school" does not include a therapeutic school.
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(8) "Conditional use" means a land use that, because of the unique characteristics or
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potential impact of the land use on the municipality, surrounding neighbors, or adjacent
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land uses, may not be compatible in some areas or may be compatible only if certain
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conditions are required that mitigate or eliminate the detrimental impacts.
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(9) "Constitutional taking" means a governmental action that results in a taking of private
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property so that compensation to the owner of the property is required by the:
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(a) Fifth or Fourteenth Amendment of the Constitution of the United States; or
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(b) Utah Constitution Article I, Section 22.
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(10) "Culinary water authority" means the department, agency, or public entity with
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responsibility to review and approve the feasibility of the culinary water system and
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sources for the subject property.
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(11) "Development activity" means:
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(a) any construction or expansion of a building, structure, or use that creates additional
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demand and need for public facilities;
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(b) any change in use of a building or structure that creates additional demand and need
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for public facilities; or
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(c) any change in the use of land that creates additional demand and need for public
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facilities.
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(12)(a) "Development agreement" means a written agreement or amendment to a written
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agreement between a municipality and one or more parties that regulates or controls
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the use or development of a specific area of land.
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(b) "Development agreement" does not include an improvement completion assurance.
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(13)(a) "Disability" means a physical or mental impairment that substantially limits one
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or more of a person's major life activities, including a person having a record of such
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an impairment or being regarded as having such an impairment.
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(b) "Disability" does not include current illegal use of, or addiction to, any federally
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controlled substance, as defined in Section 102 of the Controlled Substances Act, 21
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U.S.C. 802.
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(14) "Educational facility":
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(a) means:
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(i) a school district's building at which pupils assemble to receive instruction in a
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program for any combination of grades from preschool through grade 12,
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including kindergarten and a program for children with disabilities;
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(ii) a structure or facility:
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(A) located on the same property as a building described in Subsection (14)(a)(i);
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and
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(B) used in support of the use of that building; and
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(iii) a building to provide office and related space to a school district's administrative
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personnel; and
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(b) does not include:
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(i) land or a structure, including land or a structure for inventory storage, equipment
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storage, food processing or preparing, vehicle storage or maintenance, or similar
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use that is:
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(A) not located on the same property as a building described in Subsection
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(14)(a)(i); and
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(B) used in support of the purposes of a building described in Subsection
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(14)(a)(i); or
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(ii) a therapeutic school.
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(15) "Fire authority" means the department, agency, or public entity with responsibility to
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review and approve the feasibility of fire protection and suppression services for the
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subject property.
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(16) "Flood plain" means land that:
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(a) is within the 100-year flood plain designated by the Federal Emergency Management
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Agency; or
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(b) has not been studied or designated by the Federal Emergency Management Agency
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but presents a likelihood of experiencing chronic flooding or a catastrophic flood
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event because the land has characteristics that are similar to those of a 100-year flood
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plain designated by the Federal Emergency Management Agency.
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(17) "General plan" means a document that a municipality adopts by ordinance that sets
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forth general guidelines for proposed future development of the land within the
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municipality.
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(18) "Geologic hazard" means:
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(a) a surface fault rupture;
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(b) shallow groundwater;
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(c) liquefaction;
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(d) a landslide;
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(e) a debris flow;
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(f) unstable soil;
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(g) a rock fall; or
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(h) any other geologic condition that presents a risk:
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(i) to life;
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(ii) of substantial loss of real property; or
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(iii) of substantial damage to real property.
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(19) "Historic preservation authority" means a person, board, commission, or other body
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designated by a legislative body to:
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(a) recommend land use regulations to preserve local historic districts or areas; and
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(b) administer local historic preservation land use regulations within a local historic
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district or area.
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(20) "Home-based microschool" means the same as that term is defined in Section
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53G-6-201.
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(21) "Hookup fee" means a fee for the installation and inspection of any pipe, line, meter,
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or appurtenance that connects to a municipal water, sewer, storm water, power, or other
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utility system.
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(22) "Identical plans" means building plans submitted to a municipality that:
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(a) are clearly marked as "identical plans";
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(b) are substantially identical to building plans that were previously submitted to and
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reviewed and approved by the municipality; and
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(c) describe a building that:
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(i) is located on land zoned the same as the land on which the building described in
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the previously approved plans is located;
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(ii) is subject to the same geological and meteorological conditions and the same law
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as the building described in the previously approved plans;
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(iii) has a floor plan identical to the building plan previously submitted to and
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reviewed and approved by the municipality; and
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(iv) does not require any additional engineering or analysis.
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(23) "Impact fee" means a payment of money imposed under Title 11, Chapter 36a, Impact
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Fees Act.
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(24) "Improvement completion assurance" means a surety bond, letter of credit, financial
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institution bond, cash, assignment of rights, lien, or other equivalent security required by
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a municipality to guaranty the proper completion of landscaping or an infrastructure
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improvement required as a condition precedent to:
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(a) recording a subdivision plat; or
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(b) development of a commercial, industrial, mixed use, or multifamily project.
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(25) "Improvement warranty" means an applicant's unconditional warranty that the
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applicant's installed and accepted landscaping or infrastructure improvement:
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(a) complies with the municipality's written standards for design, materials, and
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workmanship; and
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(b) will not fail in any material respect, as a result of poor workmanship or materials,
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within the improvement warranty period.
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(26) "Improvement warranty period" means a period:
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(a) no later than one year after a municipality's acceptance of required landscaping; or
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(b) no later than one year after a municipality's acceptance of required infrastructure,
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unless the municipality:
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(i) determines for good cause that a one-year period would be inadequate to protect
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the public health, safety, and welfare; and
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(ii) has substantial evidence, on record:
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(A) of prior poor performance by the applicant; or
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(B) that the area upon which the infrastructure will be constructed contains
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suspect soil and the municipality has not otherwise required the applicant to
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mitigate the suspect soil.
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(27) "Infrastructure improvement" means permanent infrastructure that is essential for the
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public health and safety or that:
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(a) is required for human occupation; and
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(b) an applicant must install:
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(i) in accordance with published installation and inspection specifications for public
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improvements; and
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(ii) whether the improvement is public or private, as a condition of:
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(A) recording a subdivision plat;
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(B) obtaining a building permit; or
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(C) development of a commercial, industrial, mixed use, condominium, or
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multifamily project.
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(28) "Internal lot restriction" means a platted note, platted demarcation, or platted
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designation that:
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(a) runs with the land; and
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(b)(i) creates a restriction that is enclosed within the perimeter of a lot described on
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the plat; or
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(ii) designates a development condition that is enclosed within the perimeter of a lot
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described on the plat.
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(29) "Land use applicant" means a property owner, or the property owner's designee, who
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submits a land use application regarding the property owner's land.
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(30) "Land use application":
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(a) means an application that is:
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(i) required by a municipality; and
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(ii) submitted by a land use applicant to obtain a land use decision; and
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(b) does not mean an application to enact, amend, or repeal a land use regulation.
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(31) "Land use authority" means:
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(a) a person, board, commission, agency, or body, including the local legislative body,
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designated by the local legislative body to act upon a land use application; or
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(b) if the local legislative body has not designated a person, board, commission, agency,
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or body, the local legislative body.
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(32) "Land use decision" means an administrative decision of a land use authority or appeal
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authority regarding:
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(a) a land use permit; or
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(b) a land use application.
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(33) "Land use permit" means a permit issued by a land use authority.
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(34) "Land use regulation":
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(a) means a legislative decision enacted by ordinance, law, code, map, resolution,
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specification, fee, or rule that governs the use or development of land;
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(b) includes the adoption or amendment of a zoning map or the text of the zoning code;
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and
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(c) does not include:
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(i) a land use decision of the legislative body acting as the land use authority, even if
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the decision is expressed in a resolution or ordinance; or
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(ii) a temporary revision to an engineering specification that does not materially:
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(A) increase a land use applicant's cost of development compared to the existing
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specification; or
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(B) impact a land use applicant's use of land.
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(35) "Legislative body" means the municipal council.
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(36) "Local historic district or area" means a geographically definable area that:
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(a) contains any combination of buildings, structures, sites, objects, landscape features,
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archeological sites, or works of art that contribute to the historic preservation goals of
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a legislative body; and
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(b) is subject to land use regulations to preserve the historic significance of the local
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historic district or area.
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(37) "Lot" means a tract of land, regardless of any label, that is created by and shown on a
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subdivision plat that has been recorded in the office of the county recorder.
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(38)(a) "Lot line adjustment" means a relocation of a lot line boundary between
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adjoining lots or between a lot and adjoining parcels in accordance with Section
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10-9a-608:
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(i) whether or not the lots are located in the same subdivision; and
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(ii) with the consent of the owners of record.
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(b) "Lot line adjustment" does not mean a new boundary line that:
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(i) creates an additional lot; or
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(ii) constitutes a subdivision or a subdivision amendment.
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(c) "Lot line adjustment" does not include a boundary line adjustment made by the
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Department of Transportation.
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(39) "Major transit investment corridor" means public transit service that uses or occupies:
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(a) public transit rail right-of-way;
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(b) dedicated road right-of-way for the use of public transit, such as bus rapid transit; or
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(c) fixed-route bus corridors subject to an interlocal agreement or contract between a
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municipality or county and:
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(i) a public transit district as defined in Section 17B-2a-802; or
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(ii) an eligible political subdivision as defined in Section 59-12-2219.
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(40) "Micro-education entity" means the same as that term is defined in Section 53G-6-201.
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(41) "Moderate income housing" means housing occupied or reserved for occupancy by
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households with a gross household income equal to or less than 80% of the median gross
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income for households of the same size in the county in which the city is located.
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(42) "Municipal utility easement" means an easement that:
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(a) is created or depicted on a plat recorded in a county recorder's office and is described
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as a municipal utility easement granted for public use;
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(b) is not a protected utility easement or a public utility easement as defined in Section
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54-3-27;
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(c) the municipality or the municipality's affiliated governmental entity uses and
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occupies to provide a utility service, including sanitary sewer, culinary water,
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electrical, storm water, or communications or data lines;
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(d) is used or occupied with the consent of the municipality in accordance with an
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authorized franchise or other agreement;
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(e)(i) is used or occupied by a specified public utility in accordance with an
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authorized franchise or other agreement; and
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(ii) is located in a utility easement granted for public use; or
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(f) is described in Section 10-9a-529 and is used by a specified public utility.
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(43) "Nominal fee" means a fee that reasonably reimburses a municipality only for time
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spent and expenses incurred in:
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(a) verifying that building plans are identical plans; and
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(b) reviewing and approving those minor aspects of identical plans that differ from the
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previously reviewed and approved building plans.
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(44) "Noncomplying structure" means a structure that:
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(a) legally existed before the structure's current land use designation; and
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(b) because of one or more subsequent land use ordinance changes, does not conform to
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the setback, height restrictions, or other regulations, excluding those regulations,
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which govern the use of land.
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(45) "Nonconforming use" means a use of land that:
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(a) legally existed before [its] the land's current land use designation;
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(b) has been maintained continuously since the time the land use ordinance governing
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the land changed; and
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(c) because of one or more subsequent land use ordinance changes, does not conform to
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the regulations that now govern the use of the land.
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(46) "Official map" means a map drawn by municipal authorities and recorded in a county
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recorder's office that:
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(a) shows actual and proposed rights-of-way, centerline alignments, and setbacks for
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highways and other transportation facilities;
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(b) provides a basis for restricting development in designated rights-of-way or between
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designated setbacks to allow the government authorities time to purchase or
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otherwise reserve the land; and
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(c) has been adopted as an element of the municipality's general plan.
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(47) "Parcel" means any real property that is not a lot.
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(48)(a) "Parcel boundary adjustment" means a recorded agreement between owners of
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adjoining parcels adjusting the mutual boundary, either by deed or by a boundary line
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agreement in accordance with Section 10-9a-524, if no additional parcel is created
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and:
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(i) none of the property identified in the agreement is a lot; or
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(ii) the adjustment is to the boundaries of a single person's parcels.
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(b) "Parcel boundary adjustment" does not mean an adjustment of a parcel boundary line
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that:
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(i) creates an additional parcel; or
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(ii) constitutes a subdivision.
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(c) "Parcel boundary adjustment" does not include a boundary line adjustment made by
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the Department of Transportation.
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(49) "Person" means an individual, corporation, partnership, organization, association, trust,
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governmental agency, or any other legal entity.
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(50) "Plan for moderate income housing" means a written document adopted by a
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municipality's legislative body that includes:
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(a) an estimate of the existing supply of moderate income housing located within the
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municipality;
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(b) an estimate of the need for moderate income housing in the municipality for the next
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five years;
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(c) a survey of total residential land use;
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(d) an evaluation of how existing land uses and zones affect opportunities for moderate
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income housing; and
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(e) a description of the municipality's program to encourage an adequate supply of
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moderate income housing.
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(51) "Plat" means an instrument subdividing property into lots as depicted on a map or
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other graphical representation of lands that a licensed professional land surveyor makes
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and prepares in accordance with Section 10-9a-603 or 57-8-13.
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(52) "Potential geologic hazard area" means an area that:
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(a) is designated by a Utah Geological Survey map, county geologist map, or other
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relevant map or report as needing further study to determine the area's potential for
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geologic hazard; or
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(b) has not been studied by the Utah Geological Survey or a county geologist but
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presents the potential of geologic hazard because the area has characteristics similar
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to those of a designated geologic hazard area.
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(53) "Public agency" means:
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(a) the federal government;
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(b) the state;
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(c) a county, municipality, school district, special district, special service district, or
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other political subdivision of the state; or
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(d) a charter school.
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(54) "Public hearing" means a hearing at which members of the public are provided a
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reasonable opportunity to comment on the subject of the hearing.
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(55) "Public meeting" means a meeting that is required to be open to the public under Title
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52, Chapter 4, Open and Public Meetings Act.
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(56) "Public street" means a public right-of-way, including a public highway, public
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avenue, public boulevard, public parkway, public road, public lane, public alley, public
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viaduct, public subway, public tunnel, public bridge, public byway, other public
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transportation easement, or other public way.
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(57) "Receiving zone" means an area of a municipality that the municipality designates, by
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ordinance, as an area in which an owner of land may receive a transferable development
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right.
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(58) "Record of survey map" means a map of a survey of land prepared in accordance with
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Section 10-9a-603, 17-23-17, 17-27a-603, or 57-8-13.
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(59) "Residential facility for persons with a disability" means a residence:
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(a) in which more than one person with a disability resides; and
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(b) which is licensed or certified by the Department of Health and Human Services
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under:
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(i) Title 26B, Chapter 2, Part 1, Human Services Programs and Facilities; or
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(ii) Title 26B, Chapter 2, Part 2, Health Care Facility Licensing and Inspection.
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(60) "Residential roadway" means a public local residential road that:
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(a) will serve primarily to provide access to adjacent primarily residential areas and
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property;
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(b) is designed to accommodate minimal traffic volumes or vehicular traffic;
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(c) is not identified as a supplementary to a collector or other higher system classified
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street in an approved municipal street or transportation master plan;
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(d) has a posted speed limit of 25 miles per hour or less;
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(e) does not have higher traffic volumes resulting from connecting previously separated
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areas of the municipal road network;
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(f) cannot have a primary access, but can have a secondary access, and does not abut lots
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intended for high volume traffic or community centers, including schools, recreation
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centers, sports complexes, or libraries; and
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(g) primarily serves traffic within a neighborhood or limited residential area and is not
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necessarily continuous through several residential areas.
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(61) "Rules of order and procedure" means a set of rules that govern and prescribe in a
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public meeting:
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(a) parliamentary order and procedure;
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(b) ethical behavior; and
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(c) civil discourse.
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(62) "Sanitary sewer authority" means the department, agency, or public entity with
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responsibility to review and approve the feasibility of sanitary sewer services or onsite
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wastewater systems.
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(63) "Sending zone" means an area of a municipality that the municipality designates, by
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ordinance, as an area from which an owner of land may transfer a transferable
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development right.
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(64) "Special district" means an entity under Title 17B, Limited Purpose Local Government
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Entities - Special Districts, and any other governmental or quasi-governmental entity
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that is not a county, municipality, school district, or the state.
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(65) "Specified public agency" means:
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(a) the state;
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(b) a school district; or
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(c) a charter school.
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(66) "Specified public utility" means an electrical corporation, gas corporation, or telephone
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corporation, as those terms are defined in Section 54-2-1.
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(67) "State" includes any department, division, or agency of the state.
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(68)(a) "Subdivision" means any land that is divided, resubdivided, or proposed to be
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divided into two or more lots or other division of land for the purpose, whether
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immediate or future, for offer, sale, lease, or development either on the installment
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plan or upon any and all other plans, terms, and conditions.
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(b) "Subdivision" includes:
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(i) the division or development of land, whether by deed, metes and bounds
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description, devise and testacy, map, plat, or other recorded instrument, regardless
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of whether the division includes all or a portion of a parcel or lot; and
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(ii) except as provided in Subsection (68)(c), divisions of land for residential and
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nonresidential uses, including land used or to be used for commercial, agricultural,
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and industrial purposes.
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(c) "Subdivision" does not include:
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(i) a bona fide division or partition of agricultural land for the purpose of joining one
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of the resulting separate parcels to a contiguous parcel of unsubdivided
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agricultural land, if neither the resulting combined parcel nor the parcel remaining
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from the division or partition violates an applicable land use ordinance;
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(ii) a boundary line agreement recorded with the county recorder's office between
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owners of adjoining parcels adjusting the mutual boundary in accordance with
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Section 10-9a-524 if no new parcel is created;
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(iii) a recorded document, executed by the owner of record:
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(A) revising the legal descriptions of multiple parcels into one legal description
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encompassing all such parcels; or
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(B) joining a lot to a parcel;
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(iv) a boundary line agreement between owners of adjoining subdivided properties
- 13 - S.B. 262 02-11 15:02
439
adjusting the mutual lot line boundary in accordance with Sections 10-9a-524 and
440
10-9a-608 if:
441
(A) no new dwelling lot or housing unit will result from the adjustment; and
442
(B) the adjustment will not violate any applicable land use ordinance;
443
(v) a bona fide division of land by deed or other instrument if the deed or other
444
instrument states in writing that the division:
445
(A) is in anticipation of future land use approvals on the parcel or parcels;
446
(B) does not confer any land use approvals; and
447
(C) has not been approved by the land use authority;
448
(vi) a parcel boundary adjustment;
449
(vii) a lot line adjustment;
450
(viii) a road, street, or highway dedication plat;
451
(ix) a deed or easement for a road, street, or highway purpose; or
452
(x) any other division of land authorized by law.
453
(69)(a) "Subdivision amendment" means an amendment to a recorded subdivision in
454
accordance with Section 10-9a-608 that:
455
(i) vacates all or a portion of the subdivision;
456
(ii) alters the outside boundary of the subdivision;
457
(iii) changes the number of lots within the subdivision;
458
(iv) alters a public right-of-way, a public easement, or public infrastructure within the
459
subdivision; or
460
(v) alters a common area or other common amenity within the subdivision.
461
(b) "Subdivision amendment" does not include a lot line adjustment, between a single lot
462
and an adjoining lot or parcel, that alters the outside boundary of the subdivision.
463
(70) "Substantial evidence" means evidence that:
464
(a) is beyond a scintilla; and
465
(b) a reasonable mind would accept as adequate to support a conclusion.
466
(71) "Suspect soil" means soil that has:
467
(a) a high susceptibility for volumetric change, typically clay rich, having more than a
468
3% swell potential;
469
(b) bedrock units with high shrink or swell susceptibility; or
470
(c) gypsiferous silt and clay, gypsum, or bedrock units containing abundant gypsum
471
commonly associated with dissolution and collapse features.
472
(72) "Therapeutic school" means a residential group living facility:
- 14 - 02-11 15:02 S.B. 262
473
(a) for four or more individuals who are not related to:
474
(i) the owner of the facility; or
475
(ii) the primary service provider of the facility;
476
(b) that serves students who have a history of failing to function:
477
(i) at home;
478
(ii) in a public school; or
479
(iii) in a nonresidential private school; and
480
(c) that offers:
481
(i) room and board; and
482
(ii) an academic education integrated with:
483
(A) specialized structure and supervision; or
484
(B) services or treatment related to a disability, an emotional development, a
485
behavioral development, a familial development, or a social development.
486
(73) "Transferable development right" means a right to develop and use land that originates
487
by an ordinance that authorizes a land owner in a designated sending zone to transfer
488
land use rights from a designated sending zone to a designated receiving zone.
489
(74) "Unincorporated" means the area outside of the incorporated area of a city or town.
490
(75) "Water interest" means any right to the beneficial use of water, including:
491
(a) each of the rights listed in Section 73-1-11; and
492
(b) an ownership interest in the right to the beneficial use of water represented by:
493
(i) a contract; or
494
(ii) a share in a water company, as defined in Section 73-3-3.5.
495
(76) "Zoning map" means a map, adopted as part of a land use ordinance, that depicts land
496
use zones, overlays, or districts.
497
Section 2. Section 10-9a-403 is amended to read:
498
10-9a-403 . General plan preparation.
499
(1)(a) The planning commission shall provide notice, as provided in Section 10-9a-203,
500
of the planning commission's intent to make a recommendation to the municipal
501
legislative body for a general plan or a comprehensive general plan amendment when
502
the planning commission initiates the process of preparing the planning commission's
503
recommendation.
504
(b) The planning commission shall make and recommend to the legislative body a
505
proposed general plan for the area within the municipality.
506
(c) The plan may include areas outside the boundaries of the municipality if, in the
- 15 - S.B. 262 02-11 15:02
507
planning commission's judgment, those areas are related to the planning of the
508
municipality's territory.
509
(d) Except as otherwise provided by law or with respect to a municipality's power of
510
eminent domain, when the plan of a municipality involves territory outside the
511
boundaries of the municipality, the municipality may not take action affecting that
512
territory without the concurrence of the county or other municipalities affected.
513
(2)(a) At a minimum, the proposed general plan, with the accompanying maps, charts,
514
and descriptive and explanatory matter, shall include the planning commission's
515
recommendations for the following plan elements:
516
(i) a land use element that:
517
(A) designates the long-term goals and the proposed extent, general distribution,
518
and location of land for housing for residents of various income levels,
519
business, industry, agriculture, recreation, education, public buildings and
520
grounds, open space, and other categories of public and private uses of land as
521
appropriate;
522
(B) includes a statement of the projections for and standards of population density
523
and building intensity recommended for the various land use categories
524
covered by the plan;
525
(C) except for a city of the fifth class or a town, is coordinated to integrate the
526
land use element with the water use and preservation element; and
527
(D) except for a city of the fifth class or a town, accounts for the effect of land use
528
categories and land uses on water demand;
529
(ii) a transportation and traffic circulation element that:
530
(A) provides the general location and extent of existing and proposed freeways,
531
arterial and collector streets, public transit, active transportation facilities, and
532
other modes of transportation that the planning commission considers
533
appropriate;
534
(B) for a municipality that has access to a major transit investment corridor,
535
addresses the municipality's plan for residential and commercial development
536
around major transit investment corridors to maintain and improve the
537
connections between housing, employment, education, recreation, and
538
commerce;
539
(C) for a municipality that does not have access to a major transit investment
540
corridor, addresses the municipality's plan for residential and commercial
- 16 - 02-11 15:02 S.B. 262
541
development in areas that will maintain and improve the connections between
542
housing, transportation, employment, education, recreation, and commerce; and
543
(D) correlates with the population projections, the employment projections, and
544
the proposed land use element of the general plan;
545
(iii) a moderate income housing element that:
546
(A) provides a realistic opportunity to meet the need for additional moderate
547
income housing within the municipality during the next five years;
548
(B) for a town, may include a recommendation to implement three or more of the
549
moderate income housing strategies described in Subsection (2)(b)(iii);
550
(C) for a specified municipality, as defined in Section 10-9a-408, that does not
551
have a fixed guideway public transit station, shall include a recommendation to
552
implement three or more of the moderate income housing strategies described
553
in Subsection (2)(b)(iii);
554
(D) for a specified municipality, as defined in Section 10-9a-408, that has a fixed
555
guideway public transit station, shall include a recommendation to implement
556
five or more of the moderate income housing strategies described in Subsection
557
(2)(b)(iii), of which one shall be the moderate income housing strategy
558
described in Subsection (2)(b)(iii)(W), and one shall be a moderate income
559
housing strategy described in Subsection (2)(b)(iii)(G), (H), or (Q); and
560
(E) for a specified municipality, as defined in Section 10-9a-408, shall include an
561
implementation plan as provided in Subsection (2)(c); and
562
(iv) except for a city of the fifth class or a town, a water use and preservation element
563
that addresses:
564
(A) the effect of permitted development or patterns of development on water
565
demand and water infrastructure;
566
(B) methods of reducing water demand and per capita consumption for future
567
development;
568
(C) methods of reducing water demand and per capita consumption for existing
569
development; and
570
(D) opportunities for the municipality to modify the municipality's operations to
571
eliminate practices or conditions that waste water.
572
(b) In drafting the moderate income housing element, the planning commission:
573
(i) shall consider the Legislature's determination that municipalities shall facilitate a
574
reasonable opportunity for a variety of housing, including moderate income
- 17 - S.B. 262 02-11 15:02
575
housing:
576
(A) to meet the needs of people of various income levels living, working, or
577
desiring to live or work in the community; and
578
(B) to allow people with various incomes to benefit from and fully participate in
579
all aspects of neighborhood and community life;
580
(ii) for a town, may include, and for a specified municipality as defined in Section
581
10-9a-408, shall include, an analysis of how the municipality will provide a
582
realistic opportunity for the development of moderate income housing within the
583
next five years;
584
(iii) for a town, may include, and for a specified municipality as defined in Section
585
10-9a-408, shall include a recommendation to implement the required number of
586
any of the following moderate income housing strategies as specified in
587
Subsection (2)(a)(iii):
588
(A) rezone for densities necessary to facilitate the production of moderate income
589
housing, including by implementing a density overlay as described in Section
590
10-9a-403.2;
591
(B) demonstrate investment in the rehabilitation or expansion of infrastructure that
592
facilitates the construction of moderate income housing;
593
(C) demonstrate investment in the rehabilitation of existing uninhabitable housing
594
stock into moderate income housing;
595
(D) identify and utilize general fund subsidies or other sources of revenue to
596
waive construction related fees that are otherwise generally imposed by the
597
municipality for the construction or rehabilitation of moderate income housing;
598
(E) create or allow for, and reduce regulations related to, internal or detached
599
accessory dwelling units in residential zones;
600
(F) zone or rezone for higher density or moderate income residential development
601
in commercial or mixed-use zones near major transit investment corridors,
602
commercial centers, or employment centers;
603
(G) amend land use regulations to allow for higher density or new moderate
604
income residential development in commercial or mixed-use zones near major
605
transit investment corridors;
606
(H) amend land use regulations to eliminate or reduce parking requirements for
607
residential development where a resident is less likely to rely on the resident's
608
own vehicle, such as residential development near major transit investment
- 18 - 02-11 15:02 S.B. 262
609
corridors or senior living facilities;
610
(I) amend land use regulations to allow for single room occupancy developments;
611
(J) implement zoning incentives for moderate income units in new developments;
612
(K) preserve existing and new moderate income housing and subsidized units by
613
utilizing a landlord incentive program, providing for deed restricted units
614
through a grant program, or, notwithstanding Section 10-9a-535, establishing a
615
housing loss mitigation fund;
616
(L) reduce, waive, or eliminate impact fees related to moderate income housing;
617
(M) demonstrate creation of, or participation in, a community land trust program
618
for moderate income housing;
619
(N) implement a mortgage assistance program for employees of the municipality,
620
an employer that provides contracted services to the municipality, or any other
621
public employer that operates within the municipality;
622
(O) apply for or partner with an entity that applies for state or federal funds or tax
623
incentives to promote the construction of moderate income housing, an entity
624
that applies for programs offered by the Utah Housing Corporation within that
625
agency's funding capacity, an entity that applies for affordable housing
626
programs administered by the Department of Workforce Services, an entity
627
that applies for affordable housing programs administered by an association of
628
governments established by an interlocal agreement under Title 11, Chapter 13,
629
Interlocal Cooperation Act, an entity that applies for services provided by a
630
public housing authority to preserve and create moderate income housing, or
631
any other entity that applies for programs or services that promote the
632
construction or preservation of moderate income housing;
633
(P) demonstrate utilization of a moderate income housing set aside from a
634
community reinvestment agency, redevelopment agency, or community
635
development and renewal agency to create or subsidize moderate income
636
housing;
637
(Q) create a housing and transit reinvestment zone pursuant to Title 63N, Chapter
638
3, Part 6, Housing and Transit Reinvestment Zone Act;
639
(R) create a home ownership promotion zone pursuant to Part 10, Home
640
Ownership Promotion Zone for Municipalities;
641
(S) eliminate impact fees for any accessory dwelling unit that is not an internal
642
accessory dwelling unit as defined in Section 10-9a-530;
- 19 - S.B. 262 02-11 15:02
643
(T) create a program to transfer development rights for moderate income housing;
644
(U) ratify a joint acquisition agreement with another local political subdivision for
645
the purpose of combining resources to acquire property for moderate income
646
housing;
647
(V) develop a moderate income housing project for residents who are disabled or
648
55 years old or older;
649
(W) develop and adopt a station area plan in accordance with Section 10-9a-403.1;
650
(X) create or allow for, and reduce regulations related to, multifamily residential
651
dwellings compatible in scale and form with detached single-family residential
652
dwellings and located in walkable communities within residential or mixed-use
653
zones;
654
(Y) create a first home investment zone in accordance with Title 63N, Chapter 3,
655
Part 16, First Home Investment Zone Act; and
656
(Z) demonstrate implementation of any other program or strategy to address the
657
housing needs of residents of the municipality who earn less than 80% of the
658
area median income, including the dedication of a local funding source to
659
moderate income housing or the adoption of a land use ordinance that requires
660
10% or more of new residential development in a residential zone be dedicated
661
to moderate income housing; and
662
(iv) shall identify each moderate income housing strategy recommended to the
663
legislative body for implementation by restating the exact language used to
664
describe the strategy in Subsection (2)(b)(iii).
665
(c)(i) In drafting the implementation plan portion of the moderate income housing
666
element as described in Subsection (2)(a)(iii)(C), the planning commission shall
667
recommend to the legislative body the establishment of a five-year timeline for
668
implementing each of the moderate income housing strategies selected by the
669
municipality for implementation.
670
(ii) The timeline described in Subsection (2)(c)(i) shall:
671
(A) identify specific measures and benchmarks for implementing each moderate
672
income housing strategy selected by the municipality, whether one-time or
673
ongoing; and
674
(B) provide flexibility for the municipality to make adjustments as needed.
675
(d) In drafting the land use element, the planning commission shall:
676
(i) identify and consider each agriculture protection area within the municipality;
- 20 - 02-11 15:02 S.B. 262
677
(ii) avoid proposing a use of land within an agriculture protection area that is
678
inconsistent with or detrimental to the use of the land for agriculture; and
679
(iii) consider and coordinate with any station area plans adopted by the municipality
680
if required under Section 10-9a-403.1.
681
(e) In drafting the transportation and traffic circulation element, the planning
682
commission shall:
683
(i)(A) consider and coordinate with the regional transportation plan developed by
684
the municipality's region's metropolitan planning organization, if the
685
municipality is within the boundaries of a metropolitan planning organization;
686
or
687
(B) consider and coordinate with the long-range transportation plan developed by
688
the Department of Transportation, if the municipality is not within the
689
boundaries of a metropolitan planning organization; and
690
(ii) consider and coordinate with any station area plans adopted by the municipality if
691
required under Section 10-9a-403.1.
692
(f) In drafting the water use and preservation element, the planning commission:
693
(i) shall consider:
694
(A) applicable regional water conservation goals recommended by the Division of
695
Water Resources; and
696
(B) if Section 73-10-32 requires the municipality to adopt a water conservation
697
plan pursuant to Section 73-10-32, the municipality's water conservation plan;
698
(ii) shall include a recommendation for:
699
(A) water conservation policies to be determined by the municipality; and
700
(B) landscaping options within a public street for current and future development
701
that do not require the use of lawn or turf in a parkstrip;
702
(iii) shall review the municipality's land use ordinances and include a
703
recommendation for changes to an ordinance that promotes the inefficient use of
704
water;
705
(iv) shall consider principles of sustainable landscaping, including the:
706
(A) reduction or limitation of the use of lawn or turf;
707
(B) promotion of site-specific landscape design that decreases stormwater runoff
708
or runoff of water used for irrigation;
709
(C) preservation and use of healthy trees that have a reasonable water requirement
710
or are resistant to dry soil conditions;
- 21 - S.B. 262 02-11 15:02
711
(D) elimination or regulation of ponds, pools, and other features that promote
712
unnecessary water evaporation;
713
(E) reduction of yard waste; and
714
(F) use of an irrigation system, including drip irrigation, best adapted to provide
715
the optimal amount of water to the plants being irrigated;
716
(v) shall consult with the public water system or systems serving the municipality
717
with drinking water regarding how implementation of the land use element and
718
water use and preservation element may affect:
719
(A) water supply planning, including drinking water source and storage capacity
720
consistent with Section 19-4-114; and
721
(B) water distribution planning, including master plans, infrastructure asset
722
management programs and plans, infrastructure replacement plans, and impact
723
fee facilities plans;
724
(vi) shall consult with the Division of Water Resources for information and technical
725
resources regarding regional water conservation goals, including how
726
implementation of the land use element and the water use and preservation
727
element may affect the Great Salt Lake;
728
(vii) may include recommendations for additional water demand reduction strategies,
729
including:
730
(A) creating a water budget associated with a particular type of development;
731
(B) adopting new or modified lot size, configuration, and landscaping standards
732
that will reduce water demand for new single family development;
733
(C) providing one or more water reduction incentives for existing development
734
such as modification of existing landscapes and irrigation systems and
735
installation of water fixtures or systems that minimize water demand;
736
(D) discouraging incentives for economic development activities that do not
737
adequately account for water use or do not include strategies for reducing
738
water demand; and
739
(E) adopting water concurrency standards requiring that adequate water supplies
740
and facilities are or will be in place for new development; and
741
(viii) for a town, may include, and for another municipality, shall include, a
742
recommendation for low water use landscaping standards for a new:
743
(A) commercial, industrial, or institutional development;
744
(B) common interest community, as defined in Section 57-25-102; or
- 22 - 02-11 15:02 S.B. 262
745
(C) multifamily housing project.
746
(3) The proposed general plan may include:
747
(a) an environmental element that addresses:
748
(i) the protection, conservation, development, and use of natural resources, including
749
the quality of:
750
(A) air;
751
(B) forests;
752
(C) soils;
753
(D) rivers;
754
(E) groundwater and other waters;
755
(F) harbors;
756
(G) fisheries;
757
(H) wildlife;
758
(I) minerals; and
759
(J) other natural resources; and
760
(ii)(A) the reclamation of land, flood control, prevention and control of the
761
pollution of streams and other waters;
762
(B) the regulation of the use of land on hillsides, stream channels and other
763
environmentally sensitive areas;
764
(C) the prevention, control, and correction of the erosion of soils;
765
(D) the preservation and enhancement of watersheds and wetlands; and
766
(E) the mapping of known geologic hazards;
767
(b) a public services and facilities element showing general plans for sewage, water,
768
waste disposal, drainage, public utilities, rights-of-way, easements, and facilities for
769
them, police and fire protection, and other public services;
770
(c) a rehabilitation, redevelopment, and conservation element consisting of plans and
771
programs for:
772
(i) historic preservation;
773
(ii) the diminution or elimination of a development impediment as defined in Section
774
17C-1-102; and
775
(iii) redevelopment of land, including housing sites, business and industrial sites, and
776
public building sites;
777
(d) an economic element composed of appropriate studies and forecasts, as well as an
778
economic development plan, which may include review of existing and projected
- 23 - S.B. 262 02-11 15:02
779
municipal revenue and expenditures, revenue sources, identification of basic and
780
secondary industry, primary and secondary market areas, employment, and retail
781
sales activity;
782
(e) recommendations for implementing all or any portion of the general plan, including
783
the adoption of land and water use ordinances, capital improvement plans,
784
community development and promotion, and any other appropriate action;
785
(f) provisions addressing any of the matters listed in Subsection 10-9a-401(2) or (3); and
786
(g) any other element the municipality considers appropriate.
787
Section 3. Section 10-9a-403.2 is enacted to read:
788
10-9a-403.2 . Residential density overlay.
789
(1)(a) "Density overlay" means zoning regulations applied by a municipality to a
790
housing-eligible zone that allows:
791
(i) the development of:
792
(A) singleifamily dwellings on small lots;
793
(B) diverse housing options; or
794
(C) a combination of single-family dwellings on small lots and diverse housing
795
options; and
796
(ii)(A) a minimum of eight housing units per acre, if the housing units are served
797
by sewer lines; or
798
(B) the maximum per-acre density permissible for health and safety, as
799
determined by the local building code authority and local health department, if
800
the housing units are served by septic tank.
801
(b) "Diverse housing options" means one or more of the following types of residential
802
units:
803
(i) two-family dwellings;
804
(ii) three- and four-family dwellings of up to two levels;
805
(iii) town homes; or
806
(iv) live-work units, as described by the International Building Code, in which one or
807
more residential housing units are available above a commercial property.
808
(c) "Housing eligible zone" means an area of a municipality zoned in a way that allows
809
for the development of a residential unit, including residential zones and mixed-use
810
zones.
811
(d) "Owner-occupier" means an individual who owns, solely or jointly, a housing unit in
812
which the individual lives as the individual's primary residence.
- 24 - 02-11 15:02 S.B. 262
813
(e) "Small lot" means a residential lot that is 5,400 square feet or smaller.
814
(2) A municipality may implement a density overlay allowing for increased development
815
within housing-eligible zones of the municipality.
816
(3) If a legislative body adopts a density overlay in a housing-eligible zone, the
817
municipality may adopt additional requirements to ensure:
818
(a) that some or all of the residential units offered for sale in the area subject to the
819
density overlay be deed-restricted for up to five years to ensure owner-occupancy; or
820
(b) that some or all of the residential units in the area subject to the density overlay be:
821
(i) offered for sale to an owner-occupier at a purchase price affordable to a household
822
with a gross income of no more than 120% of area median income for the county
823
in which the residential unit is offered for sale; or
824
(ii) offered for rent at a rental price affordable to a household with a gross income of
825
no more than 80% of area median income for the county in which the residential
826
unit is offered for rent.
827
(4) Notwithstanding Section 10-9a-534, a municipality that adopts a density overlay as
828
described in this section may also adopt a building design element to promote the
829
development of diverse housing options within the density overlay.
830
Section 4. Section 10-9a-403.3 is enacted to read:
831
10-9a-403.3 . Residential density bonus.
832
(1) As used in this section:
833
(a) "Density bonus-eligible area" means a place in a municipality:
834
(i) zoned for a minimum of six housing units per acre; or
835
(ii) subject to a development agreement that provides at least 6 units to the acre.
836
(b) "Owner-occupier" means the same as that term is defined in Section 10-9a-403.2.
837
(2)(a) In a density bonus-eligible area, a municipality may approve an applicant's request
838
for an additional 0.5 housing units per acre in exchange for one or more of the
839
following:
840
(i) requiring at least one housing unit per acre being offered for sale to an
841
owner-occupier at a price point 80% or less of the median county home price for
842
housing of that type;
843
(ii) requiring at least one housing unit per acre being deed-restricted to
844
owner-occupancy for at least five years;
845
(iii) requiring at least one housing unit per acre to be deed-restricted for occupancy
846
by at least one individual employed within the geographic region of the
- 25 - S.B. 262 02-11 15:02
847
municipality or a five mile radius of the boundary of the municipality; or
848
(iv) requiring at least two housing units per acre to be no larger than 1,600 square
849
feet.
850
(b) Notwithstanding Section 10-9a-534, in a density bonus-eligible area, a municipality
851
may implement a building design element if the building design element is designed
852
to promote density greater than six housing units per acre.
853
Section 5. Section 10-9a-408 is amended to read:
854
10-9a-408 . Moderate income housing report -- Contents -- Prioritization for
855
funds or projects -- Ineligibility for funds after noncompliance -- Civil actions.
856
(1) As used in this section:
857
(a) "Division" means the Housing and Community Development Division within the
858
Department of Workforce Services.
859
(b) "Implementation plan" means the implementation plan adopted as part of the
860
moderate income housing element of a specified municipality's general plan as
861
provided in Subsection 10-9a-403(2)(c).
862
(c) "Initial report" or "initial moderate income housing report" means the one-time report
863
described in Subsection (2).
864
(d) "Moderate income housing strategy" means a strategy described in Subsection
865
10-9a-403(2)(b)(iii).
866
(e) "Report" means an initial report or a subsequent progress report.
867
(f) "Specified municipality" means:
868
(i) a city of the first, second, third, or fourth class; or
869
(ii) a city of the fifth class with a population of 5,000 or more, if the city is located
870
within a county of the first, second, or third class.
871
(g) "Subsequent progress report" means the annual report described in Subsection (3).
872
(2)(a) The legislative body of a specified municipality shall submit an initial report to
873
the division.
874
(b)(i) This Subsection (2)(b) applies to a municipality that is not a specified
875
municipality as of January 1, 2023.
876
(ii) As of January 1, if a municipality described in Subsection (2)(b)(i) changes from
877
one class to another or grows in population to qualify as a specified municipality,
878
the municipality shall submit an initial plan to the division on or before August 1
879
of the first calendar year beginning on January 1 in which the municipality
880
qualifies as a specified municipality.
- 26 - 02-11 15:02 S.B. 262
881
(c) The initial report shall:
882
(i) identify each moderate income housing strategy selected by the specified
883
municipality for continued, ongoing, or one-time implementation, restating the
884
exact language used to describe the moderate income housing strategy in
885
Subsection 10-9a-403(2)(b)(iii); and
886
(ii) include an implementation plan.
887
(3)(a) After the division approves a specified municipality's initial report under this
888
section, the specified municipality shall, as an administrative act, annually submit to
889
the division a subsequent progress report on or before August 1 of each year after the
890
year in which the specified municipality is required to submit the initial report.
891
(b) The subsequent progress report shall include:
892
(i) subject to Subsection (3)(c), a description of each action, whether one-time or
893
ongoing, taken by the specified municipality during the previous 12-month period
894
to implement the moderate income housing strategies identified in the initial
895
report for implementation;
896
(ii) a description of each land use regulation or land use decision made by the
897
specified municipality during the previous 12-month period to implement the
898
moderate income housing strategies, including an explanation of how the land use
899
regulation or land use decision supports the specified municipality's efforts to
900
implement the moderate income housing strategies;
901
(iii) a description of any barriers encountered by the specified municipality in the
902
previous 12-month period in implementing the moderate income housing
903
strategies;
904
(iv) information regarding the number of internal and external or detached accessory
905
dwelling units located within the specified municipality for which the specified
906
municipality:
907
(A) issued a building permit to construct; or
908
(B) issued a business license or comparable license or permit to rent;
909
(v) the number of residential dwelling units that have been entitled that have not
910
received a building permit as of the submission date of the progress report;
911
(vi) shapefiles, or website links if shapefiles are not available, to current maps and
912
tables related to zoning;
913
(vii) a description of how the market has responded to the selected moderate income
914
housing strategies, including the number of entitled moderate income housing
- 27 - S.B. 262 02-11 15:02
915
units or other relevant data; [and]
916
(viii) beginning January 1, 2027, the information described in Section 10-9a-408.1;
917
and
918
[(viii)] (ix) any recommendations on how the state can support the specified
919
municipality in implementing the moderate income housing strategies.
920
(c) For purposes of describing actions taken by a specified municipality under
921
Subsection (3)(b)(i), the specified municipality may include an ongoing action taken
922
by the specified municipality prior to the 12-month reporting period applicable to the
923
subsequent progress report if the specified municipality:
924
(i) has already adopted an ordinance, approved a land use application, made an
925
investment, or approved an agreement or financing that substantially promotes the
926
implementation of a moderate income housing strategy identified in the initial
927
report; and
928
(ii) demonstrates in the subsequent progress report that the action taken under
929
Subsection (3)(c)(i) is relevant to making meaningful progress towards the
930
specified municipality's implementation plan.
931
(d) A specified municipality's report shall be in a form:
932
(i) approved by the division; and
933
(ii) made available by the division on or before May 1 of the year in which the report
934
is required.
935
(4) Within 90 days after the day on which the division receives a specified municipality's
936
report, the division shall:
937
(a) post the report on the division's website;
938
(b) send a copy of the report to the Department of Transportation, the Governor's Office
939
of Planning and Budget, the association of governments in which the specified
940
municipality is located, and, if the specified municipality is located within the
941
boundaries of a metropolitan planning organization, the appropriate metropolitan
942
planning organization; and
943
(c) subject to Subsection (5), review the report to determine compliance with this section.
944
(5)(a) An initial report does not comply with this section unless the report:
945
(i) includes the information required under Subsection (2)(c);
946
(ii) demonstrates to the division that the specified municipality made plans to
947
implement:
948
(A) three or more moderate income housing strategies if the specified
- 28 - 02-11 15:02 S.B. 262
949
municipality does not have a fixed guideway public transit station; or
950
(B) subject to Subsection 10-9a-403(2)(b)(iv), five or more moderate income
951
housing strategies if the specified municipality has a fixed guideway public
952
transit station; and
953
(iii) is in a form approved by the division.
954
(b) A subsequent progress report does not comply with this section unless the report:
955
(i) demonstrates to the division that the specified municipality made plans to
956
implement:
957
(A) three or more moderate income housing strategies if the specified
958
municipality does not have a fixed guideway public transit station; or
959
(B) subject to the requirements of Subsection 10-9a-403(2)(a)(iii)(D), five or more
960
moderate income housing strategies if the specified municipality has a fixed
961
guideway public transit station;
962
(ii) is in a form approved by the division; and
963
(iii) provides sufficient information for the division to:
964
(A) assess the specified municipality's progress in implementing the moderate
965
income housing strategies;
966
(B) monitor compliance with the specified municipality's implementation plan;
967
(C) identify a clear correlation between the specified municipality's land use
968
regulations and land use decisions and the specified municipality's efforts to
969
implement the moderate income housing strategies;
970
(D) identify how the market has responded to the specified municipality's selected
971
moderate income housing strategies; and
972
(E) identify any barriers encountered by the specified municipality in
973
implementing the selected moderate income housing strategies.
974
(6)(a) A specified municipality qualifies for priority consideration under this Subsection
975
(6) if the specified municipality's report:
976
(i) complies with this section; and
977
(ii) demonstrates to the division that the specified municipality made plans to
978
implement:
979
(A) five or more moderate income housing strategies if the specified municipality
980
does not have a fixed guideway public transit station; or
981
(B) six or more moderate income housing strategies if the specified municipality
982
has a fixed guideway public transit station.
- 29 - S.B. 262 02-11 15:02
983
(b) The Transportation Commission may, in accordance with Subsection 72-1-304(3)(c),
984
give priority consideration to transportation projects located within the boundaries of
985
a specified municipality described in Subsection (6)(a) until the Department of
986
Transportation receives notice from the division under Subsection (6)(e).
987
(c) Upon determining that a specified municipality qualifies for priority consideration
988
under this Subsection (6), the division shall send a notice of prioritization to the
989
legislative body of the specified municipality and the Department of Transportation.
990
(d) The notice described in Subsection (6)(c) shall:
991
(i) name the specified municipality that qualifies for priority consideration;
992
(ii) describe the funds or projects for which the specified municipality qualifies to
993
receive priority consideration; and
994
(iii) state the basis for the division's determination that the specified municipality
995
qualifies for priority consideration.
996
(e) The division shall notify the legislative body of a specified municipality and the
997
Department of Transportation in writing if the division determines that the specified
998
municipality no longer qualifies for priority consideration under this Subsection (6).
999
(7)(a) If the division, after reviewing a specified municipality's report, determines that
1000
the report does not comply with this section, the division shall send a notice of
1001
noncompliance to the legislative body of the specified municipality.
1002
(b) A specified municipality that receives a notice of noncompliance may:
1003
(i) cure each deficiency in the report within 90 days after the day on which the notice
1004
of noncompliance is sent; or
1005
(ii) request an appeal of the division's determination of noncompliance within 10
1006
days after the day on which the notice of noncompliance is sent.
1007
(c) The notice described in Subsection (7)(a) shall:
1008
(i) describe each deficiency in the report and the actions needed to cure each
1009
deficiency;
1010
(ii) state that the specified municipality has an opportunity to:
1011
(A) submit to the division a corrected report that cures each deficiency in the
1012
report within 90 days after the day on which the notice of compliance is sent; or
1013
(B) submit to the division a request for an appeal of the division's determination of
1014
noncompliance within 10 days after the day on which the notice of
1015
noncompliance is sent; and
1016
(iii) state that failure to take action under Subsection (7)(c)(ii) will result in the
- 30 - 02-11 15:02 S.B. 262
1017
specified municipality's ineligibility for funds under Subsection (9).
1018
(d) For purposes of curing the deficiencies in a report under this Subsection (7), if the
1019
action needed to cure the deficiency as described by the division requires the
1020
specified municipality to make a legislative change, the specified municipality may
1021
cure the deficiency by making that legislative change within the 90-day cure period.
1022
(e)(i) If a specified municipality submits to the division a corrected report in
1023
accordance with Subsection (7)(b)(i) and the division determines that the
1024
corrected report does not comply with this section, the division shall send a
1025
second notice of noncompliance to the legislative body of the specified
1026
municipality within 30 days after the day on which the corrected report is
1027
submitted.
1028
(ii) A specified municipality that receives a second notice of noncompliance may
1029
submit to the division a request for an appeal of the division's determination of
1030
noncompliance within 10 days after the day on which the second notice of
1031
noncompliance is sent.
1032
(iii) The notice described in Subsection (7)(e)(i) shall:
1033
(A) state that the specified municipality has an opportunity to submit to the
1034
division a request for an appeal of the division's determination of
1035
noncompliance within 10 days after the day on which the second notice of
1036
noncompliance is sent; and
1037
(B) state that failure to take action under Subsection (7)(e)(iii)(A) will result in the
1038
specified municipality's ineligibility for funds under Subsection (9).
1039
(8)(a) A specified municipality that receives a notice of noncompliance under
1040
Subsection (7)(a) or (7)(e)(i) may request an appeal of the division's determination of
1041
noncompliance within 10 days after the day on which the notice of noncompliance is
1042
sent.
1043
(b) Within 90 days after the day on which the division receives a request for an appeal,
1044
an appeal board consisting of the following three members shall review and issue a
1045
written decision on the appeal:
1046
(i) one individual appointed by the Utah League of Cities and Towns;
1047
(ii) one individual appointed by the Utah Homebuilders Association; and
1048
(iii) one individual appointed by the presiding member of the association of
1049
governments, established pursuant to an interlocal agreement under Title 11,
1050
Chapter 13, Interlocal Cooperation Act, of which the specified municipality is a
- 31 - S.B. 262 02-11 15:02
1051
member.
1052
(c) The written decision of the appeal board shall either uphold or reverse the division's
1053
determination of noncompliance.
1054
(d) The appeal board's written decision on the appeal is final.
1055
(9)(a) A specified municipality is ineligible for funds under this Subsection (9) if:
1056
(i) the specified municipality fails to submit a report to the division;
1057
(ii) after submitting a report to the division, the division determines that the report
1058
does not comply with this section and the specified municipality fails to:
1059
(A) cure each deficiency in the report within 90 days after the day on which the
1060
notice of noncompliance is sent; or
1061
(B) request an appeal of the division's determination of noncompliance within 10
1062
days after the day on which the notice of noncompliance is sent;
1063
(iii) after submitting to the division a corrected report to cure the deficiencies in a
1064
previously submitted report, the division determines that the corrected report does
1065
not comply with this section and the specified municipality fails to request an
1066
appeal of the division's determination of noncompliance within 10 days after the
1067
day on which the second notice of noncompliance is sent; or
1068
(iv) after submitting a request for an appeal under Subsection (8), the appeal board
1069
issues a written decision upholding the division's determination of noncompliance.
1070
(b) The following apply to a specified municipality described in Subsection (9)(a) until
1071
the division provides notice under Subsection (9)(e):
1072
(i) the executive director of the Department of Transportation may not program funds
1073
from the Transportation Investment Fund of 2005, including the Transit
1074
Transportation Investment Fund, to projects located within the boundaries of the
1075
specified municipality in accordance with Subsection 72-2-124(5);
1076
(ii) beginning with a report submitted in 2024, the specified municipality shall pay a
1077
fee to the Olene Walker Housing Loan Fund in the amount of $250 per day that
1078
the specified municipality:
1079
(A) fails to submit the report to the division in accordance with this section,
1080
beginning the day after the day on which the report was due; or
1081
(B) fails to cure the deficiencies in the report, beginning the day after the day by
1082
which the cure was required to occur as described in the notice of
1083
noncompliance under Subsection (7); and
1084
(iii) beginning with the report submitted in 2025, the specified municipality shall pay
- 32 - 02-11 15:02 S.B. 262
1085
a fee to the Olene Walker Housing Loan Fund in the amount of $500 per day that
1086
the specified municipality, in a consecutive year:
1087
(A) fails to submit the report to the division in accordance with this section,
1088
beginning the day after the day on which the report was due; or
1089
(B) fails to cure the deficiencies in the report, beginning the day after the day by
1090
which the cure was required to occur as described in the notice of
1091
noncompliance under Subsection (7).
1092
(c) Upon determining that a specified municipality is ineligible for funds under this
1093
Subsection (9), and is required to pay a fee under Subsection (9)(b), if applicable, the
1094
division shall send a notice of ineligibility to the legislative body of the specified
1095
municipality, the Department of Transportation, the State Tax Commission, and the
1096
Governor's Office of Planning and Budget.
1097
(d) The notice described in Subsection (9)(c) shall:
1098
(i) name the specified municipality that is ineligible for funds;
1099
(ii) describe the funds for which the specified municipality is ineligible to receive;
1100
(iii) describe the fee the specified municipality is required to pay under Subsection
1101
(9)(b), if applicable; and
1102
(iv) state the basis for the division's determination that the specified municipality is
1103
ineligible for funds.
1104
(e) The division shall notify the legislative body of a specified municipality and the
1105
Department of Transportation in writing if the division determines that the provisions
1106
of this Subsection (9) no longer apply to the specified municipality.
1107
(f) The division may not determine that a specified municipality that is required to pay a
1108
fee under Subsection (9)(b) is in compliance with the reporting requirements of this
1109
section until the specified municipality pays all outstanding fees required under
1110
Subsection (9)(b) to the Olene Walker Housing Loan Fund, created under Title 35A,
1111
Chapter 8, Part 5, Olene Walker Housing Loan Fund.
1112
(10) In a civil action seeking enforcement or claiming a violation of this section or of
1113
Subsection 10-9a-404(4)(c), a plaintiff may not recover damages but may be awarded
1114
only injunctive or other equitable relief.
1115
Section 6. Section 10-9a-408.1 is enacted to read:
1116
10-9a-408.1 . Affordable housing density.
1117
(1) As used in this section:
1118
(a) "Affordable housing density" means, on average, at least:
- 33 - S.B. 262 02-11 15:02
1119
(i) eight residential units per acre; and
1120
(ii)(A) four residential units per acre that are offered for sale to an owner-occupier
1121
at a moderate income housing price point; or
1122
(B) six residential units per acre that are offered for rent at a moderate income
1123
housing price point.
1124
(b) "Moderate income housing price point" means:
1125
(i) for a residential unit that is offered for sale to an owner-occupier, a price
1126
affordable to a household with a gross income of no more than 120% of area
1127
median income for the county in which the residential unit is offered for sale; and
1128
(ii) for a residential unit that is offered for rent, a rental price affordable to a
1129
household with a gross income of no more than 80% of area median income for
1130
the county in which the residential unit is offered for rent.
1131
(2) Beginning January 1, 2027, a specified municipality shall include the following
1132
information in the specified municipality's moderate income housing report:
1133
(a) whether the specified municipality has implemented a density overlay, as described
1134
in Section 10-9a-403.2;
1135
(b) the amount of undeveloped land within the specified municipality that could achieve
1136
affordable housing density, including:
1137
(i) information on housing units that are entitled or approved but not yet developed
1138
on the undeveloped land within the specified municipality, if applicable; and
1139
(ii) the barriers, if any, to achieving affordable housing density on the undeveloped
1140
land within the specified municipality;
1141
(c) the percentage of area zoned residential within the specified municipality that has
1142
achieved affordable housing density;
1143
(d) a five-year projection for the percentage of area zoned residential within the
1144
specified municipality that will achieve affordable housing density; and
1145
(e) data to support the conclusions described in Subsections (2)(c) and (d).
1146
Section 7. Section 10-9a-535 is amended to read:
1147
10-9a-535 . Moderate income housing.
1148
(1) A municipality may only require the development of a certain number of moderate
1149
income housing units as a condition of approval of a land use application if:
1150
(a) the municipality and the applicant enter into a written agreement regarding the
1151
number of moderate income housing units; [or]
1152
(b) the municipality provides incentives for an applicant who agrees to include moderate
- 34 - 02-11 15:02 S.B. 262
1153
income housing units in a development[.] ; or
1154
(c) the applicant seeks to develop in a zone subject to density overlay, as described in
1155
Section 10-9a-403.2.
1156
(2)(a) If an applicant does not agree to participate in the development of moderate
1157
income housing units under Subsection (1)(a) or (b), a municipality may not take into
1158
consideration the applicant's decision in the municipality's determination of whether
1159
to approve or deny a land use application.
1160
(b) If an applicant does not agree to participate in the development of moderate income
1161
housing units under Subsection (1)(c), a municipality may take into consideration the
1162
applicant's decision in the municipality's determination of whether to approve or deny
1163
a land use application.
1164
(3) Notwithstanding Subsections (1) and (2), a municipality that imposes a resort
1165
community sales and use tax as described in Section 59-12-401, may require the
1166
development of a certain number of moderate income housing units as a condition of
1167
approval of a land use application if the requirement is in accordance with an ordinance
1168
enacted by the municipality before January 1, 2022.
1169
Section 8. Section 17-27a-103 is amended to read:
1170
17-27a-103 . Definitions.
1171
As used in this chapter:
1172
(1) "Accessory dwelling unit" means a habitable living unit added to, created within, or
1173
detached from a primary single-family dwelling and contained on one lot.
1174
(2) "Adversely affected party" means a person other than a land use applicant who:
1175
(a) owns real property adjoining the property that is the subject of a land use application
1176
or land use decision; or
1177
(b) will suffer a damage different in kind than, or an injury distinct from, that of the
1178
general community as a result of the land use decision.
1179
(3) "Affected entity" means a county, municipality, special district, special service district
1180
under Title 17D, Chapter 1, Special Service District Act, school district, interlocal
1181
cooperation entity established under Title 11, Chapter 13, Interlocal Cooperation Act,
1182
specified property owner, property owner's association, public utility, or the Department
1183
of Transportation, if:
1184
(a) the entity's services or facilities are likely to require expansion or significant
1185
modification because of an intended use of land;
1186
(b) the entity has filed with the county a copy of the entity's general or long-range plan;
- 35 - S.B. 262 02-11 15:02
1187
or
1188
(c) the entity has filed with the county a request for notice during the same calendar year
1189
and before the county provides notice to an affected entity in compliance with a
1190
requirement imposed under this chapter.
1191
(4) "Affected owner" means the owner of real property that is:
1192
(a) a single project;
1193
(b) the subject of a land use approval that sponsors of a referendum timely challenged in
1194
accordance with Subsection 20A-7-601(6); and
1195
(c) determined to be legally referable under Section 20A-7-602.8.
1196
(5) "Appeal authority" means the person, board, commission, agency, or other body
1197
designated by ordinance to decide an appeal of a decision of a land use application or a
1198
variance.
1199
(6) "Billboard" means a freestanding ground sign located on industrial, commercial, or
1200
residential property if the sign is designed or intended to direct attention to a business,
1201
product, or service that is not sold, offered, or existing on the property where the sign is
1202
located.
1203
(7)(a) "Charter school" means:
1204
(i) an operating charter school;
1205
(ii) a charter school applicant that a charter school authorizer approves in accordance
1206
with Title 53G, Chapter 5, Part 3, Charter School Authorization; or
1207
(iii) an entity that is working on behalf of a charter school or approved charter
1208
applicant to develop or construct a charter school building.
1209
(b) "Charter school" does not include a therapeutic school.
1210
(8) "Chief executive officer" means the person or body that exercises the executive powers
1211
of the county.
1212
(9) "Conditional use" means a land use that, because of the unique characteristics or
1213
potential impact of the land use on the county, surrounding neighbors, or adjacent land
1214
uses, may not be compatible in some areas or may be compatible only if certain
1215
conditions are required that mitigate or eliminate the detrimental impacts.
1216
(10) "Constitutional taking" means a governmental action that results in a taking of private
1217
property so that compensation to the owner of the property is required by the:
1218
(a) Fifth or Fourteenth Amendment of the Constitution of the United States; or
1219
(b) Utah Constitution, Article I, Section 22.
1220
(11) "County utility easement" means an easement that:
- 36 - 02-11 15:02 S.B. 262
1221
(a) a plat recorded in a county recorder's office described as a county utility easement or
1222
otherwise as a utility easement;
1223
(b) is not a protected utility easement or a public utility easement as defined in Section
1224
54-3-27;
1225
(c) the county or the county's affiliated governmental entity owns or creates; and
1226
(d)(i) either:
1227
(A) no person uses or occupies; or
1228
(B) the county or the county's affiliated governmental entity uses and occupies to
1229
provide a utility service, including sanitary sewer, culinary water, electrical,
1230
storm water, or communications or data lines; or
1231
(ii) a person uses or occupies with or without an authorized franchise or other
1232
agreement with the county.
1233
(12) "Culinary water authority" means the department, agency, or public entity with
1234
responsibility to review and approve the feasibility of the culinary water system and
1235
sources for the subject property.
1236
(13) "Development activity" means:
1237
(a) any construction or expansion of a building, structure, or use that creates additional
1238
demand and need for public facilities;
1239
(b) any change in use of a building or structure that creates additional demand and need
1240
for public facilities; or
1241
(c) any change in the use of land that creates additional demand and need for public
1242
facilities.
1243
(14)(a) "Development agreement" means a written agreement or amendment to a written
1244
agreement between a county and one or more parties that regulates or controls the use
1245
or development of a specific area of land.
1246
(b) "Development agreement" does not include an improvement completion assurance.
1247
(15)(a) "Disability" means a physical or mental impairment that substantially limits one
1248
or more of a person's major life activities, including a person having a record of such
1249
an impairment or being regarded as having such an impairment.
1250
(b) "Disability" does not include current illegal use of, or addiction to, any federally
1251
controlled substance, as defined in Section 102 of the Controlled Substances Act, 21
1252
U.S.C. Sec. 802.
1253
(16) "Educational facility":
1254
(a) means:
- 37 - S.B. 262 02-11 15:02
1255
(i) a school district's building at which pupils assemble to receive instruction in a
1256
program for any combination of grades from preschool through grade 12,
1257
including kindergarten and a program for children with disabilities;
1258
(ii) a structure or facility:
1259
(A) located on the same property as a building described in Subsection (16)(a)(i);
1260
and
1261
(B) used in support of the use of that building; and
1262
(iii) a building to provide office and related space to a school district's administrative
1263
personnel; and
1264
(b) does not include:
1265
(i) land or a structure, including land or a structure for inventory storage, equipment
1266
storage, food processing or preparing, vehicle storage or maintenance, or similar
1267
use that is:
1268
(A) not located on the same property as a building described in Subsection
1269
(16)(a)(i); and
1270
(B) used in support of the purposes of a building described in Subsection
1271
(16)(a)(i); or
1272
(ii) a therapeutic school.
1273
(17) "Fire authority" means the department, agency, or public entity with responsibility to
1274
review and approve the feasibility of fire protection and suppression services for the
1275
subject property.
1276
(18) "Flood plain" means land that:
1277
(a) is within the 100-year flood plain designated by the Federal Emergency Management
1278
Agency; or
1279
(b) has not been studied or designated by the Federal Emergency Management Agency
1280
but presents a likelihood of experiencing chronic flooding or a catastrophic flood
1281
event because the land has characteristics that are similar to those of a 100-year flood
1282
plain designated by the Federal Emergency Management Agency.
1283
(19) "Gas corporation" has the same meaning as defined in Section 54-2-1.
1284
(20) "General plan" means a document that a county adopts by ordinance that sets forth
1285
general guidelines for proposed future development of:
1286
(a) the unincorporated land within the county; or
1287
(b) for a mountainous planning district, the land within the mountainous planning
1288
district.
- 38 - 02-11 15:02 S.B. 262
1289
(21) "Geologic hazard" means:
1290
(a) a surface fault rupture;
1291
(b) shallow groundwater;
1292
(c) liquefaction;
1293
(d) a landslide;
1294
(e) a debris flow;
1295
(f) unstable soil;
1296
(g) a rock fall; or
1297
(h) any other geologic condition that presents a risk:
1298
(i) to life;
1299
(ii) of substantial loss of real property; or
1300
(iii) of substantial damage to real property.
1301
(22) "Home-based microschool" means the same as that term is defined in Section
1302
53G-6-201.
1303
(23) "Hookup fee" means a fee for the installation and inspection of any pipe, line, meter,
1304
or appurtenance to connect to a county water, sewer, storm water, power, or other utility
1305
system.
1306
(24) "Identical plans" means building plans submitted to a county that:
1307
(a) are clearly marked as "identical plans";
1308
(b) are substantially identical building plans that were previously submitted to and
1309
reviewed and approved by the county; and
1310
(c) describe a building that:
1311
(i) is located on land zoned the same as the land on which the building described in
1312
the previously approved plans is located;
1313
(ii) is subject to the same geological and meteorological conditions and the same law
1314
as the building described in the previously approved plans;
1315
(iii) has a floor plan identical to the building plan previously submitted to and
1316
reviewed and approved by the county; and
1317
(iv) does not require any additional engineering or analysis.
1318
(25) "Impact fee" means a payment of money imposed under Title 11, Chapter 36a, Impact
1319
Fees Act.
1320
(26) "Improvement completion assurance" means a surety bond, letter of credit, financial
1321
institution bond, cash, assignment of rights, lien, or other equivalent security required by
1322
a county to guaranty the proper completion of landscaping or an infrastructure
- 39 - S.B. 262 02-11 15:02
1323
improvement required as a condition precedent to:
1324
(a) recording a subdivision plat; or
1325
(b) development of a commercial, industrial, mixed use, or multifamily project.
1326
(27) "Improvement warranty" means an applicant's unconditional warranty that the
1327
applicant's installed and accepted landscaping or infrastructure improvement:
1328
(a) complies with the county's written standards for design, materials, and workmanship;
1329
and
1330
(b) will not fail in any material respect, as a result of poor workmanship or materials,
1331
within the improvement warranty period.
1332
(28) "Improvement warranty period" means a period:
1333
(a) no later than one year after a county's acceptance of required landscaping; or
1334
(b) no later than one year after a county's acceptance of required infrastructure, unless
1335
the county:
1336
(i) determines for good cause that a one-year period would be inadequate to protect
1337
the public health, safety, and welfare; and
1338
(ii) has substantial evidence, on record:
1339
(A) of prior poor performance by the applicant; or
1340
(B) that the area upon which the infrastructure will be constructed contains
1341
suspect soil and the county has not otherwise required the applicant to mitigate
1342
the suspect soil.
1343
(29) "Infrastructure improvement" means permanent infrastructure that is essential for the
1344
public health and safety or that:
1345
(a) is required for human consumption; and
1346
(b) an applicant must install:
1347
(i) in accordance with published installation and inspection specifications for public
1348
improvements; and
1349
(ii) as a condition of:
1350
(A) recording a subdivision plat;
1351
(B) obtaining a building permit; or
1352
(C) developing a commercial, industrial, mixed use, condominium, or multifamily
1353
project.
1354
(30) "Internal lot restriction" means a platted note, platted demarcation, or platted
1355
designation that:
1356
(a) runs with the land; and
- 40 - 02-11 15:02 S.B. 262
1357
(b)(i) creates a restriction that is enclosed within the perimeter of a lot described on
1358
the plat; or
1359
(ii) designates a development condition that is enclosed within the perimeter of a lot
1360
described on the plat.
1361
(31) "Interstate pipeline company" means a person or entity engaged in natural gas
1362
transportation subject to the jurisdiction of the Federal Energy Regulatory Commission
1363
under the Natural Gas Act, 15 U.S.C. Sec. 717 et seq.
1364
(32) "Intrastate pipeline company" means a person or entity engaged in natural gas
1365
transportation that is not subject to the jurisdiction of the Federal Energy Regulatory
1366
Commission under the Natural Gas Act, 15 U.S.C. Sec. 717 et seq.
1367
(33) "Land use applicant" means a property owner, or the property owner's designee, who
1368
submits a land use application regarding the property owner's land.
1369
(34) "Land use application":
1370
(a) means an application that is:
1371
(i) required by a county; and
1372
(ii) submitted by a land use applicant to obtain a land use decision; and
1373
(b) does not mean an application to enact, amend, or repeal a land use regulation.
1374
(35) "Land use authority" means:
1375
(a) a person, board, commission, agency, or body, including the local legislative body,
1376
designated by the local legislative body to act upon a land use application; or
1377
(b) if the local legislative body has not designated a person, board, commission, agency,
1378
or body, the local legislative body.
1379
(36) "Land use decision" means an administrative decision of a land use authority or appeal
1380
authority regarding:
1381
(a) a land use permit;
1382
(b) a land use application; or
1383
(c) the enforcement of a land use regulation, land use permit, or development agreement.
1384
(37) "Land use permit" means a permit issued by a land use authority.
1385
(38) "Land use regulation":
1386
(a) means a legislative decision enacted by ordinance, law, code, map, resolution,
1387
specification, fee, or rule that governs the use or development of land;
1388
(b) includes the adoption or amendment of a zoning map or the text of the zoning code;
1389
and
1390
(c) does not include:
- 41 - S.B. 262 02-11 15:02
1391
(i) a land use decision of the legislative body acting as the land use authority, even if
1392
the decision is expressed in a resolution or ordinance; or
1393
(ii) a temporary revision to an engineering specification that does not materially:
1394
(A) increase a land use applicant's cost of development compared to the existing
1395
specification; or
1396
(B) impact a land use applicant's use of land.
1397
(39) "Legislative body" means the county legislative body, or for a county that has adopted
1398
an alternative form of government, the body exercising legislative powers.
1399
(40) "Lot" means a tract of land, regardless of any label, that is created by and shown on a
1400
subdivision plat that has been recorded in the office of the county recorder.
1401
(41)(a) "Lot line adjustment" means a relocation of a lot line boundary between
1402
adjoining lots or between a lot and adjoining parcels in accordance with Section
1403
17-27a-608:
1404
(i) whether or not the lots are located in the same subdivision; and
1405
(ii) with the consent of the owners of record.
1406
(b) "Lot line adjustment" does not mean a new boundary line that:
1407
(i) creates an additional lot; or
1408
(ii) constitutes a subdivision or a subdivision amendment.
1409
(c) "Lot line adjustment" does not include a boundary line adjustment made by the
1410
Department of Transportation.
1411
(42) "Major transit investment corridor" means public transit service that uses or occupies:
1412
(a) public transit rail right-of-way;
1413
(b) dedicated road right-of-way for the use of public transit, such as bus rapid transit; or
1414
(c) fixed-route bus corridors subject to an interlocal agreement or contract between a
1415
municipality or county and:
1416
(i) a public transit district as defined in Section 17B-2a-802; or
1417
(ii) an eligible political subdivision as defined in Section 59-12-2219.
1418
(43) "Micro-education entity" means the same as that term is defined in Section 53G-6-201.
1419
(44) "Moderate income housing" means housing occupied or reserved for occupancy by
1420
households with a gross household income equal to or less than 80% of the median gross
1421
income for households of the same size in the county in which the housing is located.
1422
(45) "Mountainous planning district" means an area designated by a county legislative body
1423
in accordance with Section 17-27a-901.
1424
(46) "Nominal fee" means a fee that reasonably reimburses a county only for time spent and
- 42 - 02-11 15:02 S.B. 262
1425
expenses incurred in:
1426
(a) verifying that building plans are identical plans; and
1427
(b) reviewing and approving those minor aspects of identical plans that differ from the
1428
previously reviewed and approved building plans.
1429
(47) "Noncomplying structure" means a structure that:
1430
(a) legally existed before the structure's current land use designation; and
1431
(b) because of one or more subsequent land use ordinance changes, does not conform to
1432
the setback, height restrictions, or other regulations, excluding those regulations that
1433
govern the use of land.
1434
(48) "Nonconforming use" means a use of land that:
1435
(a) legally existed before the current land use designation;
1436
(b) has been maintained continuously since the time the land use ordinance regulation
1437
governing the land changed; and
1438
(c) because of one or more subsequent land use ordinance changes, does not conform to
1439
the regulations that now govern the use of the land.
1440
(49) "Official map" means a map drawn by county authorities and recorded in the county
1441
recorder's office that:
1442
(a) shows actual and proposed rights-of-way, centerline alignments, and setbacks for
1443
highways and other transportation facilities;
1444
(b) provides a basis for restricting development in designated rights-of-way or between
1445
designated setbacks to allow the government authorities time to purchase or
1446
otherwise reserve the land; and
1447
(c) has been adopted as an element of the county's general plan.
1448
(50) "Parcel" means any real property that is not a lot.
1449
(51)(a) "Parcel boundary adjustment" means a recorded agreement between owners of
1450
adjoining parcels adjusting the mutual boundary, either by deed or by a boundary line
1451
agreement in accordance with Section 17-27a-523, if no additional parcel is created
1452
and:
1453
(i) none of the property identified in the agreement is a lot; or
1454
(ii) the adjustment is to the boundaries of a single person's parcels.
1455
(b) "Parcel boundary adjustment" does not mean an adjustment of a parcel boundary line
1456
that:
1457
(i) creates an additional parcel; or
1458
(ii) constitutes a subdivision.
- 43 - S.B. 262 02-11 15:02
1459
(c) "Parcel boundary adjustment" does not include a boundary line adjustment made by
1460
the Department of Transportation.
1461
(52) "Person" means an individual, corporation, partnership, organization, association, trust,
1462
governmental agency, or any other legal entity.
1463
(53) "Plan for moderate income housing" means a written document adopted by a county
1464
legislative body that includes:
1465
(a) an estimate of the existing supply of moderate income housing located within the
1466
county;
1467
(b) an estimate of the need for moderate income housing in the county for the next five
1468
years;
1469
(c) a survey of total residential land use;
1470
(d) an evaluation of how existing land uses and zones affect opportunities for moderate
1471
income housing; and
1472
(e) a description of the county's program to encourage an adequate supply of moderate
1473
income housing.
1474
(54) "Planning advisory area" means a contiguous, geographically defined portion of the
1475
unincorporated area of a county established under this part with planning and zoning
1476
functions as exercised through the planning advisory area planning commission, as
1477
provided in this chapter, but with no legal or political identity separate from the county
1478
and no taxing authority.
1479
(55) "Plat" means an instrument subdividing property into lots as depicted on a map or
1480
other graphical representation of lands that a licensed professional land surveyor makes
1481
and prepares in accordance with Section 17-27a-603 or 57-8-13.
1482
(56) "Potential geologic hazard area" means an area that:
1483
(a) is designated by a Utah Geological Survey map, county geologist map, or other
1484
relevant map or report as needing further study to determine the area's potential for
1485
geologic hazard; or
1486
(b) has not been studied by the Utah Geological Survey or a county geologist but
1487
presents the potential of geologic hazard because the area has characteristics similar
1488
to those of a designated geologic hazard area.
1489
(57) "Public agency" means:
1490
(a) the federal government;
1491
(b) the state;
1492
(c) a county, municipality, school district, special district, special service district, or
- 44 - 02-11 15:02 S.B. 262
1493
other political subdivision of the state; or
1494
(d) a charter school.
1495
(58) "Public hearing" means a hearing at which members of the public are provided a
1496
reasonable opportunity to comment on the subject of the hearing.
1497
(59) "Public meeting" means a meeting that is required to be open to the public under Title
1498
52, Chapter 4, Open and Public Meetings Act.
1499
(60) "Public street" means a public right-of-way, including a public highway, public
1500
avenue, public boulevard, public parkway, public road, public lane, public alley, public
1501
viaduct, public subway, public tunnel, public bridge, public byway, other public
1502
transportation easement, or other public way.
1503
(61) "Receiving zone" means an unincorporated area of a county that the county designates,
1504
by ordinance, as an area in which an owner of land may receive a transferable
1505
development right.
1506
(62) "Record of survey map" means a map of a survey of land prepared in accordance with
1507
Section 10-9a-603, 17-23-17, 17-27a-603, or 57-8-13.
1508
(63) "Residential facility for persons with a disability" means a residence:
1509
(a) in which more than one person with a disability resides; and
1510
(b) which is licensed or certified by the Department of Health and Human Services
1511
under:
1512
(i) Title 26B, Chapter 2, Part 1, Human Services Programs and Facilities; or
1513
(ii) Title 26B, Chapter 2, Part 2, Health Care Facility Licensing and Inspection.
1514
(64) "Residential roadway" means a public local residential road that:
1515
(a) will serve primarily to provide access to adjacent primarily residential areas and
1516
property;
1517
(b) is designed to accommodate minimal traffic volumes or vehicular traffic;
1518
(c) is not identified as a supplementary to a collector or other higher system classified
1519
street in an approved municipal street or transportation master plan;
1520
(d) has a posted speed limit of 25 miles per hour or less;
1521
(e) does not have higher traffic volumes resulting from connecting previously separated
1522
areas of the municipal road network;
1523
(f) cannot have a primary access, but can have a secondary access, and does not abut lots
1524
intended for high volume traffic or community centers, including schools, recreation
1525
centers, sports complexes, or libraries; and
1526
(g) primarily serves traffic within a neighborhood or limited residential area and is not
- 45 - S.B. 262 02-11 15:02
1527
necessarily continuous through several residential areas.
1528
(65) "Rules of order and procedure" means a set of rules that govern and prescribe in a
1529
public meeting:
1530
(a) parliamentary order and procedure;
1531
(b) ethical behavior; and
1532
(c) civil discourse.
1533
(66) "Sanitary sewer authority" means the department, agency, or public entity with
1534
responsibility to review and approve the feasibility of sanitary sewer services or onsite
1535
wastewater systems.
1536
(67) "Sending zone" means an unincorporated area of a county that the county designates,
1537
by ordinance, as an area from which an owner of land may transfer a transferable
1538
development right.
1539
(68) "Site plan" means a document or map that may be required by a county during a
1540
preliminary review preceding the issuance of a building permit to demonstrate that an
1541
owner's or developer's proposed development activity meets a land use requirement.
1542
(69)(a) "Special district" means an entity under Title 17B, Limited Purpose Local
1543
Government Entities - Special Districts.
1544
(b) "Special district" includes a governmental or quasi-governmental entity that is not a
1545
county, municipality, school district, or the state.
1546
(70) "Specified public agency" means:
1547
(a) the state;
1548
(b) a school district; or
1549
(c) a charter school.
1550
(71) "Specified public utility" means an electrical corporation, gas corporation, or telephone
1551
corporation, as those terms are defined in Section 54-2-1.
1552
(72) "State" includes any department, division, or agency of the state.
1553
(73)(a) "Subdivision" means any land that is divided, resubdivided, or proposed to be
1554
divided into two or more lots or other division of land for the purpose, whether
1555
immediate or future, for offer, sale, lease, or development either on the installment
1556
plan or upon any and all other plans, terms, and conditions.
1557
(b) "Subdivision" includes:
1558
(i) the division or development of land, whether by deed, metes and bounds
1559
description, devise and testacy, map, plat, or other recorded instrument, regardless
1560
of whether the division includes all or a portion of a parcel or lot; and
- 46 - 02-11 15:02 S.B. 262
1561
(ii) except as provided in Subsection (73)(c), divisions of land for residential and
1562
nonresidential uses, including land used or to be used for commercial, agricultural,
1563
and industrial purposes.
1564
(c) "Subdivision" does not include:
1565
(i) a bona fide division or partition of agricultural land for agricultural purposes;
1566
(ii) a boundary line agreement recorded with the county recorder's office between
1567
owners of adjoining parcels adjusting the mutual boundary in accordance with
1568
Section 17-27a-523 if no new lot is created;
1569
(iii) a recorded document, executed by the owner of record:
1570
(A) revising the legal descriptions of multiple parcels into one legal description
1571
encompassing all such parcels; or
1572
(B) joining a lot to a parcel;
1573
(iv) a bona fide division or partition of land in a county other than a first class county
1574
for the purpose of siting, on one or more of the resulting separate parcels:
1575
(A) an electrical transmission line or a substation;
1576
(B) a natural gas pipeline or a regulation station; or
1577
(C) an unmanned telecommunications, microwave, fiber optic, electrical, or other
1578
utility service regeneration, transformation, retransmission, or amplification
1579
facility;
1580
(v) a boundary line agreement between owners of adjoining subdivided properties
1581
adjusting the mutual lot line boundary in accordance with Sections 17-27a-523
1582
and 17-27a-608 if:
1583
(A) no new dwelling lot or housing unit will result from the adjustment; and
1584
(B) the adjustment will not violate any applicable land use ordinance;
1585
(vi) a bona fide division of land by deed or other instrument if the deed or other
1586
instrument states in writing that the division:
1587
(A) is in anticipation of future land use approvals on the parcel or parcels;
1588
(B) does not confer any land use approvals; and
1589
(C) has not been approved by the land use authority;
1590
(vii) a parcel boundary adjustment;
1591
(viii) a lot line adjustment;
1592
(ix) a road, street, or highway dedication plat;
1593
(x) a deed or easement for a road, street, or highway purpose; or
1594
(xi) any other division of land authorized by law.
- 47 - S.B. 262 02-11 15:02
1595
(74)(a) "Subdivision amendment" means an amendment to a recorded subdivision in
1596
accordance with Section 17-27a-608 that:
1597
(i) vacates all or a portion of the subdivision;
1598
(ii) alters the outside boundary of the subdivision;
1599
(iii) changes the number of lots within the subdivision;
1600
(iv) alters a public right-of-way, a public easement, or public infrastructure within the
1601
subdivision; or
1602
(v) alters a common area or other common amenity within the subdivision.
1603
(b) "Subdivision amendment" does not include a lot line adjustment, between a single lot
1604
and an adjoining lot or parcel, that alters the outside boundary of the subdivision.
1605
(75) "Substantial evidence" means evidence that:
1606
(a) is beyond a scintilla; and
1607
(b) a reasonable mind would accept as adequate to support a conclusion.
1608
(76) "Suspect soil" means soil that has:
1609
(a) a high susceptibility for volumetric change, typically clay rich, having more than a
1610
3% swell potential;
1611
(b) bedrock units with high shrink or swell susceptibility; or
1612
(c) gypsiferous silt and clay, gypsum, or bedrock units containing abundant gypsum
1613
commonly associated with dissolution and collapse features.
1614
(77) "Therapeutic school" means a residential group living facility:
1615
(a) for four or more individuals who are not related to:
1616
(i) the owner of the facility; or
1617
(ii) the primary service provider of the facility;
1618
(b) that serves students who have a history of failing to function:
1619
(i) at home;
1620
(ii) in a public school; or
1621
(iii) in a nonresidential private school; and
1622
(c) that offers:
1623
(i) room and board; and
1624
(ii) an academic education integrated with:
1625
(A) specialized structure and supervision; or
1626
(B) services or treatment related to a disability, an emotional development, a
1627
behavioral development, a familial development, or a social development.
1628
(78) "Transferable development right" means a right to develop and use land that originates
- 48 - 02-11 15:02 S.B. 262
1629
by an ordinance that authorizes a land owner in a designated sending zone to transfer
1630
land use rights from a designated sending zone to a designated receiving zone.
1631
(79) "Unincorporated" means the area outside of the incorporated area of a municipality.
1632
(80) "Water interest" means any right to the beneficial use of water, including:
1633
(a) each of the rights listed in Section 73-1-11; and
1634
(b) an ownership interest in the right to the beneficial use of water represented by:
1635
(i) a contract; or
1636
(ii) a share in a water company, as defined in Section 73-3-3.5.
1637
(81) "Zoning map" means a map, adopted as part of a land use ordinance, that depicts land
1638
use zones, overlays, or districts.
1639
Section 9. Section 17-27a-403 is amended to read:
1640
17-27a-403 . Plan preparation.
1641
(1)(a) The planning commission shall provide notice, as provided in Section 17-27a-203,
1642
of the planning commission's intent to make a recommendation to the county
1643
legislative body for a general plan or a comprehensive general plan amendment when
1644
the planning commission initiates the process of preparing the planning commission's
1645
recommendation.
1646
(b) The planning commission shall make and recommend to the legislative body a
1647
proposed general plan for:
1648
(i) the unincorporated area within the county; or
1649
(ii) if the planning commission is a planning commission for a mountainous planning
1650
district, the mountainous planning district.
1651
(c)(i) The plan may include planning for incorporated areas if, in the planning
1652
commission's judgment, they are related to the planning of the unincorporated
1653
territory or of the county as a whole.
1654
(ii) Elements of the county plan that address incorporated areas are not an official
1655
plan or part of a municipal plan for any municipality, unless the county plan is
1656
recommended by the municipal planning commission and adopted by the
1657
governing body of the municipality.
1658
(2)(a) At a minimum, the proposed general plan, with the accompanying maps, charts,
1659
and descriptive and explanatory matter, shall include the planning commission's
1660
recommendations for the following plan elements:
1661
(i) a land use element that:
1662
(A) designates the long-term goals and the proposed extent, general distribution,
- 49 - S.B. 262 02-11 15:02
1663
and location of land for housing for residents of various income levels,
1664
business, industry, agriculture, recreation, education, public buildings and
1665
grounds, open space, and other categories of public and private uses of land as
1666
appropriate;
1667
(B) includes a statement of the projections for and standards of population density
1668
and building intensity recommended for the various land use categories
1669
covered by the plan;
1670
(C) is coordinated to integrate the land use element with the water use and
1671
preservation element; and
1672
(D) accounts for the effect of land use categories and land uses on water demand;
1673
(ii) a transportation and traffic circulation element that:
1674
(A) provides the general location and extent of existing and proposed freeways,
1675
arterial and collector streets, public transit, active transportation facilities, and
1676
other modes of transportation that the planning commission considers
1677
appropriate;
1678
(B) addresses the county's plan for residential and commercial development
1679
around major transit investment corridors to maintain and improve the
1680
connections between housing, employment, education, recreation, and
1681
commerce; and
1682
(C) correlates with the population projections, the employment projections, and
1683
the proposed land use element of the general plan;
1684
(iii) for a specified county as defined in Section 17-27a-408, a moderate income
1685
housing element that:
1686
(A) provides a realistic opportunity to meet the need for additional moderate
1687
income housing within the next five years;
1688
(B) selects three or more moderate income housing strategies described in
1689
Subsection (2)(b)(ii) for implementation; and
1690
(C) includes an implementation plan as provided in Subsection (2)(e);
1691
(iv) a resource management plan detailing the findings, objectives, and policies
1692
required by Subsection 17-27a-401(3); and
1693
(v) a water use and preservation element that addresses:
1694
(A) the effect of permitted development or patterns of development on water
1695
demand and water infrastructure;
1696
(B) methods of reducing water demand and per capita consumption for future
- 50 - 02-11 15:02 S.B. 262
1697
development;
1698
(C) methods of reducing water demand and per capita consumption for existing
1699
development; and
1700
(D) opportunities for the county to modify the county's operations to eliminate
1701
practices or conditions that waste water.
1702
(b) In drafting the moderate income housing element, the planning commission:
1703
(i) shall consider the Legislature's determination that counties should facilitate a
1704
reasonable opportunity for a variety of housing, including moderate income
1705
housing:
1706
(A) to meet the needs of people of various income levels living, working, or
1707
desiring to live or work in the community; and
1708
(B) to allow people with various incomes to benefit from and fully participate in
1709
all aspects of neighborhood and community life; and
1710
(ii) shall include an analysis of how the county will provide a realistic opportunity for
1711
the development of moderate income housing within the planning horizon,
1712
including a recommendation to implement three or more of the following
1713
moderate income housing strategies:
1714
(A) rezone for densities necessary to facilitate the production of moderate income
1715
housing, including by implementing a density overlay as described in Section
1716
17-27a-403.1;
1717
(B) demonstrate investment in the rehabilitation or expansion of infrastructure that
1718
facilitates the construction of moderate income housing;
1719
(C) demonstrate investment in the rehabilitation of existing uninhabitable housing
1720
stock into moderate income housing;
1721
(D) identify and utilize county general fund subsidies or other sources of revenue
1722
to waive construction related fees that are otherwise generally imposed by the
1723
county for the construction or rehabilitation of moderate income housing;
1724
(E) create or allow for, and reduce regulations related to, internal or detached
1725
accessory dwelling units in residential zones;
1726
(F) zone or rezone for higher density or moderate income residential development
1727
in commercial or mixed-use zones, commercial centers, or employment centers;
1728
(G) amend land use regulations to allow for higher density or new moderate
1729
income residential development in commercial or mixed-use zones near major
1730
transit investment corridors;
- 51 - S.B. 262 02-11 15:02
1731
(H) amend land use regulations to eliminate or reduce parking requirements for
1732
residential development where a resident is less likely to rely on the resident's
1733
own vehicle, such as residential development near major transit investment
1734
corridors or senior living facilities;
1735
(I) amend land use regulations to allow for single room occupancy developments;
1736
(J) implement zoning incentives for moderate income units in new developments;
1737
(K) preserve existing and new moderate income housing and subsidized units by
1738
utilizing a landlord incentive program, providing for deed restricted units
1739
through a grant program, or establishing a housing loss mitigation fund;
1740
(L) reduce, waive, or eliminate impact fees related to moderate income housing;
1741
(M) demonstrate creation of, or participation in, a community land trust program
1742
for moderate income housing;
1743
(N) implement a mortgage assistance program for employees of the county, an
1744
employer that provides contracted services for the county, or any other public
1745
employer that operates within the county;
1746
(O) apply for or partner with an entity that applies for state or federal funds or tax
1747
incentives to promote the construction of moderate income housing, an entity
1748
that applies for programs offered by the Utah Housing Corporation within that
1749
agency's funding capacity, an entity that applies for affordable housing
1750
programs administered by the Department of Workforce Services, an entity
1751
that applies for services provided by a public housing authority to preserve and
1752
create moderate income housing, or any other entity that applies for programs
1753
or services that promote the construction or preservation of moderate income
1754
housing;
1755
(P) demonstrate utilization of a moderate income housing set aside from a
1756
community reinvestment agency, redevelopment agency, or community
1757
development and renewal agency to create or subsidize moderate income
1758
housing;
1759
(Q) create a housing and transit reinvestment zone pursuant to Title 63N, Chapter
1760
3, Part 6, Housing and Transit Reinvestment Zone Act;
1761
(R) create a home ownership promotion zone pursuant to Part 12, Home
1762
Ownership Promotion Zone for Counties;
1763
(S) eliminate impact fees for any accessory dwelling unit that is not an internal
1764
accessory dwelling unit as defined in Section 10-9a-530;
- 52 - 02-11 15:02 S.B. 262
1765
(T) create a program to transfer development rights for moderate income housing;
1766
(U) ratify a joint acquisition agreement with another local political subdivision for
1767
the purpose of combining resources to acquire property for moderate income
1768
housing;
1769
(V) develop a moderate income housing project for residents who are disabled or
1770
55 years old or older;
1771
(W) create or allow for, and reduce regulations related to, multifamily residential
1772
dwellings compatible in scale and form with detached single-family residential
1773
dwellings and located in walkable communities within residential or mixed-use
1774
zones; and
1775
(X) demonstrate implementation of any other program or strategy to address the
1776
housing needs of residents of the county who earn less than 80% of the area
1777
median income, including the dedication of a local funding source to moderate
1778
income housing or the adoption of a land use ordinance that requires 10% or
1779
more of new residential development in a residential zone be dedicated to
1780
moderate income housing.
1781
(c) If a specified county, as defined in Section 17-27a-408, has created a small public
1782
transit district, as defined in Section 17B-2a-802, on or before January 1, 2022, the
1783
specified county shall include as part of the specified county's recommended
1784
strategies under Subsection (2)(b)(ii) a recommendation to implement the strategy
1785
described in Subsection (2)(b)(ii)(Q).
1786
(d) The planning commission shall identify each moderate income housing strategy
1787
recommended to the legislative body for implementation by restating the exact
1788
language used to describe the strategy in Subsection (2)(b)(ii).
1789
(e) In drafting the land use element, the planning commission shall:
1790
(i) identify and consider each agriculture protection area within the unincorporated
1791
area of the county or mountainous planning district;
1792
(ii) avoid proposing a use of land within an agriculture protection area that is
1793
inconsistent with or detrimental to the use of the land for agriculture; and
1794
(iii) consider and coordinate with any station area plans adopted by municipalities
1795
located within the county under Section 10-9a-403.1.
1796
(f) In drafting the transportation and traffic circulation element, the planning
1797
commission shall:
1798
(i)(A) consider and coordinate with the regional transportation plan developed by
- 53 - S.B. 262 02-11 15:02
1799
the county's region's metropolitan planning organization, if the relevant areas
1800
of the county are within the boundaries of a metropolitan planning
1801
organization; or
1802
(B) consider and coordinate with the long-range transportation plan developed by
1803
the Department of Transportation, if the relevant areas of the county are not
1804
within the boundaries of a metropolitan planning organization; and
1805
(ii) consider and coordinate with any station area plans adopted by municipalities
1806
located within the county under Section 10-9a-403.1.
1807
(g)(i) In drafting the implementation plan portion of the moderate income housing
1808
element as described in Subsection (2)(a)(iii)(C), the planning commission shall
1809
recommend to the legislative body the establishment of a five-year timeline for
1810
implementing each of the moderate income housing strategies selected by the
1811
county for implementation.
1812
(ii) The timeline described in Subsection (2)(g)(i) shall:
1813
(A) identify specific measures and benchmarks for implementing each moderate
1814
income housing strategy selected by the county; and
1815
(B) provide flexibility for the county to make adjustments as needed.
1816
(h) In drafting the water use and preservation element, the planning commission:
1817
(i) shall consider applicable regional water conservation goals recommended by the
1818
Division of Water Resources;
1819
(ii) shall consult with the Division of Water Resources for information and technical
1820
resources regarding regional water conservation goals, including how
1821
implementation of the land use element and water use and preservation element
1822
may affect the Great Salt Lake;
1823
(iii) shall notify the community water systems serving drinking water within the
1824
unincorporated portion of the county and request feedback from the community
1825
water systems about how implementation of the land use element and water use
1826
and preservation element may affect:
1827
(A) water supply planning, including drinking water source and storage capacity
1828
consistent with Section 19-4-114; and
1829
(B) water distribution planning, including master plans, infrastructure asset
1830
management programs and plans, infrastructure replacement plans, and impact
1831
fee facilities plans;
1832
(iv) shall consider the potential opportunities and benefits of planning for
- 54 - 02-11 15:02 S.B. 262
1833
regionalization of public water systems;
1834
(v) shall consult with the Department of Agriculture and Food for information and
1835
technical resources regarding the potential benefits of agriculture conservation
1836
easements and potential implementation of agriculture water optimization projects
1837
that would support regional water conservation goals;
1838
(vi) shall notify an irrigation or canal company located in the county so that the
1839
irrigation or canal company can be involved in the protection and integrity of the
1840
irrigation or canal company's delivery systems;
1841
(vii) shall include a recommendation for:
1842
(A) water conservation policies to be determined by the county; and
1843
(B) landscaping options within a public street for current and future development
1844
that do not require the use of lawn or turf in a parkstrip;
1845
(viii) shall review the county's land use ordinances and include a recommendation for
1846
changes to an ordinance that promotes the inefficient use of water;
1847
(ix) shall consider principles of sustainable landscaping, including the:
1848
(A) reduction or limitation of the use of lawn or turf;
1849
(B) promotion of site-specific landscape design that decreases stormwater runoff
1850
or runoff of water used for irrigation;
1851
(C) preservation and use of healthy trees that have a reasonable water requirement
1852
or are resistant to dry soil conditions;
1853
(D) elimination or regulation of ponds, pools, and other features that promote
1854
unnecessary water evaporation;
1855
(E) reduction of yard waste; and
1856
(F) use of an irrigation system, including drip irrigation, best adapted to provide
1857
the optimal amount of water to the plants being irrigated;
1858
(x) may include recommendations for additional water demand reduction strategies,
1859
including:
1860
(A) creating a water budget associated with a particular type of development;
1861
(B) adopting new or modified lot size, configuration, and landscaping standards
1862
that will reduce water demand for new single family development;
1863
(C) providing one or more water reduction incentives for existing landscapes and
1864
irrigation systems and installation of water fixtures or systems that minimize
1865
water demand;
1866
(D) discouraging incentives for economic development activities that do not
- 55 - S.B. 262 02-11 15:02
1867
adequately account for water use or do not include strategies for reducing
1868
water demand; and
1869
(E) adopting water concurrency standards requiring that adequate water supplies
1870
and facilities are or will be in place for new development; and
1871
(xi) shall include a recommendation for low water use landscaping standards for a
1872
new:
1873
(A) commercial, industrial, or institutional development;
1874
(B) common interest community, as defined in Section 57-25-102; or
1875
(C) multifamily housing project.
1876
(3) The proposed general plan may include:
1877
(a) an environmental element that addresses:
1878
(i) to the extent not covered by the county's resource management plan, the
1879
protection, conservation, development, and use of natural resources, including the
1880
quality of:
1881
(A) air;
1882
(B) forests;
1883
(C) soils;
1884
(D) rivers;
1885
(E) groundwater and other waters;
1886
(F) harbors;
1887
(G) fisheries;
1888
(H) wildlife;
1889
(I) minerals; and
1890
(J) other natural resources; and
1891
(ii)(A) the reclamation of land, flood control, prevention and control of the
1892
pollution of streams and other waters;
1893
(B) the regulation of the use of land on hillsides, stream channels and other
1894
environmentally sensitive areas;
1895
(C) the prevention, control, and correction of the erosion of soils;
1896
(D) the preservation and enhancement of watersheds and wetlands; and
1897
(E) the mapping of known geologic hazards;
1898
(b) a public services and facilities element showing general plans for sewage, water,
1899
waste disposal, drainage, public utilities, rights-of-way, easements, and facilities for
1900
them, police and fire protection, and other public services;
- 56 - 02-11 15:02 S.B. 262
1901
(c) a rehabilitation, redevelopment, and conservation element consisting of plans and
1902
programs for:
1903
(i) historic preservation;
1904
(ii) the diminution or elimination of a development impediment as defined in Section
1905
17C-1-102; and
1906
(iii) redevelopment of land, including housing sites, business and industrial sites, and
1907
public building sites;
1908
(d) an economic element composed of appropriate studies and forecasts, as well as an
1909
economic development plan, which may include review of existing and projected
1910
county revenue and expenditures, revenue sources, identification of basic and
1911
secondary industry, primary and secondary market areas, employment, and retail
1912
sales activity;
1913
(e) recommendations for implementing all or any portion of the general plan, including
1914
the adoption of land and water use ordinances, capital improvement plans,
1915
community development and promotion, and any other appropriate action;
1916
(f) provisions addressing any of the matters listed in Subsection 17-27a-401(2) or
1917
(3)(a)(i); and
1918
(g) any other element the county considers appropriate.
1919
Section 10. Section 17-27a-403.1 is enacted to read:
1920
17-27a-403.1 . Residential density overlay.
1921
(1) As used in this section:
1922
(a) "Density overlay" means zoning regulations applied by a county to a housing-eligible
1923
zone that allows:
1924
(i) the development of:
1925
(A) single-family dwellings on small lots;
1926
(B) diverse housing options; or
1927
(C) a combination of single-family dwellings on small lots and diverse housing
1928
options; and
1929
(ii)(A) a minimum of eight housing units per acre if the housing units are served
1930
by sewer lines; or
1931
(B) the maximum per-acre density permissible for health and safety, as
1932
determined by the local building authority and local health department, if the
1933
housing units are served by septic tank.
1934
(b) "Diverse housing options" means one or more of the following types of residential
- 57 - S.B. 262 02-11 15:02
1935
units:
1936
(i) two-family dwellings;
1937
(ii) three- and four-family dwellings of up to two levels;
1938
(iii) town homes; or
1939
(iv) live-work units, as described by the International Building Code, in which one or
1940
more residential housing units are available above a commercial property.
1941
(c) "Housing-eligible zone" means an unincorporated area of a county zoned in a way
1942
that allows for the development of a residential unit, including residential zones and
1943
mixed-use zones.
1944
(d) "Owner-occupier" means an individual who owns, solely or jointly, a housing unit in
1945
which the individual lives as the individual's primary residence.
1946
(e) "Small lot" means a residential lot that is 5,400 square feet or smaller.
1947
(2) A county may implement a density overlay allowing for increased development within
1948
unincorporated housing-eligible zones of the county.
1949
(3) If a legislative body adopts a density overlay in a housing-eligible zone at the time the
1950
legislative body adopts the density overlay, the county may adopt additional
1951
requirements to ensure:
1952
(a) that some or all of the residential units offered for sale in the area subject to the
1953
density overlay be deed-restricted for up to five years to ensure owner-occupancy; or
1954
(b) that some or all of the residential units in the density overlay be:
1955
(i) offered for sale to an owner-occupier at a purchase price affordable to a household
1956
with a gross income of no more than 120% of area median income for the county
1957
in which the residential unit is offered for sale; or
1958
(ii) offered for rent at a rental price affordable to a household with a gross income of
1959
no more than 80% of area median income for the county in which the residential
1960
unit is offered for rent.
1961
(4) Notwithstanding Section 17-27a-530, a county that adopts a density overlay as
1962
described in this section may also adopt a building design element to promote the
1963
development of diverse housing options within the density overlay.
1964
Section 11. Section 17-27a-403.2 is enacted to read:
1965
17-27a-403.2 . Residential density bonus.
1966
(1) As used in this section:
1967
(a) "Density bonus-eligible area" means an unincorporated area in a county:
1968
(i) zoned for a minimum of six housing units per acre; or
- 58 - 02-11 15:02 S.B. 262
1969
(ii) subject to a development agreement that provides at least six units to the acre.
1970
(b) "Owner-occupier" means the same as that term is defined in Section 17-27a-403.1.
1971
(2)(a) In a density bonus-eligible area, a county may approve an applicant's request for
1972
an additional 0.5 housing units per acre in exchange for one or more of the following:
1973
(i) requiring at least one housing unit per acre being offered for sale to an
1974
owner-occupier at a price point 80% or less of the median county home price for
1975
housing of that type;
1976
(ii) requiring at least one housing unit per acre being deed-restricted to
1977
owner-occupancy for at least five years;
1978
(iii) requiring at least one housing unit per acre to be deed-restricted for occupancy
1979
by at least one individual employed within the geographic region of the
1980
municipality or a five mile radius of the boundary of the county; or
1981
(iv) requiring at least two housing units per acre to be no larger than 1,600 square feet.
1982
(b) Notwithstanding Section 17-27a-530, in a density bonus-eligible area, a county may
1983
implement a building design element if the building design element is designed to
1984
promote density greater than six housing units per acre.
1985
Section 12. Section 17-27a-408 is amended to read:
1986
17-27a-408 . Moderate income housing report -- Contents -- Prioritization for
1987
funds or projects -- Ineligibility for funds after noncompliance -- Civil actions.
1988
(1) As used in this section:
1989
(a) "Division" means the Housing and Community Development Division within the
1990
Department of Workforce Services.
1991
(b) "Implementation plan" means the implementation plan adopted as part of the
1992
moderate income housing element of a specified county's general plan as provided in
1993
Subsection 17-27a-403(2)(g).
1994
(c) "Initial report" means the one-time moderate income housing report described in
1995
Subsection (2).
1996
(d) "Moderate income housing strategy" means a strategy described in Subsection
1997
17-27a-403(2)(b)(ii).
1998
(e) "Report" means an initial report or a subsequent report.
1999
(f) "Specified county" means a county of the first, second, or third class, which has a
2000
population of more than 5,000 in the county's unincorporated areas.
2001
(g) "Subsequent progress report" means the annual moderate income housing report
2002
described in Subsection (3).
- 59 - S.B. 262 02-11 15:02
2003
(2)(a) The legislative body of a specified county shall annually submit an initial report to
2004
the division.
2005
(b)(i) This Subsection (2)(b) applies to a county that is not a specified county as of
2006
January 1, 2023.
2007
(ii) As of January 1, if a county described in Subsection (2)(b)(i) changes from one
2008
class to another or grows in population to qualify as a specified county, the county
2009
shall submit an initial plan to the division on or before August 1 of the first
2010
calendar year beginning on January 1 in which the county qualifies as a specified
2011
county.
2012
(c) The initial report shall:
2013
(i) identify each moderate income housing strategy selected by the specified county
2014
for continued, ongoing, or one-time implementation, using the exact language
2015
used to describe the moderate income housing strategy in Subsection 17-27a-403
2016
(2)(b)(ii); and
2017
(ii) include an implementation plan.
2018
(3)(a) After the division approves a specified county's initial report under this section,
2019
the specified county shall, as an administrative act, annually submit to the division a
2020
subsequent progress report on or before August 1 of each year after the year in which
2021
the specified county is required to submit the initial report.
2022
(b) The subsequent progress report shall include:
2023
(i) subject to Subsection (3)(c), a description of each action, whether one-time or
2024
ongoing, taken by the specified county during the previous 12-month period to
2025
implement the moderate income housing strategies identified in the initial report
2026
for implementation;
2027
(ii) a description of each land use regulation or land use decision made by the
2028
specified county during the previous 12-month period to implement the moderate
2029
income housing strategies, including an explanation of how the land use
2030
regulation or land use decision supports the specified county's efforts to
2031
implement the moderate income housing strategies;
2032
(iii) a description of any barriers encountered by the specified county in the previous
2033
12-month period in implementing the moderate income housing strategies;
2034
(iv) the number of residential dwelling units that have been entitled that have not
2035
received a building permit as of the submission date of the progress report;
2036
(v) shapefiles, or website links if shapefiles are not available, to current maps and
- 60 - 02-11 15:02 S.B. 262
2037
tables related to zoning;
2038
(vi) information regarding the number of internal and external or detached accessory
2039
dwelling units located within the specified county for which the specified county:
2040
(A) issued a building permit to construct; or
2041
(B) issued a business license or comparable license or permit to rent;
2042
(vii) a description of how the market has responded to the selected moderate income
2043
housing strategies, including the number of entitled moderate income housing
2044
units or other relevant data; [and]
2045
(viii) beginning January 1, 2027, the information described in Section 17-27a-408.1;
2046
and
2047
[(viii)] (ix) any recommendations on how the state can support the specified county in
2048
implementing the moderate income housing strategies.
2049
(c) For purposes of describing actions taken by a specified county under Subsection
2050
(3)(b)(i), the specified county may include an ongoing action taken by the specified
2051
county prior to the 12-month reporting period applicable to the subsequent progress
2052
report if the specified county:
2053
(i) has already adopted an ordinance, approved a land use application, made an
2054
investment, or approved an agreement or financing that substantially promotes the
2055
implementation of a moderate income housing strategy identified in the initial
2056
report; and
2057
(ii) demonstrates in the subsequent progress report that the action taken under
2058
Subsection (3)(c)(i) is relevant to making meaningful progress towards the
2059
specified county's implementation plan.
2060
(d) A specified county's report shall be in a form:
2061
(i) approved by the division; and
2062
(ii) made available by the division on or before May 1 of the year in which the report
2063
is required.
2064
(4) Within 90 days after the day on which the division receives a specified county's report,
2065
the division shall:
2066
(a) post the report on the division's website;
2067
(b) send a copy of the report to the Department of Transportation, the Governor's Office
2068
of Planning and Budget, the association of governments in which the specified
2069
county is located, and, if the unincorporated area of the specified county is located
2070
within the boundaries of a metropolitan planning organization, the appropriate
- 61 - S.B. 262 02-11 15:02
2071
metropolitan planning organization; and
2072
(c) subject to Subsection (5), review the report to determine compliance with this section.
2073
(5)(a) An initial report does not comply with this section unless the report:
2074
(i) includes the information required under Subsection (2)(c);
2075
(ii) subject to Subsection (5)(c), demonstrates to the division that the specified county
2076
made plans to implement three or more moderate income housing strategies; and
2077
(iii) is in a form approved by the division.
2078
(b) A subsequent progress report does not comply with this section unless the report:
2079
(i) subject to Subsection (5)(c), demonstrates to the division that the specified county
2080
made plans to implement three or more moderate income housing strategies;
2081
(ii) is in a form approved by the division; and
2082
(iii) provides sufficient information for the division to:
2083
(A) assess the specified county's progress in implementing the moderate income
2084
housing strategies;
2085
(B) monitor compliance with the specified county's implementation plan;
2086
(C) identify a clear correlation between the specified county's land use decisions
2087
and efforts to implement the moderate income housing strategies;
2088
(D) identify how the market has responded to the specified county's selected
2089
moderate income housing strategies; and
2090
(E) identify any barriers encountered by the specified county in implementing the
2091
selected moderate income housing strategies.
2092
(c)(i) This Subsection (5)(c) applies to a specified county that has created a small
2093
public transit district, as defined in Section 17B-2a-802, on or before January 1,
2094
2022.
2095
(ii) In addition to the requirements of Subsections (5)(a) and (b), a report for a
2096
specified county described in Subsection (5)(c)(i) does not comply with this
2097
section unless the report demonstrates to the division that the specified county:
2098
(A) made plans to implement the moderate income housing strategy described in
2099
Subsection 17-27a-403(2)(b)(ii)(Q); and
2100
(B) is in compliance with Subsection 63N-3-603(8).
2101
(6)(a) A specified county qualifies for priority consideration under this Subsection (6) if
2102
the specified county's report:
2103
(i) complies with this section; and
2104
(ii) demonstrates to the division that the specified county made plans to implement
- 62 - 02-11 15:02 S.B. 262
2105
five or more moderate income housing strategies.
2106
(b) The Transportation Commission may, in accordance with Subsection 72-1-304(3)(c),
2107
give priority consideration to transportation projects located within the
2108
unincorporated areas of a specified county described in Subsection (6)(a) until the
2109
Department of Transportation receives notice from the division under Subsection
2110
(6)(e).
2111
(c) Upon determining that a specified county qualifies for priority consideration under
2112
this Subsection (6), the division shall send a notice of prioritization to the legislative
2113
body of the specified county and the Department of Transportation.
2114
(d) The notice described in Subsection (6)(c) shall:
2115
(i) name the specified county that qualifies for priority consideration;
2116
(ii) describe the funds or projects for which the specified county qualifies to receive
2117
priority consideration; and
2118
(iii) state the basis for the division's determination that the specified county qualifies
2119
for priority consideration.
2120
(e) The division shall notify the legislative body of a specified county and the
2121
Department of Transportation in writing if the division determines that the specified
2122
county no longer qualifies for priority consideration under this Subsection (6).
2123
(7)(a) If the division, after reviewing a specified county's report, determines that the
2124
report does not comply with this section, the division shall send a notice of
2125
noncompliance to the legislative body of the specified county.
2126
(b) A specified county that receives a notice of noncompliance may:
2127
(i) cure each deficiency in the report within 90 days after the day on which the notice
2128
of noncompliance is sent; or
2129
(ii) request an appeal of the division's determination of noncompliance within 10
2130
days after the day on which the notice of noncompliance is sent.
2131
(c) The notice described in Subsection (7)(a) shall:
2132
(i) describe each deficiency in the report and the actions needed to cure each
2133
deficiency;
2134
(ii) state that the specified county has an opportunity to:
2135
(A) submit to the division a corrected report that cures each deficiency in the
2136
report within 90 days after the day on which the notice of noncompliance is
2137
sent; or
2138
(B) submit to the division a request for an appeal of the division's determination of
- 63 - S.B. 262 02-11 15:02
2139
noncompliance within 10 days after the day on which the notice of
2140
noncompliance is sent; and
2141
(iii) state that failure to take action under Subsection (7)(c)(ii) will result in the
2142
specified county's ineligibility for funds and fees owed under Subsection (9).
2143
(d) For purposes of curing the deficiencies in a report under this Subsection (7), if the
2144
action needed to cure the deficiency as described by the division requires the
2145
specified county to make a legislative change, the specified county may cure the
2146
deficiency by making that legislative change within the 90-day cure period.
2147
(e)(i) If a specified county submits to the division a corrected report in accordance
2148
with Subsection (7)(b)(i), and the division determines that the corrected report
2149
does not comply with this section, the division shall send a second notice of
2150
noncompliance to the legislative body of the specified county.
2151
(ii) A specified county that receives a second notice of noncompliance may request
2152
an appeal of the division's determination of noncompliance within 10 days after
2153
the day on which the second notice of noncompliance is sent.
2154
(iii) The notice described in Subsection (7)(e)(i) shall:
2155
(A) state that the specified county has an opportunity to submit to the division a
2156
request for an appeal of the division's determination of noncompliance within
2157
10 days after the day on which the second notice of noncompliance is sent; and
2158
(B) state that failure to take action under Subsection (7)(e)(iii)(A) will result in the
2159
specified county's ineligibility for funds under Subsection (9).
2160
(8)(a) A specified county that receives a notice of noncompliance under Subsection
2161
(7)(a) or (7)(e)(i) may request an appeal of the division's determination of
2162
noncompliance within 10 days after the day on which the notice of noncompliance is
2163
sent.
2164
(b) Within 90 days after the day on which the division receives a request for an appeal,
2165
an appeal board consisting of the following three members shall review and issue a
2166
written decision on the appeal:
2167
(i) one individual appointed by the Utah Association of Counties;
2168
(ii) one individual appointed by the Utah Homebuilders Association; and
2169
(iii) one individual appointed by the presiding member of the association of
2170
governments, established pursuant to an interlocal agreement under Title 11,
2171
Chapter 13, Interlocal Cooperation Act, of which the specified county is a member.
2172
(c) The written decision of the appeal board shall either uphold or reverse the division's
- 64 - 02-11 15:02 S.B. 262
2173
determination of noncompliance.
2174
(d) The appeal board's written decision on the appeal is final.
2175
(9)(a) A specified county is ineligible for funds and owes a fee under this Subsection (9)
2176
if:
2177
(i) the specified county fails to submit a report to the division;
2178
(ii) after submitting a report to the division, the division determines that the report
2179
does not comply with this section and the specified county fails to:
2180
(A) cure each deficiency in the report within 90 days after the day on which the
2181
notice of noncompliance is sent; or
2182
(B) request an appeal of the division's determination of noncompliance within 10
2183
days after the day on which the notice of noncompliance is sent;
2184
(iii) after submitting to the division a corrected report to cure the deficiencies in a
2185
previously submitted report, the division determines that the corrected report does
2186
not comply with this section and the specified county fails to request an appeal of
2187
the division's determination of noncompliance within 10 days after the day on
2188
which the second notice of noncompliance is sent; or
2189
(iv) after submitting a request for an appeal under Subsection (8), the appeal board
2190
issues a written decision upholding the division's determination of noncompliance.
2191
(b) The following apply to a specified county described in Subsection (9)(a) until the
2192
division provides notice under Subsection (9)(e):
2193
(i) the executive director of the Department of Transportation may not program funds
2194
from the Transportation Investment Fund of 2005, including the Transit
2195
Transportation Investment Fund, to projects located within the unincorporated
2196
areas of the specified county in accordance with Subsection 72-2-124(6);
2197
(ii) beginning with the report submitted in 2024, the specified county shall pay a fee
2198
to the Olene Walker Housing Loan Fund in the amount of $250 per day that the
2199
specified county:
2200
(A) fails to submit the report to the division in accordance with this section,
2201
beginning the day after the day on which the report was due; or
2202
(B) fails to cure the deficiencies in the report, beginning the day after the day by
2203
which the cure was required to occur as described in the notice of
2204
noncompliance under Subsection (7); and
2205
(iii) beginning with the report submitted in 2025, the specified county shall pay a fee
2206
to the Olene Walker Housing Loan Fund in the amount of $500 per day that the
- 65 - S.B. 262 02-11 15:02
2207
specified county, for a consecutive year:
2208
(A) fails to submit the report to the division in accordance with this section,
2209
beginning the day after the day on which the report was due; or
2210
(B) fails to cure the deficiencies in the report, beginning the day after the day by
2211
which the cure was required to occur as described in the notice of
2212
noncompliance under Subsection (7).
2213
(c) Upon determining that a specified county is ineligible for funds under this
2214
Subsection (9), and is required to pay a fee under Subsection (9)(b), if applicable, the
2215
division shall send a notice of ineligibility to the legislative body of the specified
2216
county, the Department of Transportation, the State Tax Commission, and the
2217
Governor's Office of Planning and Budget.
2218
(d) The notice described in Subsection (9)(c) shall:
2219
(i) name the specified county that is ineligible for funds;
2220
(ii) describe the funds for which the specified county is ineligible to receive;
2221
(iii) describe the fee the specified county is required to pay under Subsection (9)(b),
2222
if applicable; and
2223
(iv) state the basis for the division's determination that the specified county is
2224
ineligible for funds.
2225
(e) The division shall notify the legislative body of a specified county and the
2226
Department of Transportation in writing if the division determines that the provisions
2227
of this Subsection (9) no longer apply to the specified county.
2228
(f) The division may not determine that a specified county that is required to pay a fee
2229
under Subsection (9)(b) is in compliance with the reporting requirements of this
2230
section until the specified county pays all outstanding fees required under Subsection
2231
(9)(b) to the Olene Walker Housing Loan Fund, created under Title 35A, Chapter 8,
2232
Part 5, Olene Walker Housing Loan Fund.
2233
(10) In a civil action seeking enforcement or claiming a violation of this section or of
2234
Subsection 17-27a-404(5)(c), a plaintiff may not recover damages but may be awarded
2235
only injunctive or other equitable relief.
2236
Section 13. Section 17-27a-408.1 is enacted to read:
2237
17-27a-408.1 . Affordable housing density.
2238
(1) As used in this section:
2239
(a) "Affordable housing density" means the same as that term is defined in Section
2240
10-9a-408.1.
- 66 - 02-11 15:02 S.B. 262
2241
(b) "Moderate income housing price point" means the same as that term is defined in
2242
Section 10-9a-408.1.
2243
(2) Beginning January 1, 2027, a specified county shall include the following information
2244
in the specified county's moderate income housing report:
2245
(a) whether the specified county has implemented a density overlay, as described in
2246
Section 17-27a-403.1;
2247
(b) the amount of undeveloped land within the specified county that could achieve
2248
affordable housing density, including:
2249
(i) information on housing units that are entitled or approved but not yet developed
2250
on the undeveloped land within the specified county, if applicable; and
2251
(ii) the barriers, if any, to achieving affordable housing density on the undeveloped
2252
land within the specified county;
2253
(c) the percentage of area zoned residential within the specified county that has achieved
2254
affordable housing density;
2255
(d) a five-year projection for the percentage of area zoned residential within the
2256
specified county that will achieve affordable housing density; and
2257
(e) data to support the conclusions described in Subsections (2)(c) and (d).
2258
Section 14. Section 17-27a-531 is amended to read:
2259
17-27a-531 . Moderate income housing.
2260
(1) A county may only require the development of a certain number of moderate income
2261
housing units as a condition of approval of a land use application if:
2262
(a) the county and the applicant enter into a written agreement regarding the number of
2263
moderate income housing units; [or]
2264
(b) the county provides incentives for an applicant who agrees to include moderate
2265
income housing units in a development[.] ; or
2266
(c) the applicant seeks to develop in an unincorporated zone subject to a density overlay,
2267
as described in Section 17-27a-403.1.
2268
(2)(a) If an applicant does not agree to participate in the development of moderate
2269
income housing units under Subsection (1)(a) or (b), a county may not take into
2270
consideration the applicant's decision in the county's determination of whether to
2271
approve or deny a land use application.
2272
(b) If an applicant does not agree to participate in the development of moderate income
2273
housing units under Subsection (1)(c), a county may take into consideration the
2274
applicant's decision in the county's determination of whether to approve or deny a
- 67 - S.B. 262 02-11 15:02
2275
land use application.
2276
(3) Notwithstanding Subsections (1) and (2), a county of the third class, which has a ski
2277
resort located within the unincorporated area of the county, may require the
2278
development of a certain number of moderate income housing units as a condition of
2279
approval of a land use application if the requirement is in accordance with an ordinance
2280
enacted by the county before January 1, 2022.
2281
Section 15. Section 51-12-101 is amended to read:
2282
51-12-101 . Definitions.
2283
As used in this chapter:
2284
(1) "Attainable home" means a residence that costs the purchaser no more than the amount
2285
a qualifying residential unit may be purchased in accordance with [Subsection
2286
63H-8-501(6)(e)] Section 63H-8-501 at the time the state treasurer deposits with a
2287
qualified depository.
2288
(2) "Fund" means the Transportation Infrastructure General Fund Support Subfund created
2289
in Section 72-2-134.
2290
(3) "Political subdivision" means:
2291
(a) the municipality in which the attainable home is located; or
2292
(b) the county, if the attainable home is located in an unincorporated portion of the
2293
county.
2294
(4) "Qualified depository" means the same as that term is defined in Section 51-7-3.
2295
(5)(a) "Qualified project" means a new construction housing development project in the
2296
state for which the developer:
2297
(i) commits to:
2298
(A) offering for sale no fewer than 60% of the total units within the project as
2299
attainable homes;
2300
(B) including in the deed of sale for an attainable home a restriction, in favor of
2301
the political subdivision, that the attainable home be owner occupied for no
2302
fewer than five years; and
2303
(C) having a plan to provide information to potential buyers of attainable homes
2304
about the First-Time Homebuyer Assistance Program created in Section
2305
63H-8-502; and
2306
(ii) executes a valid agreement with the political subdivision to develop housing
2307
meeting the requirements of Subsections (5)(a)(i)(A) and (B).
2308
(b) "Qualified project" includes infrastructure within the housing development project.
- 68 - 02-11 15:02 S.B. 262
2309
Section 16. Section 63H-8-501 is amended to read:
2310
63H-8-501 . Definitions.
2311
As used in this part:
2312
(1) "Existing construction" means a residential unit that:
2313
(a) has been completed for over one year and was previously occupied; or
2314
(b) has been completed for less than one year and was previously occupied.
2315
[(1)] (2)(a) "First-time homebuyer" means an individual who satisfies:
2316
(i) the three-year requirement described in Section 143(d) of the Internal Revenue
2317
Code of 1986, as amended, and any corresponding federal regulations; and
2318
(ii) requirements made by the corporation by rule, as described in Section 63H-8-502.
2319
(b) "First-time homebuyer" includes a single parent, as defined by the corporation by
2320
rule made as described in Section 63H-8-502, who would meet the three-year
2321
requirement described in Subsection [(1)(a)(i) ] (2)(a)(i) but for a present ownership
2322
interest in a principal residence in which the single parent:
2323
(i) had a present ownership interest with the single parent's former spouse during the
2324
three-year period;
2325
(ii) resided while married during the three-year period; and
2326
(iii) no longer:
2327
(A) has a present ownership interest; or
2328
(B) resides.
2329
[(2)] (3) "Home equity amount" means the difference between:
2330
(a)(i) in the case of a sale, the sales price for which the qualifying residential unit is
2331
sold by the recipient in a bona fide sale to a third party with no right to repurchase
2332
less an amount up to 1% of the sales price used for seller-paid closing costs; or
2333
(ii) in the case of a refinance, the current appraised value of the qualifying residential
2334
unit; and
2335
(b) the total payoff amount of any qualifying mortgage loan that was used to finance the
2336
purchase of the qualifying residential unit.
2337
[(3)] (4) "Program" means the First-Time Homebuyer Assistance Program created in
2338
Section 63H-8-502.
2339
[(4)] (5) "Program funds" means money appropriated for the program.
2340
[(5)] (6) "Qualifying mortgage loan" means a mortgage loan that:
2341
(a) is purchased and serviced by the corporation; [and] or
2342
(b) [is subject to a document that is recorded in the office of the county recorder of the
- 69 - S.B. 262 02-11 15:02
2343
county in which the residential unit is located.] is originated, purchased, or serviced
2344
by a private financial institution or sold to a government-sponsored enterprise, if:
2345
(i) the loan conforms to the borrower's income, property eligibility, and credit
2346
standards;
2347
(ii) the loan is secured by a recorded deed of trust or other instrument securing a
2348
mortgage loan and constituting a lien on real property in the county in which the
2349
home is located; and
2350
(iii) the loan is an amortizing first mortgage loan.
2351
[(6)] (7) "Qualifying residential unit" means a residential unit that:
2352
(a) is located in the state;
2353
(b)(i) is new construction or newly constructed but not yet inhabited; or
2354
(ii) is existing construction;
2355
(c) is financed by a qualifying mortgage loan;
2356
(d) is owner-occupied within 60 days of purchase, or in the case of a two-unit dwelling,
2357
at least one unit is owner-occupied within 60 days of purchase; and
2358
(e) is purchased for an amount that does not exceed:
2359
(i) $450,000; or
2360
(ii) if applicable, the maximum purchase price established by the corporation under [
2361
Subsection 63H-8-502(6)] Section 63H-8-502.
2362
[(7)] (8) "Recipient" means a first-time homebuyer who receives program funds.
2363
[(8)] (9)(a) "Residential unit" means a house, condominium, townhome, or similar
2364
residential structure that serves as a one-unit dwelling or forms part of a two-unit
2365
dwelling.
2366
(b) "Residential unit" includes a manufactured home or modular home that is attached to
2367
a permanent foundation.
2368
(10)(a) "Subordinate shared appreciation mortgage loan" means a mortgage loan for
2369
which a borrower gives the borrower's mortgage lender a share of the appreciation
2370
interest in the residential unit in exchange for a lower interest rate on the qualified
2371
mortgage loan upon the sale of the qualified residential unit.
2372
(b) "Subordinate shared appreciation mortgage loan" includes a mortgage loan that:
2373
(i) has flexible repayment terms in accordance with applicable state and federal laws;
2374
(ii) is non-interest bearing and has no set monthly payment obligation;
2375
(iii) does not have a combined loan-to-value that exceeds 100%;
2376
(iv) does not impose a prepayment fee or penalty; and
- 70 - 02-11 15:02 S.B. 262
2377
(v) is subordinate to a first mortgage loan.
2378
Section 17. Section 63H-8-502 is amended to read:
2379
63H-8-502 . First-Time Homebuyer Assistance Program.
2380
(1) There is created the First-Time Homebuyer Assistance Program administered by the
2381
corporation.
2382
(2) Subject to appropriations from the Legislature, the corporation shall distribute program
2383
funds to:
2384
(a) first-time homebuyers to provide support for the purchase of qualifying residential
2385
units; and
2386
(b) reimburse the corporation for a distribution of funds under Subsection (2)(a) that
2387
took place on or after July 1, 2023.
2388
(3) The maximum amount of program funds that a first-time homebuyer may receive under
2389
the program is $20,000.
2390
(4)(a) A recipient may use program funds to pay for:
2391
(i) the down payment on a qualifying residential unit;
2392
(ii) closing costs associated with the purchase of a qualifying residential unit;
2393
(iii) a permanent reduction in the advertised par interest rate on a qualifying mortgage
2394
loan that is used to finance a qualifying residential unit; or
2395
(iv) any combination of Subsections (4)(a)(i), (ii), and (iii).
2396
(b) The corporation shall direct the disbursement of program funds for a purpose
2397
authorized in Subsection (4)(a).
2398
(c) A recipient may not receive a payout or distribution of program funds upon closing.
2399
(5) The builder or developer of a qualifying residential unit may not increase the price of
2400
the qualifying residential unit on the basis of program funds being used towards the
2401
purchase of that qualifying residential unit.
2402
(6)(a) In accordance with rules made by the corporation under Subsection (9), the
2403
corporation may adjust the maximum purchase price of a qualifying residential unit
2404
for which a first-time homebuyer qualifies to receive program funds in order to
2405
reflect current market conditions.
2406
(b) In connection with an adjustment made under Subsection (6)(a), the corporation may
2407
establish one or more maximum purchase prices corresponding by residential unit
2408
type, geographic location, or any other factor the corporation considers relevant.
2409
(c) The corporation may adjust a maximum purchase price under this Subsection (6) no
2410
more frequently than once each calendar year.
- 71 - S.B. 262 02-11 15:02
2411
(7)(a) Except as provided in Subsection (7)(b), if the recipient sells the qualifying
2412
residential unit or refinances the qualifying mortgage loan that was used to finance
2413
the purchase of the qualifying residential unit before the end of the original term of
2414
the qualifying mortgage loan, the recipient shall repay to the corporation an amount
2415
equal to the lesser of:
2416
(i) the amount of program funds the recipient received; or
2417
(ii) 50% of the recipient's home equity amount.
2418
(b) Subsection (7)(a) does not apply to a qualifying mortgage loan that is refinanced
2419
with a new qualifying mortgage loan if any subordinate qualifying mortgage loan, or
2420
loan from program funds used on the purchase of the qualifying residential unit, is
2421
resubordinated only to the new qualifying mortgage loan.
2422
(8) Any funds repaid to the corporation under Subsection (7) shall be used for program
2423
distributions.
2424
(9) The corporation shall make rules[ governing the application form, process, and criteria
2425
the corporation will use to distribute program funds to first-time homebuyers], in
2426
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act. that:
2427
(a) govern the application form, process, and criteria the corporation will use to
2428
distribute program funds to a first-time homebuyer; and
2429
(b) govern the procedures, qualifications, and program requirements to evaluate and
2430
approve a participating private financial institution that offers qualifying mortgage
2431
loans and subordinate shared appreciation mortgage loans for a first-time home
2432
buyer, including ensuring that:
2433
(i) the borrower's repayment obligation does not exceed the amount borrowed plus a
2434
pro rata share of the qualifying property's home price appreciation; and
2435
(ii) the amount borrowed does not exceed the loan-to-value ratio based upon the
2436
appraised value of the qualifying residential unit at origination.
2437
(10)(a) A recipient may use the funds received from a subordinate shared appreciation
2438
mortgage loan for the same purposes described in Subsection (4).
2439
(b) A subordinate shared appreciation loan may not exceed, including costs and fees,
2440
$150,000.
2441
[(10)] (11) The corporation may use up to 5% of program funds for administration.
2442
[(11)] (12) The corporation shall report annually to the Social Services Appropriations
2443
Subcommittee on disbursements from the program and any adjustments made to the
2444
maximum purchase price or maximum purchase prices of a qualifying residential unit
- 72 - 02-11 15:02 S.B. 262
2445
under Subsection (6).
2446
Section 18. Effective Date.
2447
This bill takes effect on May 7, 2025.
- 73 -