Bill Summary – FastDemocracy

Enrolled Copy                                                                           H.B. 82
                      SINGLE-FAMILY HOUSING MODIFICATIONS
                                      2021 GENERAL SESSION
                                          STATE OF UTAH
                                Chief Sponsor: Raymond P. Ward
                                Senate Sponsor: Jacob L. Anderegg
 6
 LONG TITLE
 General Description:
        This bill modifies provisions related to single-family housing.
 Highlighted Provisions:
        This bill:
        < modifies and defines terms applicable to municipal and county land use
 development and management;
        < allows a municipality or county to punish an individual who lists or offers a certain
 licensed or permitted accessory dwelling unit as a short-term rental;
        < allows municipalities and counties to require specified physical changes to certain
 accessory dwelling units;
        < in any single-family residential land use zone:
            C   requires municipalities and counties to classify certain accessory dwelling units
 as a permitted land use; and
            C   prohibits municipalities and counties from establishing restrictions or
 requirements for certain accessory dwelling units with limited exceptions;
        < allows a municipality or county to hold a lien against real property containing
 certain accessory dwelling units in certain circumstances;
        < provides for statewide amendments to the International Residential Code related to
 accessory dwelling units;
        < requires the executive director of the Olene Walker Housing Loan Fund to establish
 a two-year pilot program to provide loan guarantees for certain loans related to
 accessory dwelling units;
       H.B. 82                                                                   Enrolled Copy
        < prevents a homeowners association from prohibiting the construction or rental of
 certain accessory dwelling units; and
        < makes technical and conforming changes.
 Money Appropriated in this Bill:
        None
 Other Special Clauses:
        This bill provides a special effective date.
 Utah Code Sections Affected:
 AMENDS:
        10-8-85.4, as enacted by Laws of Utah 2017, Chapter 335
        10-9a-505.5, as last amended by Laws of Utah 2012, Chapter 172
        10-9a-511.5, as enacted by Laws of Utah 2015, Chapter 205
        15A-3-202, as last amended by Laws of Utah 2020, Chapter 441
        15A-3-204, as last amended by Laws of Utah 2016, Chapter 249
        15A-3-206, as last amended by Laws of Utah 2018, Chapter 186
        17-27a-505.5, as last amended by Laws of Utah 2015, Chapter 465
        17-27a-510.5, as enacted by Laws of Utah 2015, Chapter 205
        17-50-338, as enacted by Laws of Utah 2017, Chapter 335
        35A-8-505, as last amended by Laws of Utah 2020, Chapter 241
        57-8a-209, as last amended by Laws of Utah 2018, Chapter 395
        57-8a-218, as last amended by Laws of Utah 2017, Chapter 131
 ENACTS:
        10-9a-530, Utah Code Annotated 1953
        17-27a-526, Utah Code Annotated 1953
        35A-8-504.5, Utah Code Annotated 1953
55
 Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 10-8-85.4 is amended to read:
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       Enrolled Copy                                                                             H.B. 82
        10-8-85.4. Ordinances regarding short-term rentals -- Prohibition on ordinances
 restricting speech on short-term rental websites.
        (1) As used in this section:
        (a) "Internal accessory dwelling unit" means the same as that term is defined in Section
 10-9a-511.5.
        [(a)] (b) "Residential unit" means a residential structure or any portion of a residential
 structure that is occupied as a residence.
        [(b)] (c) "Short-term rental" means a residential unit or any portion of a residential unit
 that the owner of record or the lessee of the residential unit offers for occupancy for fewer than
 30 consecutive days.
        [(c)] (d) "Short-term rental website" means a website that:
        (i) allows a person to offer a short-term rental to one or more prospective renters; and
        (ii) facilitates the renting of, and payment for, a short-term rental.
        (2) Notwithstanding Section 10-9a-501 or Subsection 10-9a-503(1), a legislative body
 may not:
        (a) enact or enforce an ordinance that prohibits an individual from listing or offering a
 short-term rental on a short-term rental website; or
        (b) use an ordinance that prohibits the act of renting a short-term rental to fine, charge,
 prosecute, or otherwise punish an individual solely for the act of listing or offering a short-term
 rental on a short-term rental website.
        (3) Subsection (2) does not apply to an individual who lists or offers an internal
 accessory dwelling unit as a short-term rental on a short-term rental website if the municipality
 records a notice for the internal accessory dwelling unit under Subsection 10-9a-530(6).
        Section 2. Section 10-9a-505.5 is amended to read:
        10-9a-505.5. Limit on single family designation.
        (1) As used in this section, "single-family limit" means the number of [unrelated]
 individuals allowed to occupy each residential unit that is recognized by a land use authority in
 a zone permitting occupancy by a single family.
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        H.B. 82                                                                           Enrolled Copy
        (2) A municipality may not adopt a single-family limit that is less than:
        (a) three, if the municipality has within its boundary:
        (i) a state university; or
        (ii) a private university with a student population of at least 20,000; or
        (b) four, for each other municipality.
        Section 3. Section 10-9a-511.5 is amended to read:
        10-9a-511.5. Changes to dwellings -- Egress windows.
        (1) [For purposes of] As used in this section[, "rental]:
        (a) "Internal accessory dwelling unit" means an accessory dwelling unit created:
        (i) within a primary dwelling;
        (ii) within the footprint of the primary dwelling described in Subsection (1)(a)(i) at the
 time the internal accessory dwelling unit is created; and
        (iii) for the purpose of offering a long-term rental of 30 consecutive days or longer.
        (b) "Primary dwelling" means a single-family dwelling that:
        (i) is detached; and
        (ii) is occupied as the primary residence of the owner of record.
        (c) "Rental dwelling" means the same as that term is defined in Section 10-8-85.5.
        (2) A municipal ordinance adopted under Section 10-1-203.5 may not:
        (a) require physical changes in a structure with a legal nonconforming rental dwelling
 use unless the change is for:
        (i) the reasonable installation of:
        (A) a smoke detector that is plugged in or battery operated;
        (B) a ground fault circuit interrupter protected outlet on existing wiring;
        (C) street addressing;
        (D) except as provided in Subsection (3), an egress bedroom window if the existing
 bedroom window is smaller than that required by current State Construction Code;
        (E) an electrical system or a plumbing system, if the existing system is not functioning
 or is unsafe as determined by an independent electrical or plumbing professional who is
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       Enrolled Copy                                                                              H.B. 82
 licensed in accordance with Title 58, Occupations and Professions;
        (F) hand or guard rails; or
        (G) occupancy separation doors as required by the International Residential Code; or
        (ii) the abatement of a structure; or
        (b) be enforced to terminate a legal nonconforming rental dwelling use.
        (3) (a) A municipality may not require physical changes to install an egress or
 emergency escape window in an existing bedroom that complied with the State Construction
 Code in effect at the time the bedroom was finished if:
        [(a)] (i) the dwelling is an owner-occupied dwelling or a rental dwelling that is:
        [(i)] (A) a detached one-, two-, three-, or four-family dwelling; or
        [(ii)] (B) a town home that is not more than three stories above grade with a separate
 means of egress; and
        [(b) (i)] (ii) (A) the window in the existing bedroom is smaller than that required by
 current State Construction Code; and
        [(ii)] (B) the change would compromise the structural integrity of the structure or could
 not be completed in accordance with current State Construction Code, including set-back and
 window well requirements.
        (b) Subsection (3)(a) does not apply to an internal accessory dwelling unit.
        (4) Nothing in this section prohibits a municipality from:
        (a) regulating the style of window that is required or allowed in a bedroom;
        (b) requiring that a window in an existing bedroom be fully openable if the openable
 area is less than required by current State Construction Code; or
        (c) requiring that an existing window not be reduced in size if the openable area is
 smaller than required by current State Construction Code.
        Section 4. Section 10-9a-530 is enacted to read:
        10-9a-530. Internal accessory dwelling units.
        (1) As used in this section:
        (a) "Internal accessory dwelling unit" means an accessory dwelling unit created:
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        H.B. 82                                                                          Enrolled Copy
         (i) within a primary dwelling;
         (ii) within the footprint of the primary dwelling described in Subsection (1)(a)(i) at the
 time the internal accessory dwelling unit is created; and
         (iii) for the purpose of offering a long-term rental of 30 consecutive days or longer.
         (b) "Primary dwelling" means a single-family dwelling that:
         (i) is detached; and
         (ii) is occupied as the primary residence of the owner of record.
         (2) In any area zoned primarily for residential use:
         (a) the use of an internal accessory dwelling unit is a permitted use; and
         (b) except as provided in Subsections (3) and (4), a municipality may not establish any
 restrictions or requirements for the construction or use of one internal accessory dwelling unit
 within a primary dwelling, including a restriction or requirement governing:
         (i) the size of the internal accessory dwelling unit in relation to the primary dwelling;
         (ii) total lot size; or
         (iii) street frontage.
         (3) An internal accessory dwelling unit shall comply with all applicable building,
 health, and fire codes.
         (4) A municipality may:
         (a) prohibit the installation of a separate utility meter for an internal accessory dwelling
 unit;
         (b) require that an internal accessory dwelling unit be designed in a manner that does
 not change the appearance of the primary dwelling as a single-family dwelling;
         (c) require a primary dwelling:
         (i) to include one additional on-site parking space for an internal accessory dwelling
 unit, regardless of whether the primary dwelling is existing or new construction; and
         (ii) to replace any parking spaces contained within a garage or carport if an internal
 accessory dwelling unit is created within the garage or carport;
         (d) prohibit the creation of an internal accessory dwelling unit within a mobile home as
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        Enrolled Copy                                                                                  H.B. 82
 defined in Section 57-16-3;
            (e) require the owner of a primary dwelling to obtain a permit or license for renting an
 internal accessory dwelling unit;
            (f) prohibit the creation of an internal accessory dwelling unit within a zoning district
 covering an area that is equivalent to:
            (i) 25% or less of the total area in the municipality that is zoned primarily for
 residential use; or
            (ii) 67% or less of the total area in the municipality that is zoned primarily for
 residential use, if the main campus of a state or private university with a student population of
 10,000 or more is located within the municipality;
            (g) prohibit the creation of an internal accessory dwelling unit if the primary dwelling
 is served by a failing septic tank;
            (h) prohibit the creation of an internal accessory dwelling unit if the lot containing the
 primary dwelling is 6,000 square feet or less in size;
            (i) prohibit the rental or offering the rental of an internal accessory dwelling unit for a
 period of less than 30 consecutive days;
            (j) prohibit the rental of an internal accessory dwelling unit if the internal accessory
 dwelling unit is located in a dwelling that is not occupied as the owner's primary residence;
            (k) hold a lien against a property that contains an internal accessory dwelling unit in
 accordance with Subsection (5); and
            (l) record a notice for an internal accessory dwelling unit in accordance with
 Subsection (6).
            (5) (a) In addition to any other legal or equitable remedies available to a municipality, a
 municipality may hold a lien against a property that contains an internal accessory dwelling
 unit if:
            (i) the owner of the property violates any of the provisions of this section or any
 ordinance adopted under Subsection (4);
            (ii) the municipality provides a written notice of violation in accordance with
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        H.B. 82                                                                           Enrolled Copy
 Subsection (5)(b);
         (iii) the municipality holds a hearing and determines that the violation has occurred in
 accordance with Subsection (5)(d), if the owner files a written objection in accordance with
 Subsection (5)(b)(iv);
         (iv) the owner fails to cure the violation within the time period prescribed in the
 written notice of violation under Subsection (5)(b);
         (v) the municipality provides a written notice of lien in accordance with Subsection
 (5)(c); and
         (vi) the municipality records a copy of the written notice of lien described in
 Subsection (5)(a)(iv) with the county recorder of the county in which the property is located.
         (b) The written notice of violation shall:
         (i) describe the specific violation;
         (ii) provide the owner of the internal accessory dwelling unit a reasonable opportunity
 to cure the violation that is:
         (A) no less than 14 days after the day on which the municipality sends the written
 notice of violation, if the violation results from the owner renting or offering to rent the internal
 accessory dwelling unit for a period of less than 30 consecutive days; or
         (B) no less than 30 days after the day on which the municipality sends the written
 notice of violation, for any other violation;
         (iii) state that if the owner of the property fails to cure the violation within the time
 period described in Subsection (5)(b)(ii), the municipality may hold a lien against the property
 in an amount of up to $100 for each day of violation after the day on which the opportunity to
 cure the violation expires;
         (iv) notify the owner of the property:
         (A) that the owner may file a written objection to the violation within 14 days after the
 day on which the written notice of violation is post-marked or posted on the property; and
         (B) of the name and address of the municipal office where the owner may file the
 written objection;
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        Enrolled Copy                                                                              H.B. 82
        (v) be mailed to:
        (A) the property's owner of record; and
        (B) any other individual designated to receive notice in the owner's license or permit
 records; and
        (vi) be posted on the property.
        (c) The written notice of lien shall:
        (i) comply with the requirements of Section 38-12-102;
        (ii) state that the property is subject to a lien;
        (iii) specify the lien amount, in an amount of up to $100 for each day of violation after
 the day on which the opportunity to cure the violation expires;
        (iv) be mailed to:
        (A) the property's owner of record; and
        (B) any other individual designated to receive notice in the owner's license or permit
 records; and
        (v) be posted on the property.
        (d) (i) If an owner of property files a written objection in accordance with Subsection
 (5)(b)(iv), the municipality shall:
        (A) hold a hearing in accordance with Title 52, Chapter 4, Open and Public Meetings<