Bill Summary – FastDemocracy

Enrolled Copy                                                                         S.B. 174
                LOCAL LAND USE AND DEVELOPMENT REVISIONS
                                        2023 GENERAL SESSION
                                           STATE OF UTAH
                               Chief Sponsor: Lincoln Fillmore
                               House Sponsor: Stephen L. Whyte
 6
 LONG TITLE
 General Description:
        This bill amends provisions related to local land use and development.
 Highlighted Provisions:
        This bill:
        < amends the penalties for noncompliance with the requirements applicable to a
 political subdivision's moderate income housing report;
        < defines the circumstances under which a garage may be included in the definition of
 an internal accessory dwelling unit;
        < amends a political subdivision's authority with respect to restrictions and
 requirements for internal accessory dwelling units;
        < enacts a new process for subdivision review and approval; and
        < makes technical changes.
 Money Appropriated in this Bill:
        None
 Other Special Clauses:
        None
 Utah Code Sections Affected:
 AMENDS:
        10-9a-408, as last amended by Laws of Utah 2022, Chapter 406
        10-9a-530, as enacted by Laws of Utah 2021, Chapter 102
        10-9a-608, as last amended by Laws of Utah 2022, Chapter 355
        17-27a-408, as last amended by Laws of Utah 2022, Chapter 406
       S.B. 174                                                                   Enrolled Copy
        17-27a-526, as enacted by Laws of Utah 2021, Chapter 102
        17-27a-608, as last amended by Laws of Utah 2022, Chapter 355
        63I-2-210, as last amended by Laws of Utah 2022, Chapter 274
        63I-2-217, as last amended by Laws of Utah 2022, Chapter 123
 ENACTS:
        10-9a-604.1, Utah Code Annotated 1953
        10-9a-604.2, Utah Code Annotated 1953
        10-9a-604.9, Utah Code Annotated 1953
        17-27a-604.1, Utah Code Annotated 1953
        17-27a-604.2, Utah Code Annotated 1953
        17-27a-604.9, Utah Code Annotated 1953
41
 Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 10-9a-408 is amended to read:
        10-9a-408. Moderate income housing report -- Contents -- Prioritization for
 funds or projects -- Ineligibility for funds after noncompliance -- Civil actions.
        (1) As used in this section:
        (a) "Division" means the Housing and Community Development Division within the
 Department of Workforce Services.
        (b) "Implementation plan" means the implementation plan adopted as part of the
 moderate income housing element of a specified municipality's general plan as provided in
 Subsection 10-9a-403(2)(c).
        (c) "Moderate income housing report" or "report" means the report described in
 Subsection (2)(a).
        (d) "Moderate income housing strategy" means a strategy described in Subsection
 10-9a-403(2)(b)(iii).
        (e) "Specified municipality" means:
        (i) a city of the first, second, third, or fourth class;
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         (ii) a city of the fifth class with a population of 5,000 or more, if the city is located
 within a county of the first, second, or third class; or
         (iii) a metro township with a population of 5,000 or more.
         (2) (a) Beginning in 2022, on or before October 1 of each calendar year, the legislative
 body of a specified municipality shall annually submit a written moderate income housing
 report to the division.
         (b) The moderate income housing report submitted in 2022 shall include:
         (i) a description of each moderate income housing strategy selected by the specified
 municipality for implementation; and
         (ii) an implementation plan.
         (c) The moderate income housing report submitted in each calendar year after 2022
 shall include:
         (i) the information required under Subsection (2)(b);
         (ii) a description of each action, whether one-time or ongoing, taken by the specified
 municipality during the previous fiscal year to implement the moderate income housing
 strategies selected by the specified municipality for implementation;
         (iii) a description of each land use regulation or land use decision made by the
 specified municipality during the previous fiscal year to implement the moderate income
 housing strategies, including an explanation of how the land use regulation or land use decision
 supports the specified municipality's efforts to implement the moderate income housing
 strategies;
         (iv) a description of any barriers encountered by the specified municipality in the
 previous fiscal year in implementing the moderate income housing strategies;
         (v) information regarding the number of internal and external or detached accessory
 dwelling units located within the specified municipality for which the specified municipality:
         (A) issued a building permit to construct; or
         (B) issued a business license to rent;
         (vi) a description of how the market has responded to the selected moderate income
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        S.B. 174                                                                         Enrolled Copy
 housing strategies, including the number of entitled moderate income housing units or other
 relevant data; and
           (vii) any recommendations on how the state can support the specified municipality in
 implementing the moderate income housing strategies.
           (d) The moderate income housing report shall be in a form:
           (i) approved by the division; and
           (ii) made available by the division on or before July 1 of the year in which the report is
 required.
           (3) Within 90 days after the day on which the division receives a specified
 municipality's moderate income housing report, the division shall:
           (a) post the report on the division's website;
           (b) send a copy of the report to the Department of Transportation, the Governor's
 Office of Planning and Budget, the association of governments in which the specified
 municipality is located, and, if the specified municipality is located within the boundaries of a
 metropolitan planning organization, the appropriate metropolitan planning organization; and
           (c) subject to Subsection (4), review the report to determine compliance with
 Subsection (2).
           (4) (a) The report described in Subsection (2)(b) complies with Subsection (2) if the
 report:
           (i) includes the information required under Subsection (2)(b);
           (ii) demonstrates to the division that the specified municipality made plans to
 implement:
           (A) three or more moderate income housing strategies if the specified municipality
 does not have a fixed guideway public transit station; or
           (B) subject to Subsection 10-9a-403(2)(b)(iv), five or more moderate income housing
 strategies if the specified municipality has a fixed guideway public transit station; and
           (iii) is in a form approved by the division.
           (b) The report described in Subsection (2)(c) complies with Subsection (2) if the
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        Enrolled Copy                                                                              S.B. 174
 report:
           (i) includes the information required under Subsection (2)(c);
           (ii) demonstrates to the division that the specified municipality made plans to
 implement:
           (A) three or more moderate income housing strategies if the specified municipality
 does not have a fixed guideway public transit station; or
           (B) four or more moderate income housing strategies if the specified municipality has a
 fixed guideway public transit station;
           (iii) is in a form approved by the division; and
           (iv) provides sufficient information for the division to:
           (A) assess the specified municipality's progress in implementing the moderate income
 housing strategies;
           (B) monitor compliance with the specified municipality's implementation plan;
           (C) identify a clear correlation between the specified municipality's land use
 regulations and land use decisions and the specified municipality's efforts to implement the
 moderate income housing strategies; and
           (D) identify how the market has responded to the specified municipality's selected
 moderate income housing strategies.
           (5) (a) A specified municipality qualifies for priority consideration under this
 Subsection (5) if the specified municipality's moderate income housing report:
           (i) complies with Subsection (2); and
           (ii) demonstrates to the division that the specified municipality made plans to
 implement:
           (A) five or more moderate income housing strategies if the specified municipality does
 not have a fixed guideway public transit station; or
           (B) six or more moderate income housing strategies if the specified municipality has a
 fixed guideway public transit station.
           [(b) The following apply to a specified municipality described in Subsection (5)(a)
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        S.B. 174                                                                         Enrolled Copy
 during the fiscal year immediately following the fiscal year in which the report is required:]
        [(i) the Transportation Commission may give priority consideration to transportation
 projects located within the boundaries of the specified municipality in accordance with
 Subsection 72-1-304(3)(c); and]
        [(ii) the Governor's Office of Planning and Budget may give priority consideration for
 awarding financial grants to the specified municipality under the COVID-19 Local Assistance
 Matching Grant Program in accordance with Subsection 63J-4-802(6).]
        (b) The Transportation Commission may give priority consideration to transportation
 projects located within the boundaries of a specified municipality described in Subsection
 (5)(a) during the fiscal year immediately following the fiscal year in which the report is
 required, in accordance with Subsection 72-1-304(3)(c).
        (c) Upon determining that a specified municipality qualifies for priority consideration
 under this Subsection (5), the division shall send a notice of prioritization to the legislative
 body of the specified municipality[,] and the Department of Transportation[, and the
 Governor's Office of Planning and Budget].
        (d) The notice described in Subsection (5)(c) shall:
        (i) name the specified municipality that qualifies for priority consideration;
        (ii) describe the funds or projects for which the specified municipality qualifies to
 receive priority consideration;
        (iii) specify the fiscal year during which the specified municipality qualifies for priority
 consideration; and
        (iv) state the basis for the division's determination that the specified municipality
 qualifies for priority consideration.
        (6) (a) If the division, after reviewing a specified municipality's moderate income
 housing report, determines that the report does not comply with Subsection (2), the division
 shall send a notice of noncompliance to the legislative body of the specified municipality.
        (b) The notice described in Subsection (6)(a) shall:
        (i) describe each deficiency in the report and the actions needed to cure each
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 deficiency;
        (ii) state that the specified municipality has an opportunity to cure the deficiencies
 within 90 days after the day on which the notice is sent; and
        (iii) state that failure to cure the deficiencies within 90 days after the day on which the
 notice is sent will result in ineligibility for funds and fees owed under Subsection (7).
        (7) (a) A specified municipality is ineligible for funds and owes a fee under this
 Subsection (7) if the specified municipality:
        (i) fails to submit a moderate income housing report to the division; or
        (ii) fails to cure the deficiencies in the specified municipality's moderate income
 housing report within 90 days after the day on which the division sent to the specified
 municipality a notice of noncompliance under Subsection (6).
        (b) The following apply to a specified municipality described in Subsection (7)(a)
 during the fiscal year immediately following the fiscal year in which the report is required:
        (i) the executive director of the Department of Transportation may not program funds
 from the Transportation Investment Fund of 2005, including the Transit Transportation
 Investment Fund, to projects located within the boundaries of the specified municipality in
 accordance with Subsection 72-2-124(5); [and]
        [(ii) the Governor's Office of Planning and Budget may not award financial grants to
 the specified municipality under the COVID-19 Local Assistance Matching Grant Program in
 accordance with Subsection 63J-4-802(7).]
        (ii) beginning with a report submitted in 2024, the specified municipality shall pay a
 fee to the Olene Walker Housing Loan Fund in the amount of $250 per day that the specified
 municipality:
        (A) fails to submit the report to the division in accordance with this section, beginning
 the day after the day on which the report was due; or
        (B) fails to cure the deficiencies in the report, beginning the day after the day by which
 the cure was required to occur as described in the notice of noncompliance under Subsection
 (6); and
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        S.B. 174                                                                          Enrolled Copy
         (iii) beginning with the report submitted in 2025, the specified municipality shall pay a
 fee to the Olene Walker Housing Loan Fund in the amount of $500 per day that the specified
 municipality, in a consecutive year:
         (A) fails to submit the report to the division in accordance with this section, beginning
 the day after the day on which the report was due; or
         (B) fails to cure the deficiencies in the report, beginning the day after the day by which
 the cure was required to occur as described in the notice of noncompliance under Subsection
 (6).
         (c) Upon determining that a specified municipality is ineligible for funds under this
 Subsection (7), and is required to pay a fee under Subsection (7)(b), if applicable, the division
 shall send a notice of ineligibility to the legislative body of the specified municipality, the
 Department of Transportation, and the Governor's Office of Planning and Budget.
         (d) The notice described in Subsection (7)(c) shall:
         (i) name the specified municipality that is ineligible for funds;
         (ii) describe the funds for which the specified municipality is ineligible to receive;
         (iii) describe the fee the specified municipality is required to pay under Subsection
 (7)(b), if applicable;
         [(iii)] (iv) specify the fiscal year during which the specified municipality is ineligible
 for funds; and
         [(iv)] (v) state the basis for the division's determination that the specified municipality
 is ineligible for funds.
         (e) The division may not determine that a specified municipality that is required to pay
 a fee under Subsection (7)(b) is in compliance with the reporting requirements of this section
 until the specified municipality pays all outstanding fees required under Subsection (7)(b) to
 the Olene Walker Housing Loan Fund, created under Title 35A, Chapter 8, Part 5, Olene
 Walker Housing Loan Fund.
         (8) In a civil action seeking enforcement or claiming a violation of this section or of
 Subsection 10-9a-404(4)(c), a plaintiff may not recover damages but may be awarded only
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 injunctive or other equitable relief.
         Section 2. Section 10-9a-530 is amended 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:
         (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) (i) "Primary dwelling" means a single-family dwelling that:
         [(i)] (A) is detached; and
         [(ii)] (B) is occupied as the primary residence of the owner of record.
         (ii) "Primary dwelling" includ