Municipal Plans for Housing

Utah Code tit. 10, ch. 10-21, pt. 10-21-P2

in effect

Utah Code § 10-21-201 Moderate income housing plan required.

10-21-201. Moderate income housing plan required. (1) A moderate income housing element of a general plan shall include a moderate income housing plan that meets the requirements of this section. (2) A moderate income housing plan: (a) shall provide a realistic opportunity to meet the need for additional moderate income housing within the municipality during the next five years; (b) for a municipality that is not a specified municipality, may include a recommendation to implement three or more of the moderate income housing strategies described in Subsection (3)(a)(iii); (c) for a specified municipality that does not have a fixed guideway public transit station, shall include a recommendation to implement three or more of the moderate income housing strategies described in Subsection (3)(a)(iii) or at least one of the moderate income housing strategies described in Subsections (3)(a)(iii)(X) through (CC); (d) for a specified municipality that has a fixed guideway public transit station, shall include: (i) a recommendation to implement five or more of the moderate income housing strategies described in Subsection (3)(a)(iii), of which one shall be the moderate income housing strategy described in Subsection (3)(a)(iii)(U) and one shall be a moderate income housing strategy described in Subsection (3)(a)(iii)(G) or (H); or (ii) a recommendation to implement the moderate income housing strategy described in Subsection (3)(a)(iii)(U), one of the moderate income housing strategies described in Subsections (3)(a)(iii)(X) through (CC), and one moderate income housing strategy described in Subsection (3)(a)(iii); and (e) for a specified municipality shall include an implementation plan as provided in Subsection (4). (3) (a) In drafting the moderate income housing element, the planning commission: (i) shall consider the Legislature's determination that municipalities shall facilitate a reasonable opportunity for a variety of housing, including moderate income housing: (A) to meet the needs of people of various income levels living, working, or desiring to live or work in the community; and (B) to allow people with various incomes to benefit from and fully participate in all aspects of neighborhood and community life; (ii) for a municipality that is not a specified municipality, may include, and for a specified municipality shall include, an analysis of how the municipality will provide a realistic opportunity for the development of moderate income housing within the next five years; and (iii) for a municipality that is not a specified municipality, may include, and for a specified municipality shall include, a recommendation to implement the required number of any of the following moderate income housing strategies as specified in Subsection (2): (A) rezone for densities necessary to facilitate the production of moderate income housing; (B) demonstrate investment in the rehabilitation or expansion of infrastructure that facilitates the construction of moderate income housing; (C) demonstrate investment in the rehabilitation of existing uninhabitable housing stock into moderate income housing; (D) identify and utilize general fund subsidies or other sources of revenue to waive construction related fees that are otherwise generally imposed by the municipality for the construction or rehabilitation of moderate income housing; (E) create or allow for, and reduce regulations related to, internal or detached accessory dwelling units in residential zones; (F) zone or rezone for higher density or moderate income residential development in commercial or mixed-use zones near major transit investment corridors, commercial centers, or employment centers; (G) amend land use regulations to allow for higher density or new moderate income residential development in commercial or mixed-use zones near major transit investment corridors; (H) amend land use regulations to eliminate or reduce parking requirements for residential development where a resident is less likely to rely on the resident's own vehicle, such as residential development near major transit investment corridors or senior living facilities; (I) amend land use regulations to allow for single room occupancy developments; (J) implement zoning incentives for moderate income units in new developments; (K) preserve existing and new moderate income housing and subsidized units by utilizing a landlord incentive program, providing for deed restricted units through a grant program or establishing a housing loss mitigation fund; (L) reduce, waive, or eliminate impact fees related to moderate income housing; (M) demonstrate creation of, or participation in, a community land trust program for moderate income housing; (N) implement a mortgage assistance program for employees of the municipality, an employer that provides contracted services to the municipality, or any other public employer that operates within the municipality; (O) apply for or partner with an entity that applies for state or federal funds or tax incentives to promote the construction of moderate income housing, an entity that applies for programs offered by the Utah Housing Corporation within the Utah Housing Corporation's funding capacity, an entity that applies for affordable housing programs administered by the Division of Housing and Community Development within the Governor's Office of Economic Development, an entity that applies for affordable housing programs administered by an association of governments established by an interlocal agreement under Title 11, Chapter 13, Interlocal Cooperation Act, an entity that applies for services provided by a public housing authority to preserve and create moderate income housing, or any other entity that applies for programs or services that promote the construction or preservation of moderate income housing; (P) demonstrate utilization of a moderate income housing set aside from a community reinvestment agency, redevelopment agency, or community development and renewal agency to create or subsidize moderate income housing; (Q) eliminate impact fees for any accessory dwelling unit that is not an internal accessory dwelling unit as defined in Section 10-21-101; (R) create a program to transfer development rights for moderate income housing; (S) ratify a joint acquisition agreement with another local political subdivision for the purpose of combining resources to acquire property for moderate income housing; (T) develop a moderate income housing project for residents who are disabled or 55 years old or older; (U) develop and adopt a station area plan in accordance with Section 63N-23-104; (V) create or allow for, and reduce regulations related to, multifamily residential dwellings compatible in scale and form with detached single-family residential dwellings and located in walkable communities within residential or mixed-use zones; (W) demonstrate implementation of any other program or strategy to address the housing needs of residents of the municipality who earn less than 80% of the area median income, including the dedication of a local funding source to moderate income housing or the adoption of a land use ordinance that requires 10% or more of new residential development in a residential zone be dedicated to moderate income housing; (X) create a housing and transit reinvestment zone in accordance with Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone; (Y) create a home ownership promotion zone in accordance with Title 63N, Chapter 23, Part 5, Home Ownership Promotion Zone for Municipalities; (Z) create a first home investment zone in accordance with Title 63N, Chapter 23, Part 7, First Home Investment Zone; (AA) approve a project that receives funding from, or qualifies to receive funding from, the Utah Homes Investment Program created in Title 51, Chapter 12, Utah Homes Investment Program; (BB) adopt or approve a qualifying affordable home ownership density bonus for single-family residential units, as described in Section 10-21-401; and (CC) adopt or approve a qualifying affordable home ownership density bonus for multi-family residential units, as described in Section 10-21-402; and (b) the planning commission shall identify each moderate income housing strategy recommended to the legislative body for implementation by restating the exact language used to describe the strategy in Subsection (3)(a)(iii). (4) (a) In drafting the implementation plan portion of the moderate income housing element as described in Subsection (2)(c), the planning commission shall recommend to the legislative body the establishment of a five-year timeline for implementing each of the moderate income housing strategies selected by the municipality for implementation. (b) The timeline described in Subsection (4)(a) shall: (i) identify specific measures and benchmarks for implementing each moderate income housing strategy selected by the municipality, whether one-time or ongoing; and (ii) provide flexibility for the municipality to make adjustments as needed. Amended by Chapter 393, 2026 General Session

Utah Code § 10-21-202 Moderate income housing report -- Contents -- Prioritization for funds or projects -- Ineligibility for funds after noncompliance -- Civil actions.

10-21-202. Moderate income housing report -- Contents -- Prioritization for funds or projects -- Ineligibility for funds after noncompliance -- Civil actions. (1) (a) The legislative body of a specified municipality shall submit an initial moderate income housing report to the division. (b) (i) This Subsection (1)(b) applies to a municipality that is not a specified municipality as of January 1, 2023. (ii) As of January 1, if a municipality changes from one class to another or grows in population to qualify as a specified municipality, the municipality shall submit an initial plan to the division on or before August 1 of the first calendar year beginning on January 1 in which the municipality qualifies as a specified municipality. (c) The initial report shall: (i) identify each moderate income housing strategy selected by the specified municipality for continued, ongoing, or one-time implementation, restating the exact language used to describe the moderate income housing strategy; and (ii) include an implementation plan. (d) For reporting year 2026: (i) a specified municipality complies with the reporting requirements described in this section if the specified municipality satisfied the reporting requirements in 2025; (ii) a specified municipality qualifies for priority consideration under Subsection (5)(a) if the specified municipality qualified for priority consideration in 2025; (iii) the Department of Transportation shall consider all municipalities that the Department of Transportation received a notice of prioritization for in 2025 eligible for priority consideration under Subsection (5)(a); and (iv) on or before July 1, 2026, a specified municipality shall report to the division on the number of residential certificates of occupancy the municipality issued during the previous 12-month period. (2) (a) After the division approves a specified municipality's initial report under this section, the specified municipality shall, as an administrative act, annually submit to the division a subsequent progress report on or before August 1 of each year after the year in which the specified municipality is required to submit the initial report. (b) The subsequent progress report shall include: (i) subject to Subsection (2)(c), a description of each action, whether one-time or ongoing, taken by the specified municipality during the previous 12-month period to implement the moderate income housing strategies identified in the initial report for implementation; (ii) a description of each land use regulation or land use decision made by the specified municipality during the previous 12-month period 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; (iii) a description of any barriers encountered by the specified municipality in the previous 12-month period in implementing the moderate income housing strategies; (iv) 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 or comparable license or permit to rent; (v) the number of residential dwelling units that have been entitled that have not received a building permit as of the submission date of the progress report; (vi) the number of new residential dwelling units, as measured by the number of residential certificates of occupancy the specified municipality issued during the previous 12-month period; (vii) the estimated percent change of total residential dwelling units, as measured by comparing the number of residential certificates of occupancy the specified municipality issued during the previous 12-month period to the number of housing units that existed in the specified municipality before the day on which the previous 12-month period began; (viii) shapefiles, or website links if shapefiles are not available, to current maps and tables related to zoning; (ix) a description of how the market has responded to the selected moderate income housing strategies, including the number of entitled moderate income housing units or other relevant data; and (x) any recommendations on how the state can support the specified municipality in implementing the moderate income housing strategies. (c) For purposes of describing actions taken by a specified municipality under Subsection (2)(b)(i), the specified municipality may include an ongoing action taken by the specified municipality before the 12-month reporting period applicable to the subsequent progress report if the specified municipality: (i) has already adopted an ordinance, approved a land use application, made an investment, or approved an agreement or financing that substantially promotes the implementation of a moderate income housing strategy identified in the initial report; and (ii) demonstrates in the subsequent progress report that the action taken under Subsection (2)(c)(i) is relevant to making meaningful progress towards the specified municipality's implementation plan. (d) A specified municipality's report shall be in a form: (i) approved by the division; and (ii) made available by the division on or before May 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 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 this section. (4) (a) An initial report complies with this section if the report: (i) includes the information required under Subsection (1)(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) if the specified municipality has a fixed guideway public transit station: (I) five or more of the moderate income housing strategies described in Subsection 10-21-201(3)(a)(iii), of which one shall be the moderate income housing strategy described in Subsection 10-21-201(3)(a)(iii)(U) and one shall be a moderate income housing strategy described in Subsection 10-21-201(3)(a)(iii)(G) or (H); or (II) the moderate income housing strategy described in Subsection 10-21-201(3)(a)(iii)(U), one of the moderate income housing strategies described in Subsections 10-21-201(3)(a)(iii)(X) through (CC), and one moderate income strategy described in Subsection 10-21-201(3)(a)(iii); and (iii) is in a form approved by the division. (b) A subsequent progress report complies with this section if the report: (i) 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) if the specified municipality has a fixed guideway public transit station: (I) five or more of the moderate income housing strategies described in Subsection 10-21-201(3)(a)(iii), of which one shall be the moderate income housing strategy described in Subsection 10-21-201(3)(a)(iii)(U) and one shall be a moderate income housing strategy described in Subsection 10-21-201(3)(a)(iii)(G) or (H); or (II) the moderate income housing strategy described in Subsection 10-21-201(3)(a)(iii)(U), one of the moderate income housing strategies described in Subsections 10-21-201(3)(a)(iii)(X) through (CC), and one moderate income housing strategy described in Subsection 10-21-201(3)(a)(iii); (ii) is in a form approved by the division; and (iii) 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; (D) identify how the market has responded to the specified municipality's selected moderate income housing strategies; (E) determine if the percent change of new residential dwelling units in the municipality during the previous 12-month period is 2.5% or greater; and (F) identify any barriers encountered by the specified municipality in implementing the selected moderate income housing strategies. (c) (i) Notwithstanding the requirements of Subsection (4)(a)(ii)(A) or (b)(i)(A), if a specified municipality without a fixed guideway public transit station implements or is implementing, by ordinance or development agreement, one of the following moderate income housing strategies, the division shall consider that one moderate income housing strategy to be the equivalent of three moderate income housing strategies: (A) a housing and transit reinvestment zone, as described in Subsection 10-21-201(3)(a)(iii)(X); (B) a home ownership promotion zone, as described in Subsection 10-21-201(3)(a)(iii)(Y); (C) a first home investment zone, described in Subsection 10-21-201(3)(a)(iii)(Z); (D) the approval or completion of a project described in Subsection 10-21-201(3)(a)(iii)(AA); (E) a qualifying affordable home ownership density bonus for single-family residential units, as described in Subsection 10-21-201(3)(a)(iii)(BB); or (F) a qualifying affordable home ownership density bonus for multi-family residential units, as described in Subsection 10-21-201(3)(a)(iii)(CC). (ii) If the division considers one moderate income housing strategy described in Subsection (4)(c)(i) as the equivalent of three moderate income housing strategies, the division shall also consider the specified municipality compliant with the reporting requirement described in this section for: (A) the year in which the specified municipality submits the initial report or subsequent report; and (B) two subsequent reporting years. (5) (a) A specified municipality qualifies for priority consideration under this Subsection (5) if the specified municipality's report: (i) complies with this section; 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 Transportation Commission may, in accordance with Subsection 72-1-304(3)(c), give priority consideration to transportation projects located within the boundaries of a specified municipality described in Subsection (5)(a) until the Department of Transportation receives notice from the division under Subsection (7)(c). (6) (a) In addition to the priority consideration a specified municipality may receive under Subsection (5), a specified municipality qualifies for priority consideration under this Subsection (6) if the specified municipality's report: (i) complies with this section; and (ii) demonstrates to the division that the specified municipality's percent change of new residential dwelling units in the municipality during the previous 12-month period, as described in Subsection (2)(b)(vii), is 2.5% or greater. (b) The Transportation Commission shall, in accordance with Subsection 72-1-304(3)(c), give priority consideration to a significant regional transportation project, as determined by the Transportation Commission, that benefits a specified municipality described in Subsection (6)(a) and is located within or outside the boundaries of the specified municipality until the Department of Transportation receives notice from the division under Subsection (7)(c). (7) (a) Upon determining that a specified municipality qualifies for priority consideration under Subsection (5) or (6), the division shall send a notice of prioritization to the legislative body of the specified municipality and the Department of Transportation. (b) The notice described in Subsection (7)(a) 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 under Subsection (5) or (6); and (iii) state the basis for the division's determination that the specified municipality qualifies for priority consideration. (c) The division shall notify the legislative body of a specified municipality and the Department of Transportation in writing if the division determines that the specified municipality no longer qualifies for priority consideration under Subsection (5) or (6). (8) (a) If the division, after reviewing a specified municipality's report, determines that the report does not comply with this section, the division shall send a notice of noncompliance to the legislative body of the specified municipality. (b) A specified municipality that receives a notice of noncompliance may: (i) cure each deficiency in the report within 90 days after the day on which the notice of noncompliance is sent; or (ii) request an appeal of the division's determination of noncompliance within 10 days after the day on which the notice of noncompliance is sent. (c) The notice described in Subsection (8)(a) shall: (i) describe each deficiency in the report and the actions needed to cure each deficiency; (ii) state that the specified municipality has an opportunity to: (A) submit to the division a corrected report that cures each deficiency in the report within 90 days after the day on which the notice of compliance is sent; or (B) submit to the division a request for an appeal of the division's determination of noncompliance within 10 days after the day on which the notice of noncompliance is sent; and (iii) state that failure to take action under Subsection (8)(c)(ii) will result in the specified municipality's ineligibility for funds under Subsection (10). (d) For purposes of curing the deficiencies in a report under this Subsection (8), if the action needed to cure the deficiency as described by the division requires the specified municipality to make a legislative change, the specified municipality may cure the deficiency by making that legislative change within the 90-day cure period. (e) (i) If a specified municipality submits to the division a corrected report in accordance with Subsection (8)(b)(i) and the division determines that the corrected report does not comply with this section, the division shall send a second notice of noncompliance to the legislative body of the specified municipality within 30 days after the day on which the corrected report is submitted. (ii) A specified municipality that receives a second notice of noncompliance may submit to the division a request for an appeal of the division's determination of noncompliance within 10 days after the day on which the second notice of noncompliance is sent. (iii) The notice described in Subsection (8)(e)(i) shall: (A) state that the specified municipality has an opportunity to submit to the division a request for an appeal of the division's determination of noncompliance within 10 days after the day on which the second notice of noncompliance is sent; and (B) state that failure to take action under Subsection (8)(e)(iii)(A) will result in the specified municipality's ineligibility for funds under Subsection (10). (9) (a) A specified municipality that receives a notice of noncompliance under Subsection (8)(a) or (8)(e)(i) may request an appeal of the division's determination of noncompliance within 10 days after the day on which the notice of noncompliance is sent. (b) Within 90 days after the day on which the division receives a request for an appeal, an appeal board consisting of the following three members shall review and issue a written decision on the appeal: (i) one individual appointed by the Utah League of Cities and Towns; (ii) one individual appointed by the Utah Homebuilders Association; and (iii) one individual appointed by the presiding member of the association of governments, established in accordance with an interlocal agreement under Title 11, Chapter 13, Interlocal Cooperation Act, of which the specified municipality is a member. (c) The written decision of the appeal board shall either uphold or reverse the division's determination of noncompliance. (d) The appeal board's written decision on the appeal is final. (10) (a) A specified municipality is ineligible for funds under this Subsection (10) if: (i) the specified municipality fails to submit a report to the division; (ii) after submitting a report to the division, the division determines that the report does not comply with this section and the specified municipality fails to: (A) cure each deficiency in the report within 90 days after the day on which the notice of noncompliance is sent; or (B) request an appeal of the division's determination of noncompliance within 10 days after the day on which the notice of noncompliance is sent; (iii) after submitting to the division a corrected report to cure the deficiencies in a previously submitted report, the division determines that the corrected report does not comply with this section and the specified municipality fails to request an appeal of the division's determination of noncompliance within 10 days after the day on which the second notice of noncompliance is sent; or (iv) after submitting a request for an appeal under Subsection (9), the appeal board issues a written decision upholding the division's determination of noncompliance. (b) The following apply to a specified municipality described in Subsection (10)(a) until the division provides notice under Subsection (10)(e): (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); (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 (8); and (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 (8). (c) Upon determining that a specified municipality is ineligible for funds under this Subsection (10), and is required to pay a fee under Subsection (10)(b), if applicable, the division shall send a notice of ineligibility to the legislative body of the specified municipality, the Department of Transportation, the State Tax Commission, and the Governor's Office of Planning and Budget. (d) The notice described in Subsection (10)(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 (10)(b), if applicable; and (iv) state the basis for the division's determination that the specified municipality is ineligible for funds. (e) The division shall notify the legislative body of a specified municipality and the Department of Transportation in writing if the division determines that the provisions of this Subsection (10) no longer apply to the specified municipality. (f) The division may not determine that a specified municipality that is required to pay a fee under Subsection (10)(b) is in compliance with the reporting requirements of this section until the specified municipality pays all outstanding fees required under Subsection (10)(b) to the Olene Walker Housing Loan Fund, created in Section 63N-24-302. (11) In a civil action seeking enforcement or claiming a violation of this section or of Subsection 10-20-405(4)(c), a plaintiff may not recover damages but may be awarded only injunctive or other equitable relief. Amended by Chapter 393, 2026 General Session

Source: Utah Office of Legislative Research and General Counsel (le.utah.gov)URL: https://le.utah.gov/xcode/Title10/Chapter21/10-21-P2.html?v=C10-21-P2_2025110620251206Fetched: 10/26/2026