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H.B. 49






Sponsor: Paul Ray

             6      This act modifies the Utah Municipal Code by amending the requirements for municipalities
             7      to plan for moderate income housing. The act redefines the contents and process of
             8      developing a moderate income housing plan. The act limits the scope of the moderate income
             9      housing planning requirement to cities. The act makes technical changes.
             10      This act affects sections of Utah Code Annotated 1953 as follows:
             11      AMENDS:
             12          10-9-307, as last amended by Chapter 117, Laws of Utah 1998
             13      Be it enacted by the Legislature of the state of Utah:
             14          Section 1. Section 10-9-307 is amended to read:
             15           10-9-307. Plans for moderate income housing.
             16          (1) The availability of moderate income housing is an issue of statewide concern. To this
             17      end:
             18          (a) municipalities should [afford a reasonable opportunity for] plan for and encourage a
             19      variety of housing, including moderate income housing, to meet the housing needs of [people
             20      desiring to live there; and] current and future residents of the state;
             21          (b) moderate income housing should be encouraged to allow persons with moderate
             22      incomes to benefit from and to fully participate in all aspects of neighborhood and community
             23      life[.]; and
             24          (c) where the ability to serve new housing is under severe fiscal constraint, moderate
             25      income housing should be directed to areas in cities where current and planned infrastructure and
             26      services capacity are most available.
             27          (2) As used in this section:

             28          [(a) "Moderate income housing" means housing occupied or reserved for occupancy by
             29      households with a gross household income equal to or less than 80% of the median gross income
             30      of the metropolitan statistical area for households of the same size.]
             31          [(b) "Plan for moderate income housing" or "plan" means a written document adopted by
             32      a municipal legislative body that includes:]
             33          [(i) an estimate of the existing supply of moderate income housing located within the
             34      municipality;]
             35          [(ii) an estimate of the need for moderate income housing in the municipality for the next
             36      five years as revised annually;]
             37          [(iii) a survey of total residential zoning;]
             38          [(iv) an evaluation of how existing zoning densities affect opportunities for moderate
             39      income housing; and]
             40          [(v) a description of the municipality's program to encourage an adequate supply of
             41      moderate income housing.]
             42          [(3) Before December 31, 1998, each municipal legislative body shall, as part of its general
             43      plan, adopt a plan for moderate income housing within that municipality.]
             44          [(4) A plan may provide moderate income housing by any means or combination of
             45      techniques which provide a realistic opportunity to meet estimated needs. The plan may include]
             46          (a) "Affordable" means that a household would pay no more than 30% of its gross income
             47      for the housing, including costs of water, sewer, electric, and heating utilities.
             48          (b) "Housing opportunity assessment" means a written assessment consisting of:
             49          (i) a worksheet containing measures of housing shortfalls and city capacity by which
             50      housing opportunity can be evaluated;
             51          (ii) a report that considers the variety of housing opportunities contemplated in the city's
             52      general plan and written development codes in terms of existing and proposed land area designated
             53      for various housing types, existing and proposed numbers of dwellings of various types, and
             54      existing and proposed populations and percentages of the city population which would be housed
             55      in various housing types;
             56          (iii) a market analysis of housing demand for the next five years prepared by the relevant
             57      association of governments to help define the level of need;
             58          (iv) an analysis of fiscal ability to serve new housing and of how this ability varies by

             59      location in the city in terms of current and planned availability of infrastructure and public service
             60      capacity; and
             61          (v) a statement certifying that the city qualifies for the exemption from the housing
             62      opportunity strategy as established by the ad hoc committee under Subsection (3)(d).
             63          (c) "Housing opportunity strategy" means a written plan which:
             64          (i) evaluates how existing city ordinances and formally adopted policies affect
             65      opportunities for a variety of housing, including moderate income housing and special needs
             66      housing;
             67          (ii) describes how the city proposes to modify its ordinances and policies to allow the
             68      market to respond to demand for moderate income housing, including special needs housing; and
             69          (iii) describes how the city will proactively promote and encourage the creation of an
             70      adequate supply and variety of housing, including moderate income housing, as determined by the
             71      housing opportunity assessment, and including an analysis of why the means or techniques selected
             72      provide a realistic opportunity [to meet the objectives of this section. Such techniques may
             73      include] for:
             74          [(a) rezoning for densities necessary to assure the economic viability of inclusionary
             75      developments, either through mandatory set asides or density bonuses;]
             76          [(b)] (A) infrastructure expansion and rehabilitation that will facilitate the preservation and
             77      construction of moderate income housing;
             78          [(c)] (B) rehabilitation of existing uninhabitable housing stock;
             79          [(d)] (C) consideration of waiving [construction] development related fees generally
             80      imposed by the [municipality] city;
             81          [(e)] (D) utilization of local, state, or federal funds or tax incentives to promote the
             82      construction of moderate income housing;
             83          [(f)] (E) utilization of programs offered by the Utah Housing [Finance Agency]
             84      Corporation within that agency's funding capacity; and
             85          [(g)] (F) utilization of affordable housing programs administered by the Department of
             86      Community and Economic Development.
             87          [(5) (a) After adoption of a plan for moderate income housing under Subsection (3)]
             88          (d) "Moderate income housing" means housing affordable to households with a gross
             89      household income equal to or less than 80% of the median gross income of the metropolitan

             90      statistical area, the county, or the state, whichever has the highest median, for households of the
             91      same size.
             92          (e) "Moderate income housing plan" or "plan" means a written document adopted by a
             93      city's legislative body that includes a housing opportunity assessment and, unless exempted, a
             94      housing opportunity strategy.
             95          (f) "Regional housing review" means a meeting organized by each association of
             96      governments to review special housing needs and other moderate income housing issues as they
             97      apply to the municipalities and counties belonging to the association of governments.
             98          (3) (a) Before July 31, 2002, an ad hoc housing opportunity committee shall be convened
             99      by the Division of Community and Economic Development to create the worksheet required as
             100      part of the housing opportunity assessment.
             101          (b) The ad hoc housing opportunity committee shall consist of:
             102          (i) three representatives from Utah municipal governments, one each from a city of the
             103      first, second, and third class;
             104          (ii) two representatives from Utah county governments;
             105          (iii) two representatives from Utah State government; and
             106          (iv) one representative each from the private for-profit development and nonprofit housing
             107      provider sectors.
             108          (c) The worksheet shall be used to evaluate the following criteria:
             109          (i) community income level;
             110          (ii) urban or rural character;
             111          (iii) housing market conditions;
             112          (iv) city growth pressure;
             113          (v) city-imposed constraints on the housing market;
             114          (vi) transportation facilities;
             115          (vii) infrastructure availability;
             116          (viii) low to moderate income housing support facilities; and
             117          (ix) availability and demand for assisted and special-needs housing.
             118          (d) The committee shall define in the worksheet objective criteria upon which a city will
             119      be exempted from preparing a housing opportunity strategy.
             120          (e) The committee shall complete the worksheet and submit a copy of it to each city of

             121      first, second, or third class before December 31, 2002.
             122          (f) The committee may be reconvened from time to time by the Division of Community
             123      Development to consider changes to the worksheet.
             124          (4) (a) Before December 31, 2002, and at least once every three years thereafter, each
             125      association of governments shall hold a regional housing review.
             126          (b) Each member municipality and county shall be represented at least once every three
             127      years at a regional housing review by at least one elected or appointed official who is involved in
             128      the development of housing policy for the municipality or county.
             129          (c) The primary purposes of the regional housing review shall be to promote voluntary
             130      discourse among participating entities on issues of housing opportunity in the region and to aid
             131      cities and counties in preparing and updating their plans. The association of governments shall
             132      lead a discussion among the member entities of regional housing needs and how the member
             133      entities could voluntarily address these needs in their own communities.
             134          (d) The association of governments shall present statistical and other information regarding
             135      housing market conditions and availability and demand for special needs housing which cities and
             136      counties may use in preparation and updating of their housing opportunity assessments.
             137          (5) (a) Before December 31, 2003, the legislative body of each city of the first, second, or
             138      third class shall, as part of its general plan, adopt a moderate income housing plan.
             139          (b) Each city shall submit its moderate income housing plan to its association of
             140      governments and to the Division of Community Development by January 31, 2004.
             141          (c) After adoption of a plan the legislative body of each city that is located within a county
             142      of the first or second class and of each other city with a population over 10,000 shall [annually]
             143      at least once every three years:
             144          (i) review and update the plan [and its implementation]; and
             145          [(ii) prepare a report setting forth the findings of the review.]
             146          (ii) if the city was required to include a housing opportunity strategy in the previous plan,
             147      prepare a report on its implementation.
             148          [(b)] (d) Each report under Subsection (5)[(a)](c)(ii) shall include a description of:
             149          (i) efforts made by the [municipality] city to reduce, mitigate, or eliminate local regulatory
             150      barriers to moderate income housing;
             151          (ii) actions taken by the [municipality] city to encourage preservation of existing moderate

             152      income housing and development of new moderate income housing;
             153          (iii) progress made within the [municipality] city to provide moderate income housing, as
             154      measured by permits issued for new units of moderate income housing; and
             155          (iv) efforts made by the [municipality] city to coordinate moderate income housing plans
             156      and actions with neighboring [municipalities] cities.
             157          [(c)] (e) The legislative body of each city that is located within a county of the first or
             158      second class and of each other city with a population over 10,000 shall send a copy of the updated
             159      plan and report if required under Subsection (5)[(a)](c)(ii) to the Department of Community and
             160      Economic Development and the association of governments in which the [municipality is located]
             161      city is located by January 31 of the calendar year following the calendar year in which the plan and
             162      report were adopted.
             163          (f) In the allocation of selected funds administered by the Department of Community and
             164      Economic Development, the department shall devise methods of giving a competitive advantage
             165      to cities which, in the preceding calendar year, have complied with the requirements of this
             166      section.

Legislative Review Note
    as of 11-14-01 2:04 PM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

Committee Note

The Political Subdivisions Interim Committee recommended this bill.

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