Chief Sponsor: Gage Froerer

Senate Sponsor: Daniel W. Thatcher


8     General Description:
9          This bill amends provisions related to a good landlord program.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines "residential landlord";
13          ▸     prohibits a municipality from requiring a residential landlord to deny tenancy to
14     certain individuals;
15          ▸     prohibits a municipality from requiring a residential landlord to provide certain
16     information on a tenant or on a contract with a tenant;
17          ▸     permits a municipality to require a copy of an agreement between the owner of
18     record of real property and a third-party provider who manages the property;
19          ▸     if a residential landlord owns multiple properties, requires a municipality to charge
20     a disproportionate rental fee reduction for each property that is in compliance; and
21          ▸     makes technical and conforming amendments.
22     Money Appropriated in this Bill:
23          None
24     Other Special Clauses:
25          None
26     Utah Code Sections Affected:
27     AMENDS:
28          10-1-203.5, as enacted by Laws of Utah 2012, Chapter 289

30     Be it enacted by the Legislature of the state of Utah:
31          Section 1. Section 10-1-203.5 is amended to read:
32          10-1-203.5. Disproportionate rental fee -- Good landlord training program -- Fee
33     reduction.
34          (1) As used in this section:
35          (a) "Business" means the rental of one or more residential units within a municipality.
36          (b) "Disproportionate rental fee" means a fee adopted by a municipality to recover its
37     disproportionate costs of providing municipal services to residential rental units compared to
38     similarly-situated owner-occupied housing.
39          (c) "Disproportionate rental fee reduction" means a reduction of a disproportionate
40     rental fee as a condition of complying with the requirements of a good landlord training
41     program.
42          (d) "Exempt business" means the rental of a residential unit within a single structure
43     that contains:
44          (i) no more than four residential units; and
45          (ii) one unit occupied by the owner.
46          (e) "Exempt landlord" means a residential landlord who demonstrates to a
47     municipality:
48          (i) completion of any live good landlord training program offered by any other Utah
49     city that offers a good landlord program;
50          (ii) that the residential landlord has a current professional designation of "property
51     manager"; or
52          (iii) compliance with a requirement described in Subsection [(4)] (6).
53          (f) "Good landlord training program" means a program offered by a municipality to
54     encourage business practices that are designed to reduce the disproportionate cost of municipal
55     services to residential rental units by offering a disproportionate rental fee reduction for any
56     residential landlord who:
57          (i) (A) completes a landlord training program provided by the municipality; or

58          (B) is an exempt landlord;
59          (ii) implements measures to reduce crime in rental housing as specified in a municipal
60     ordinance or policy; and
61          (iii) operates and manages rental housing in accordance with an applicable municipal
62     ordinance.
63          (g) "Municipal services" means:
64          (i) public utilities;
65          (ii) police;
66          (iii) fire;
67          (iv) code enforcement;
68          (v) storm water runoff;
69          (vi) traffic control;
70          (vii) parking;
71          (viii) transportation;
72          (ix) beautification; or
73          (x) snow removal.
74          (h) "Municipal services study" means a study of the cost of all municipal services to
75     rental housing that:
76          (i) are reasonably attributable to the rental housing; and
77          (ii) exceed the municipality's cost to serve similarly-situated, owner-occupied housing.
78          (i) "Residential landlord" means:
79          (i) the owner of record of residential real property that is leased or rented to another; or
80          (ii) a third-party provider that has an agreement with the owner of record to manage the
81     owner's real property.
82          (2) The legislative body of a municipality may charge and collect a disproportionate
83     rental fee on a business that causes disproportionate costs to municipal services if the
84     municipality:
85          (a) has performed a municipal services study; and

86          (b) adopts a disproportionate rental fee that does not exceed the amount that is justified
87     by the municipal services study on a per residential rental unit basis.
88          (3) A municipality may not:
89          (a) impose a disproportionate rental fee on an exempt business;
90          (b) require a residential landlord to deny tenancy to an individual released from
91     probation or parole whose conviction date occurred more than four years before the date of
92     tenancy; [or]
93          (c) without cause and notice, require a residential landlord to submit to a random
94     building inspection[.];
95          (d) unless agreed to by a residential landlord and in compliance with state and federal
96     law, collect from a residential landlord or retain:
97          (i) a tenant's consumer report, as defined in 15 U.S.C. Sec. 1681a, in violation of 15
98     U.S.C. Sec. 1681b as amended;
99          (ii) a tenant's criminal history record information in violation of Section 53-10-108; or
100          (iii) a copy of an agreement between the residential landlord and a tenant regarding the
101     tenant's term of occupancy, rent, or any other condition of occupancy;
102          (e) require that any documents required from the landlord be notarized; or
103          (f) prohibit a residential landlord from passing on to the tenant the license or
104     disproportionate fee.
105          (4) Nothing in this section shall limit:
106          (a) a municipality's right to audit and inspect an exempt residential landlord's records to
107     ensure compliance with a disproportionate rental fee reduction program; or
108          (b) the right of a municipality with a short-term or vacation rental ordinance to review
109     an owner's rental agreement to verify compliance with the municipality's ordinance.
110          (5) Notwithstanding Section 10-11-2, a residential landlord may provide the name and
111     address of a person to whom all correspondence regarding the property shall be sent. If the
112     landlord provides the name and address in writing, the municipality shall provide all further
113     correspondence regarding the property to the designated person. The municipality may also

114     provide copies of notices to the residential landlord.
115          [(4)] (6) In addition to a requirement or qualification described in Subsection (1)(e), a
116     municipality may recognize a good landlord training program described in its ordinance.
117          [(5)] (7) (a) If a municipality adopts a good landlord program, the municipality shall
118     provide an appeal procedure affording due process of law to a residential landlord who is
119     denied a disproportionate rental fee reduction.
120          (b) A municipality may not adopt a new disproportionate rental fee unless the
121     municipality provides a disproportionate rental fee reduction.
122          (8) A property manager who represents an owner of property that qualifies for a
123     municipal disproportionate rental fee may not be restricted from simultaneously representing
124     another owner of property that does not qualify for a municipal disproportionate rental fee.