1     
SINGLE-FAMILY HOUSING MODIFICATIONS

2     
2021 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Raymond P. Ward

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to single-family housing.
10     Highlighted Provisions:
11          This bill:
12          ▸     modifies and defines terms applicable to municipal and county land use
13     development and management;
14          ▸     in any local land use zone permitting accessory dwelling units:
15               •     requires municipalities and counties to classify certain accessory dwelling units
16     as a permitted land use; and
17               •     prohibits municipalities and counties from establishing restrictions or
18     requirements for the construction or use of certain accessory dwelling units;
19          ▸     provides for statewide amendments to the International Residential Code related to
20     accessory dwelling units;
21          ▸     requires the executive director of the Olene Walker Housing Loan Fund to establish
22     a program to provide loan guarantees for certain loans related to accessory dwelling
23     units;
24          ▸     prevents a homeowners association from prohibiting the construction or rental of
25     certain accessory dwelling units; and
26          ▸     makes technical and conforming changes.
27     Money Appropriated in this Bill:

28          None
29     Other Special Clauses:
30          None
31     Utah Code Sections Affected:
32     AMENDS:
33          10-9a-505.5, as last amended by Laws of Utah 2012, Chapter 172
34          15A-3-202, as last amended by Laws of Utah 2020, Chapter 441
35          15A-3-204, as last amended by Laws of Utah 2016, Chapter 249
36          15A-3-206, as last amended by Laws of Utah 2018, Chapter 186
37          17-27a-505.5, as last amended by Laws of Utah 2015, Chapter 465
38          35A-8-505, as last amended by Laws of Utah 2020, Chapter 241
39          57-8a-209, as last amended by Laws of Utah 2018, Chapter 395
40          57-8a-218, as last amended by Laws of Utah 2017, Chapter 131
41     ENACTS:
42          10-9A-530, Utah Code Annotated 1953
43          17-27A-526, Utah Code Annotated 1953
44          35A-8-504.5, Utah Code Annotated 1953
45     

46     Be it enacted by the Legislature of the state of Utah:
47          Section 1. Section 10-9a-505.5 is amended to read:
48          10-9a-505.5. Limit on single family designation.
49          (1) As used in this section, "single-family limit" means the number of [unrelated]
50     individuals allowed to occupy each residential unit that is recognized by a land use authority in
51     a zone permitting occupancy by a single family.
52          (2) A municipality may not adopt a single-family limit that is less than:
53          (a) three, if the municipality has within its boundary:
54          (i) a state university; or
55          (ii) a private university with a student population of at least 20,000; or
56          (b) four, for each other municipality.
57          Section 2. Section 10-9A-530 is enacted to read:
58          10-9A-530. Internal accessory dwelling units.

59          (1) As used in this section, "internal accessory dwelling unit" means an accessory
60     dwelling unit created within a primary owner-occupied single-family dwelling.
61          (2) Subject to Subsection (3), in any zone or area permitting accessory dwelling units:
62          (a) the use of an internal accessory dwelling unit is a permitted use; and
63          (b) a municipality may not establish any restrictions or requirements for the
64     construction or use of an internal accessory dwelling unit, including a restriction or requirement
65     governing:
66          (i) the size of an internal accessory dwelling unit in relation to the primary dwelling
67     within which the internal accessory dwelling unit is created;
68          (ii) total lot size;
69          (iii) parking; or
70          (iv) street frontage.
71          (3) An internal accessory dwelling unit shall comply with all applicable:
72          (a) building codes; and
73          (b) fire codes.
74          Section 3. Section 15A-3-202 is amended to read:
75          15A-3-202. Amendments to Chapters 1 through 5 of IRC.
76          (1) In IRC, Section R102, a new Section R102.7.2 is added as follows: "R102.7.2
77     Physical change for bedroom window egress. A structure whose egress window in an existing
78     bedroom is smaller than required by this code, and that complied with the construction code in
79     effect at the time that the bedroom was finished, is not required to undergo a physical change to
80     conform to this code if the change would compromise the structural integrity of the structure or
81     could not be completed in accordance with other applicable requirements of this code,
82     including setback and window well requirements."
83          (2) In IRC, Section R108.3, the following sentence is added at the end of the section:
84     "The building official shall not request proprietary information."
85          (3) In IRC, Section 109:
86          (a) A new IRC, Section 109.1.5, is added as follows: "R109.1.5 Weather-resistant
87     exterior wall envelope inspections. An inspection shall be made of the weather-resistant
88     exterior wall envelope as required by Section R703.1 and flashings as required by Section
89     R703.8 to prevent water from entering the weather-resistive barrier."

90          (b) The remaining sections are renumbered as follows: R109.1.6 Other inspections;
91     R109.1.6.1 Fire- and smoke-resistance-rated construction inspection; R109.1.6.2 Reinforced
92     masonry, insulating concrete form (ICF) and conventionally formed concrete wall inspection;
93     and R109.1.7 Final inspection.
94          (4) IRC, Section R114.1, is deleted and replaced with the following: "R114.1 Notice to
95     owner. Upon notice from the building official that work on any building or structure is being
96     prosecuted contrary to the provisions of this code or other pertinent laws or ordinances or in an
97     unsafe and dangerous manner, such work shall be immediately stopped. The stop work order
98     shall be in writing and shall be given to the owner of the property involved, or to the owner's
99     agent or to the person doing the work; and shall state the conditions under which work will be
100     permitted to resume."
101          (5) In IRC, Section R202, the following definition is added: "ACCESSORY
102     DWELLING UNIT: A habitable living unit created within a primary owner-occupied
103     single-family dwelling."
104          [(5)] (6) In IRC, Section R202, the following definition is added: "CERTIFIED
105     BACKFLOW PREVENTER ASSEMBLY TESTER: A person who has shown competence to
106     test Backflow prevention assemblies to the satisfaction of the authority having jurisdiction
107     under Utah Code, Subsection 19-4-104(4)."
108          [(6)] (7) In IRC, Section R202, the definition of "Cross Connection" is deleted and
109     replaced with the following: "CROSS CONNECTION. Any physical connection or potential
110     connection or arrangement between two otherwise separate piping systems, one of which
111     contains potable water and the other either water of unknown or questionable safety or steam,
112     gas, or chemical, whereby there exists the possibility for flow from one system to the other,
113     with the direction of flow depending on the pressure differential between the two systems (see
114     "Backflow, Water Distribution")."
115          [(7)] (8) In IRC, Section 202, in the definition for gray water a comma is inserted after
116     the word "washers"; the word "and" is deleted; and the following is added to the end: "and
117     clear water wastes which have a pH of 6.0 to 9.0; are non-flammable; non-combustible;
118     without objectionable odors; non-highly pigmented; and will not interfere with the operation of
119     the sewer treatment facility."
120          [(8)] (9) In IRC, Section R202, the definition of "Potable Water" is deleted and

121     replaced with the following: "POTABLE WATER. Water free from impurities present in
122     amounts sufficient to cause disease or harmful physiological effects and conforming to the
123     Utah Code, Title 19, Chapter 4, Safe Drinking Water Act, and Title 19, Chapter 5, Water
124     Quality Act, and the regulations of the public health authority having jurisdiction."
125          [(9)] (10) IRC, Figure R301.2(5), is deleted and replaced with R301.2(5) as follows:
126     
"TABLE R301.2(5)
127     
GROUND SNOW LOADS FOR SELECTED LOCATIONS IN UTAH
128      City/TownCountyGround Snow Load (lb/ft2)Elevation (ft)
129      BeaverBeaver355886
130      Brigham CityBox Elder424423
131      Castle DaleEmery325669
132      CoalvilleSummit575581
133      DuchesneDuchesne395508
134      FarmingtonDavis354318
135      FillmoreMillard305138
136      Heber CityWasatch605604
137      JunctionPiute276030
138      KanabKane254964
139      LoaWayne377060
140      LoganCache434531
141      ManilaDaggett266368
142      MantiSanpete375620
143      MoabGrand214029
144      MonticelloSan Juan677064
145      MorganMorgan525062
146      NephiJuab395131
147      OgdenWeber374334
148      PanguitchGarfield416630
149      ParowanIron326007
150      PriceCarbon315558
151      ProvoUtah314541
152      RandolphRich506286
153      RichfieldSevier275338
154      St. GeorgeWashington212585
155      Salt Lake CitySalt Lake284239
156      TooeleTooele355029
157      VernalUintah395384
158      Note: To convert lb/ft2 to kN/m2, multiply by 0.0479. To convert feet to meters, multiply
by 0.3048.
1. Statutory requirements of the Authority Having Jurisdiction are not included in this state
ground snow load table.
2. For locations where there is substantial change in altitude over the city/town, the load
applies at and below the cited elevation, with a tolerance of 100 ft (30 m).
3. For other locations in Utah, see Bean, B., Maguire, M., Sun, Y. (2018), "The Utah Snow
Load Study," Utah State University Civil and Environmental Engineering Faculty
Publications, Paper 3589, http://utahsnowload.usu.edu/, for ground snow load values.
159          [(10)] (11) IRC, Section R301.6, is deleted and replaced with the following: "R301.6
160     Utah Snow Loads. The snow loads specified in Table R301.2(5b) shall be used for the
161     jurisdictions identified in that table. Otherwise, for other locations in Utah, see Bean, B.,
162     Maguire, M., Sun, Y. (2018), "The Utah Snow Load Study," Utah State University Civil and
163     Environmental Engineering Faculty Publications, Paper 3589, http://utahsnowload.usu.edu/, for
164     ground snow load values."
165          [(11)] (12) In IRC, Section R302.2, the following sentence is added after the second
166     sentence: "When an access/maintenance agreement or easement is in place, plumbing,
167     mechanical ducting, schedule 40 steel gas pipe, and electric service conductors including
168     feeders, are permitted to penetrate the common wall at grade, above grade, or below grade."
169          (13) In IRC, Section R302.3, a new exception 3 is added as follows: "3. Accessory
170     dwelling units separated by walls or floor assemblies protected by not less than 1/2-inch (12.7
171     mm) gypsum board or equivalent on each side of the wall or bottom of the floor assembly are

172     exempt from the requirements of this section."
173          [(12)] (14) In IRC, Section R302.5.1, the words "self-closing device" are deleted and
174     replaced with "self-latching hardware."
175          [(13)] (15) IRC, Section R302.13, is deleted.
176          [(14)] (16) In IRC, Section R303.4, the number "5" is changed to "3" in the first
177     sentence.
178          (17) In IRC, Section R310.6, in the exception, the words "or accessory dwelling units"
179     are added after the words "sleeping rooms".
180          [(15)] (18) IRC, Sections R311.7.4 through R311.7.5.3, are deleted and replaced with
181     the following: "R311.7.4 Stair treads and risers. R311.7.5.1 Riser height. The maximum riser
182     height shall be 8 inches (203 mm). The riser shall be measured vertically between leading
183     edges of the adjacent treads. The greatest riser height within any flight of stairs shall not
184     exceed the smallest by more than 3/8 inch (9.5 mm).
185     R311.7.5.2 Tread depth. The minimum tread depth shall be 9 inches (228 mm). The tread
186     depth shall be measured horizontally between the vertical planes of the foremost projection of
187     adjacent treads and at a right angle to the tread's leading edge. The greatest tread depth within
188     any flight of stairs shall not exceed the smallest by more than 3/8 inch (9.5 mm). Winder
189     treads shall have a minimum tread depth of 10 inches (254 mm) measured as above at a point
190     12 inches (305 mm) from the side where the treads are narrower. Winder treads shall have a
191     minimum tread depth of 6 inches (152 mm) at any point. Within any flight of stairs, the
192     greatest winder tread depth at the 12-inch (305 mm) walk line shall not exceed the smallest by
193     more than 3/8 inch (9.5 mm).
194     R311.7.5.3 Profile. The radius of curvature at the leading edge of the tread shall be no greater
195     than 9/16 inch (14.3 mm). A nosing not less than 3/4 inch (19 mm) but not more than 1 1/4
196     inches (32 mm) shall be provided on stairways with solid risers. The greatest nosing projection
197     shall not exceed the smallest nosing projection by more than 3/8 inch (9.5 mm) between two
198     stories, including the nosing at the level of floors and landings. Beveling of nosing shall not
199     exceed 1/2 inch (12.7 mm). Risers shall be vertical or sloped from the underside of the leading
200     edge of the tread above at an angle not more than 30 degrees (0.51 rad) from the vertical. Open
201     risers are permitted, provided that the opening between treads does not permit the passage of a
202     4-inch diameter (102 mm) sphere.

203     Exceptions.
204     1. A nosing is not required where the tread depth is a minimum of 10 inches (254 mm).
205     2. The opening between adjacent treads is not limited on stairs with a total rise of 30 inches
206     (762 mm) or less."
207          [(16)] (19) IRC, Section R312.2, is deleted.
208          [(17)] (20) IRC, Sections R313.1 through R313.2.1, are deleted and replaced with the
209     following: "R313.1 Design and installation. When installed, automatic residential fire
210     sprinkler systems for townhouses or one- and two-family dwellings shall be designed and
211     installed in accordance with Section P2904 or NFPA 13D."
212          (21) In IRC, Section R314.2.2, the words "or accessory dwelling units" are added after
213     the words "sleeping rooms".
214          (22) In IRC, Section R315.2.2, the words "or accessory dwelling units" are added after
215     the words "sleeping rooms".
216          [(18)] (23) In IRC, Section 315.3, the following words are added to the first sentence
217     after the word "installed": "on each level of the dwelling unit and."
218          [(19)] (24) In IRC, Section R315.5, a new exception, 3, is added as follows:
219     "3. Hard wiring of carbon monoxide alarms in existing areas shall not be required where the
220     alterations or repairs do not result in the removal of interior wall or ceiling finishes exposing
221     the structure, unless there is an attic, crawl space or basement available which could provide
222     access for hard wiring, without the removal of interior finishes."
223          [(20)] (25) A new IRC, Section R315.7, is added as follows: " R315.7 Interconnection.
224     Where more than one carbon monoxide alarm is required to be installed within an individual
225     dwelling unit in accordance with Section R315.1, the alarm devices shall be interconnected in
226     such a manner that the actuation of one alarm will activate all of the alarms in the individual
227     unit. Physical interconnection of smoke alarms shall not be required where listed wireless
228     alarms are installed and all alarms sound upon activation of one alarm.
229     Exception: Interconnection of carbon monoxide alarms in existing areas shall not be required
230     where alterations or repairs do not result in removal of interior wall or ceiling finishes exposing
231     the structure, unless there is an attic, crawl space or basement available which could provide
232     access for interconnection without the removal of interior finishes."
233          [(21)] (26) In IRC, Section R317.1.5, the period is deleted and the following language

234     is added to the end of the paragraph: "or treated with a moisture resistant coating."
235          [(22)] (27) In IRC, Section 326.1, the words "residential provisions of the" are added
236     after the words "pools and spas shall comply with".
237          [(23)] (28) In IRC, Section R403.1.6, a new Exception 3 is added as follows: "3.
238     When anchor bolt spacing does not exceed 32 inches (813 mm) apart, anchor bolts may be
239     placed with a minimum of two bolts per plate section located not less than 4 inches (102 mm)
240     from each end of each plate section at interior bearing walls, interior braced wall lines, and at
241     all exterior walls."
242          [(24)] (29) In IRC, Section R403.1.6.1, a new exception is added at the end of Item 2
243     and Item 3 as follows: "Exception: When anchor bolt spacing does not exceed 32 inches (816
244     mm) apart, anchor bolts may be placed with a minimum of two bolts per plate section located
245     not less than 4 inches (102 mm) from each end of each plate section at interior bearing walls,
246     interior braced wall lines, and at all exterior walls."
247          [(25)] (30) In IRC, Section R404.1, a new exception is added as follows: "Exception:
248     As an alternative to complying with Sections R404.1 through R404.1.5.3, concrete and
249     masonry foundation walls may be designed in accordance with IBC Sections 1807.1.5 and
250     1807.1.6 as amended in Section 1807.1.6.4 and Table 1807.1.6.4 under these rules."
251          [(26)] (31) In IRC, Section R405.1, a new exception is added as follows: "Exception:
252     When a geotechnical report has been provided for the property, a drainage system is not
253     required unless the drainage system is required as a condition of the geotechnical report. The
254     geological report shall make a recommendation regarding a drainage system."
255          Section 4. Section 15A-3-204 is amended to read:
256          15A-3-204. Amendments to Chapters 16 through 25 of IRC.
257          (1) In IRC, Section M1602.2, a new exception is added at the end of Item 6 as follows:
258     "Exception: The discharge of return air from an accessory dwelling unit into another dwelling
259     unit, or into an accessory dwelling unit from another dwelling unit, is not prohibited."
260          (2) A new IRC, Section G2401.2, is added as follows: "G2401.2 Meter Protection.
261     Fuel gas services shall be in an approved location and/or provided with structures designed to
262     protect the fuel gas meter and surrounding piping from physical damage, including falling,
263     moving, or migrating ice and snow. If an added structure is used, it must provide access for
264     service and comply with the IBC or the IRC."

265          Section 5. Section 15A-3-206 is amended to read:
266          15A-3-206. Amendments to Chapters 36 through 44 and Appendix F of IRC.
267          (1) In IRC, Section E3601.6.2, a new exception is added as follows: "Exception: An
268     occupant of an accessory dwelling unit is not required to have access to the disconnect serving
269     the dwelling unit in which they reside."
270          [(1)] (2) In IRC, Section E3705.4.5, the following words are added after the word
271     "assemblies": "with ungrounded conductors 10 AWG and smaller".
272          [(2)] (3) In IRC, Section E3901.9, the following exception is added:
273     "Exception: Receptacles or other outlets adjacent to the exterior walls of the garage, outlets
274     adjacent to an exterior wall of the garage, or outlets in a storage room with entry from the
275     garage may be connected to the garage branch circuit."
276          [(3)] (4) IRC, Section E3902.16 is deleted.
277          [(4)] (5) In Section E3902.17:
278          (a) following the word "Exception" the number "1." is added; and
279          (b) at the end of the section, the following sentences are added:
280     "2. This section does not apply for a simple move or an extension of a branch circuit or an
281     outlet which does not significantly increase the existing electrical load. This exception does
282     not include changes involving remodeling or additions to a residence."
283          [(5)] (6) IRC, Chapter 44, is amended by adding the following reference standard:
284      "Standard reference
number
TitleReferenced in code
section number
285      USC-FCCCHR 10th
Edition Manual of
Cross Connection
Control
Foundation for Cross-Connection Control
and Hydraulic Research University of
Southern California Kaprielian Hall 300
Los Angeles CA 90089-2531
Table P2902.3"
286          [(6)] (7) (a) When passive radon controls or portions thereof are voluntarily installed,
287     the voluntary installation shall comply with Appendix F of the IRC.
288          (b) An additional inspection of a voluntary installation described in Subsection [(6)]
289     (7)(a) is not required.
290          Section 6. Section 17-27a-505.5 is amended to read:
291          17-27a-505.5. Limit on single family designation.

292          (1) As used in this section, "single-family limit" means the number of [unrelated]
293     individuals allowed to occupy each residential unit that is recognized by a land use authority in
294     a zone permitting occupancy by a single family.
295          (2) A county may not adopt a single-family limit that is less than:
296          (a) three, if the county has within its unincorporated area:
297          (i) a state university;
298          (ii) a private university with a student population of at least 20,000; or
299          (iii) a mountainous planning district; or
300          (b) four, for each other county.
301          Section 7. Section 17-27a-526 is enacted to read:
302          17-27a-526. Internal accessory dwelling units.
303          (1) As used in this section, "internal accessory dwelling unit" means an accessory
304     dwelling unit created within a primary owner-occupied single-family dwelling.
305          (2) Subject to Subsection (3), in any zone or area permitting accessory dwelling units:
306          (a) the use of an internal accessory dwelling unit is a permitted use; and
307          (b) a county may not establish any restrictions or requirements for the construction or
308     use of an internal accessory dwelling unit, including a restriction or requirement governing:
309          (i) the size of an internal accessory dwelling unit in relation to the primary dwelling
310     within which the internal accessory dwelling unit is created;
311          (ii) total lot size;
312          (iii) parking; or
313          (iv) street frontage.
314          (3) An internal accessory dwelling unit shall comply with all applicable:
315          (a) building codes; and
316          (b) fire codes.
317          Section 8. Section 35A-8-504.5 is enacted to read:
318          35A-8-504.5. Low-income ADU loan guarantee program.
319          (1) As used in this section:
320          (a) "Accessory dwelling unit" means the same as that term is defined in Section
321     10-9a-103.
322          (b) "Borrower" means a residential property owner who receives a low-income ADU

323     loan from a lender.
324          (c) "Lender" means a trust company, savings bank, savings and loan association, bank,
325     credit union, or any other entity that provides low-income ADU loans directly to borrowers.
326          (d) "Low-income ADU loan" means a loan made by a lender to a borrower for the
327     purpose of financing the construction of an accessory dwelling unit that is:
328          (i) located on the borrower's residential property; and
329          (ii) rented to a low-income individual.
330          (e) "Low-income individual" means an individual whose household income is less than
331     80% of the area median income.
332          (2) The executive director shall establish a program to provide loan guarantees on
333     behalf of borrowers for the purpose of insuring the repayment of low-income ADU loans.
334          (3) The executive director may not provide a loan guarantee for a low-income ADU
335     loan under this section unless:
336          (a) the lender:
337          (i) agrees in writing to participate in the loan guarantee program;
338          (ii) makes available to prospective borrowers the option of receiving a low-income
339     ADU loan that:
340          (A) has a term of 15 years; and
341          (B) charges interest at a fixed rate;
342          (iii) monitors the activities of the borrower on a yearly basis during the term of the loan
343     to ensure the borrower's compliance with:
344          (A) Subsection (3)(c); and
345          (B) any other term or condition of the loan; and
346          (iv) promptly notifies the executive director in writing if the borrower fails to comply
347     with:
348          (A) Subsection (3)(c); or
349          (B) any other term or condition of the loan;
350          (b) the loan terms of the low-income ADU loan:
351          (i) are consistent with the loan terms described in Subsection (3)(a)(ii); or
352          (ii) if different from the loan terms described in Subsection (3)(a)(ii), are mutually
353     agreed upon by the lender and the borrower; and

354          (c) the borrower:
355          (i) agrees in writing to participate in the loan guarantee program;
356          (ii) constructs an accessory dwelling unit on the borrower's residential property within
357     one year after the day on which the borrower receives the loan;
358          (iii) occupies the primary residence to which the accessory dwelling unit is associated:
359          (A) after the accessory dwelling unit is completed; and
360          (B) for the remainder of the term of the loan; and
361          (iv) rents the accessory dwelling unit to a low-income individual:
362          (A) after the accessory dwelling unit is completed; and
363          (B) for the remainder of the term of the loan.
364          (4) At the direction of the board, the executive director shall make rules in accordance
365     with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to establish:
366          (a) the minimum criteria for lenders and borrowers to participate in the loan guarantee
367     program;
368          (b) the terms and conditions for loan guarantees provided under this section, consistent
369     with Subsection (3); and
370          (c) procedures for the loan guarantee process.
371          Section 9. Section 35A-8-505 is amended to read:
372          35A-8-505. Activities authorized to receive fund money -- Powers of the executive
373     director.
374          At the direction of the board, the executive director may:
375          (1) provide fund money to any of the following activities:
376          (a) the acquisition, rehabilitation, or new construction of low-income housing units;
377          (b) matching funds for social services projects directly related to providing housing for
378     special-need renters in assisted projects;
379          (c) the development and construction of accessible housing designed for low-income
380     persons;
381          (d) the construction or improvement of a shelter or transitional housing facility that
382     provides services intended to prevent or minimize homelessness among members of a specific
383     homeless subpopulation;
384          (e) the purchase of an existing facility to provide temporary or transitional housing for

385     the homeless in an area that does not require rezoning before providing such temporary or
386     transitional housing;
387          (f) the purchase of land that will be used as the site of low-income housing units;
388          (g) the preservation of existing affordable housing units for low-income persons; [and]
389          (h) providing loan guarantees under Section 35A-8-504.5; and
390          [(h)] (i) other activities that will assist in minimizing homelessness or improving the
391     availability or quality of housing in the state for low-income persons; and
392          (2) do any act necessary or convenient to the exercise of the powers granted by this part
393     or reasonably implied from those granted powers, including:
394          (a) making or executing contracts and other instruments necessary or convenient for
395     the performance of the executive director and board's duties and the exercise of the executive
396     director and board's powers and functions under this part, including contracts or agreements for
397     the servicing and originating of mortgage loans;
398          (b) procuring insurance against a loss in connection with property or other assets held
399     by the fund, including mortgage loans, in amounts and from insurers it considers desirable;
400          (c) entering into agreements with a department, agency, or instrumentality of the
401     United States or this state and with mortgagors and mortgage lenders for the purpose of
402     planning and regulating and providing for the financing and refinancing, purchase,
403     construction, reconstruction, rehabilitation, leasing, management, maintenance, operation, sale,
404     or other disposition of residential housing undertaken with the assistance of the department
405     under this part;
406          (d) proceeding with a foreclosure action, to own, lease, clear, reconstruct, rehabilitate,
407     repair, maintain, manage, operate, assign, encumber, sell, or otherwise dispose of real or
408     personal property obtained by the fund due to the default on a mortgage loan held by the fund
409     in preparation for disposition of the property, taking assignments of leases and rentals,
410     proceeding with foreclosure actions, and taking other actions necessary or incidental to the
411     performance of its duties; and
412          (e) selling, at a public or private sale, with public bidding, a mortgage or other
413     obligation held by the fund.
414          Section 10. Section 57-8a-209 is amended to read:
415          57-8a-209. Rental restrictions.

416          (1) (a) Subject to Subsections (1)(b), (5), [and] (6), and (10), an association may:
417          (i) create restrictions on the number and term of rentals in an association; or
418          (ii) prohibit rentals in the association.
419          (b) An association that creates a rental restriction or prohibition in accordance with
420     Subsection (1)(a) shall create the rental restriction or prohibition in a recorded declaration of
421     covenants, conditions, and restrictions, or by amending the recorded declaration of covenants,
422     conditions, and restrictions.
423          (2) If an association prohibits or imposes restrictions on the number and term of
424     rentals, the restrictions shall include:
425          (a) a provision that requires the association to exempt from the rental restrictions the
426     following lot owner and the lot owner's lot:
427          (i) a lot owner in the military for the period of the lot owner's deployment;
428          (ii) a lot occupied by a lot owner's parent, child, or sibling;
429          (iii) a lot owner whose employer has relocated the lot owner for two years or less;
430          (iv) a lot owned by an entity that is occupied by an individual who:
431          (A) has voting rights under the entity's organizing documents; and
432          (B) has a 25% or greater share of ownership, control, and right to profits and losses of
433     the entity; or
434          (v) a lot owned by a trust or other entity created for estate planning purposes if the trust
435     or other estate planning entity was created for:
436          (A) the estate of a current resident of the lot; or
437          (B) the parent, child, or sibling of the current resident of the lot;
438          (b) a provision that allows a lot owner who has a rental in the association before the
439     time the rental restriction described in Subsection (1)(a) is recorded with the county recorder of
440     the county in which the association is located to continue renting until:
441          (i) the lot owner occupies the lot;
442          (ii) an officer, owner, member, trustee, beneficiary, director, or person holding a
443     similar position of ownership or control of an entity or trust that holds an ownership interest in
444     the lot, occupies the lot; or
445          (iii) the lot is transferred; and
446          (c) a requirement that the association create, by rule or resolution, procedures to:

447          (i) determine and track the number of rentals and lots in the association subject to the
448     provisions described in Subsections (2)(a) and (b); and
449          (ii) ensure consistent administration and enforcement of the rental restrictions.
450          (3) For purposes of Subsection (2)(b)(iii), a transfer occurs when one or more of the
451     following occur:
452          (a) the conveyance, sale, or other transfer of a lot by deed;
453          (b) the granting of a life estate in the lot; or
454          (c) if the lot is owned by a limited liability company, corporation, partnership, or other
455     business entity, the sale or transfer of more than 75% of the business entity's share, stock,
456     membership interests, or partnership interests in a 12-month period.
457          (4) This section does not limit or affect residency age requirements for an association
458     that complies with the requirements of the Housing for Older Persons Act, 42 U.S.C. Sec.
459     3607.
460          (5) A declaration of covenants, conditions, and restrictions or amendments to the
461     declaration of covenants, conditions, and restrictions recorded before the transfer of the first lot
462     from the initial declarant may prohibit or restrict rentals without providing for the exceptions,
463     provisions, and procedures required under Subsection (2).
464          (6) (a) Subsections (1) through (5) do not apply to:
465          (i) an association that contains a time period unit as defined in Section 57-8-3;
466          (ii) any other form of timeshare interest as defined in Section 57-19-2; or
467          (iii) subject to Subsection (6)(b), an association that is formed before May 12, 2009,
468     unless, on or after May 12, 2015, the association:
469          (A) adopts a rental restriction or prohibition; or
470          (B) amends an existing rental restriction or prohibition.
471          (b) An association that adopts a rental restriction or amends an existing rental
472     restriction or prohibition before May 9, 2017, is not required to include the exemption
473     described in Subsection (2)(a)(iv).
474          (7) Notwithstanding this section, an association may restrict or prohibit rentals without
475     an exception described in Subsection (2) if:
476          (a) the restriction or prohibition receives unanimous approval by all lot owners; and
477          (b) when the restriction or prohibition requires an amendment to the association's

478     recorded declaration of covenants, conditions, and restrictions, the association fulfills all other
479     requirements for amending the recorded declaration of covenants, conditions, and restrictions
480     described in the association's governing documents.
481          (8) Except as provided in Subsection (9), an association may not require a lot owner
482     who owns a rental lot to:
483          (a) obtain the association's approval of a prospective renter;
484          (b) give the association:
485          (i) a copy of a rental application;
486          (ii) a copy of a renter's or prospective renter's credit information or credit report;
487          (iii) a copy of a renter's or prospective renter's background check; or
488          (iv) documentation to verify the renter's age; or
489          (c) pay an additional assessment, fine, or fee because the lot is a rental lot.
490          (9) (a) A lot owner who owns a rental lot shall give an association the documents
491     described in Subsection (8)(b) if the lot owner is required to provide the documents by court
492     order or as part of discovery under the Utah Rules of Civil Procedure.
493          (b) If an association's declaration of covenants, conditions, and restrictions lawfully
494     prohibits or restricts occupancy of the lots by a certain class of individuals, the association may
495     require a lot owner who owns a rental lot to give the association the information described in
496     Subsection (8)(b), if:
497          (i) the information helps the association determine whether the renter's occupancy of
498     the lot complies with the association's declaration of covenants, conditions, and restrictions;
499     and
500          (ii) the association uses the information to determine whether the renter's occupancy of
501     the lot complies with the association's declaration of covenants, conditions, and restrictions.
502          (10) Notwithstanding Subsection (1)(a), an association may not restrict or prohibit the
503     rental of an internal accessory dwelling unit, as defined in Section 10-9a-530, constructed
504     within a lot owner's residential lot, if the internal accessory dwelling unit complies with all
505     applicable:
506          (a) land use ordinances;
507          (b) building codes; and
508          (c) fire codes.

509          [(10)] (11) The provisions of Subsections (8) [and (9)] through (10) apply to an
510     association regardless of when the association is created.
511          Section 11. Section 57-8a-218 is amended to read:
512          57-8a-218. Equal treatment by rules required -- Limits on association rules and
513     design criteria.
514          (1) (a) Except as provided in Subsection (1)(b), a rule shall treat similarly situated lot
515     owners similarly.
516          (b) Notwithstanding Subsection (1)(a), a rule may:
517          (i) vary according to the level and type of service that the association provides to lot
518     owners;
519          (ii) differ between residential and nonresidential uses; and
520          (iii) for a lot that an owner leases for a term of less than 30 days, impose a reasonable
521     limit on the number of individuals who may use the common areas and facilities as guests of
522     the lot tenant or lot owner.
523          (2) (a) If a lot owner owns a rental lot and is in compliance with the association's
524     governing documents and any rule that the association adopts under Subsection (4), a rule may
525     not treat the lot owner differently because the lot owner owns a rental lot.
526          (b) Notwithstanding Subsection (2)(a), a rule may:
527          (i) limit or prohibit a rental lot owner from using the common areas for purposes other
528     than attending an association meeting or managing the rental lot;
529          (ii) if the rental lot owner retains the right to use the association's common areas, even
530     occasionally:
531          (A) charge a rental lot owner a fee to use the common areas; or
532          (B) for a lot that an owner leases for a term of less than 30 days, impose a reasonable
533     limit on the number of individuals who may use the common areas and facilities as guests of
534     the lot tenant or lot owner; or
535          (iii) include a provision in the association's governing documents that:
536          (A) requires each tenant of a rental lot to abide by the terms of the governing
537     documents; and
538          (B) holds the tenant and the rental lot owner jointly and severally liable for a violation
539     of a provision of the governing documents.

540          (3) (a) A rule criterion may not abridge the rights of a lot owner to display religious
541     and holiday signs, symbols, and decorations inside a dwelling on a lot.
542          (b) Notwithstanding Subsection (3)(a), the association may adopt time, place, and
543     manner restrictions with respect to displays visible from outside the dwelling or lot.
544          (4) (a) A rule may not regulate the content of political signs.
545          (b) Notwithstanding Subsection (4)(a):
546          (i) a rule may regulate the time, place, and manner of posting a political sign; and
547          (ii) an association design provision may establish design criteria for political signs.
548          (5) (a) A rule may not interfere with the freedom of a lot owner to determine the
549     composition of the lot owner's household.
550          (b) Notwithstanding Subsection (5)(a), an association may:
551          (i) require that all occupants of a dwelling be members of a single housekeeping unit;
552     or
553          (ii) limit the total number of occupants permitted in each residential dwelling on the
554     basis of the residential dwelling's:
555          (A) size and facilities; and
556          (B) fair use of the common areas.
557          (6) (a) A rule may not interfere with an activity of a lot owner within the confines of a
558     dwelling or lot, to the extent that the activity is in compliance with local laws and ordinances.
559          (b) Notwithstanding Subsection (6)(a), a rule may prohibit an activity within a dwelling
560     on an owner's lot if the activity:
561          (i) is not normally associated with a project restricted to residential use; or
562          (ii) (A) creates monetary costs for the association or other lot owners;
563          (B) creates a danger to the health or safety of occupants of other lots;
564          (C) generates excessive noise or traffic;
565          (D) creates unsightly conditions visible from outside the dwelling;
566          (E) creates an unreasonable source of annoyance to persons outside the lot; or
567          (F) if there are attached dwellings, creates the potential for smoke to enter another lot
568     owner's dwelling, the common areas, or limited common areas.
569          (c) If permitted by law, an association may adopt rules described in Subsection (6)(b)
570     that affect the use of or behavior inside the dwelling.

571          (7) (a) A rule may not, to the detriment of a lot owner and over the lot owner's written
572     objection to the board, alter the allocation of financial burdens among the various lots.
573          (b) Notwithstanding Subsection (7)(a), an association may:
574          (i) change the common areas available to a lot owner;
575          (ii) adopt generally applicable rules for the use of common areas; or
576          (iii) deny use privileges to a lot owner who:
577          (A) is delinquent in paying assessments;
578          (B) abuses the common areas; or
579          (C) violates the governing documents.
580          (c) This Subsection (7) does not permit a rule that:
581          (i) alters the method of levying assessments; or
582          (ii) increases the amount of assessments as provided in the declaration.
583          (8) (a) Subject to Subsection (8)(b), a rule may not:
584          (i) prohibit the transfer of a lot; or
585          (ii) require the consent of the association or board to transfer a lot.
586          (b) Unless contrary to a declaration, a rule may require a minimum lease term.
587          (9) (a) A rule may not require a lot owner to dispose of personal property that was in or
588     on a lot before the adoption of the rule or design criteria if the personal property was in
589     compliance with all rules and other governing documents previously in force.
590          (b) The exemption in Subsection (9)(a):
591          (i) applies during the period of the lot owner's ownership of the lot; and
592          (ii) does not apply to a subsequent lot owner who takes title to the lot after adoption of
593     the rule described in Subsection (9)(a).
594          (10) A rule or action by the association or action by the board may not unreasonably
595     impede a declarant's ability to satisfy existing development financing for community
596     improvements and right to develop:
597          (a) the project; or
598          (b) other properties in the vicinity of the project.
599          (11) A rule or association or board action may not interfere with:
600          (a) the use or operation of an amenity that the association does not own or control; or
601          (b) the exercise of a right associated with an easement.

602          (12) A rule may not divest a lot owner of the right to proceed in accordance with a
603     completed application for design review, or to proceed in accordance with another approval
604     process, under the terms of the governing documents in existence at the time the completed
605     application was submitted by the owner for review.
606          (13) Unless otherwise provided in the declaration, an association may by rule:
607          (a) regulate the use, maintenance, repair, replacement, and modification of common
608     areas;
609          (b) impose and receive any payment, fee, or charge for:
610          (i) the use, rental, or operation of the common areas, except limited common areas; and
611          (ii) a service provided to a lot owner;
612          (c) impose a charge for a late payment of an assessment; or
613          (d) provide for the indemnification of the association's officers and board consistent
614     with Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act.
615          (14) (a) Except as provided in Subsection (14)(b), a rule may not prohibit the owner of
616     a residential lot from constructing an internal accessory dwelling unit, as defined in Section
617     10-9a-530, within the owner's residential lot.
618          (b) Subsection (14)(a) does not apply if the construction would violate:
619          (i) a local land use ordinance;
620          (ii) a building code; or
621          (iii) a fire code.
622          [(14)] (15) A rule shall be reasonable.
623          [(15)] (16) A declaration, or an amendment to a declaration, may vary any of the
624     requirements of Subsections (1) through (13), except Subsection (1)(b)(ii).
625          [(16)] (17) A rule may not be inconsistent with a provision of the association's
626     declaration, bylaws, or articles of incorporation.
627          [(17)] (18) This section applies to an association regardless of when the association is
628     created.