Representative Raymond P. Ward proposes the following substitute bill:


1     
SINGLE-FAMILY HOUSING MODIFICATIONS

2     
2021 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Raymond P. Ward

5     
Senate Sponsor: Jacob L. Anderegg

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          ▸     allows a municipality or county to punish an individual who lists or offers a certain
15     licensed or permitted accessory dwelling unit as a short-term rental;
16          ▸     allows municipalities and counties to require specified physical changes to certain
17     accessory dwelling units;
18          ▸     in any single-family residential land use zone:
19               •     requires municipalities and counties to classify certain accessory dwelling units
20     as a permitted land use; and
21               •     prohibits municipalities and counties from establishing restrictions or
22     requirements for certain accessory dwelling units with limited exceptions;
23          ▸     allows a municipality or county to hold a lien against real property containing
24     certain accessory dwelling units in certain circumstances;
25          ▸     provides for statewide amendments to the International Residential Code related to

26     accessory dwelling units;
27          ▸     requires the executive director of the Olene Walker Housing Loan Fund to establish
28     a two-year pilot program to provide loan guarantees for certain loans related to
29     accessory dwelling units;
30          ▸     prevents a homeowners association from prohibiting the construction or rental of
31     certain accessory dwelling units; and
32          ▸     makes technical and conforming changes.
33     Money Appropriated in this Bill:
34          None
35     Other Special Clauses:
36          This bill provides a special effective date.
37     Utah Code Sections Affected:
38     AMENDS:
39          10-8-85.4, as enacted by Laws of Utah 2017, Chapter 335
40          10-9a-505.5, as last amended by Laws of Utah 2012, Chapter 172
41          10-9a-511.5, as enacted by Laws of Utah 2015, Chapter 205
42          15A-3-202, as last amended by Laws of Utah 2020, Chapter 441
43          15A-3-204, as last amended by Laws of Utah 2016, Chapter 249
44          15A-3-206, as last amended by Laws of Utah 2018, Chapter 186
45          17-27a-505.5, as last amended by Laws of Utah 2015, Chapter 465
46          17-27a-510.5, as enacted by Laws of Utah 2015, Chapter 205
47          17-50-338, as enacted by Laws of Utah 2017, Chapter 335
48          35A-8-505, as last amended by Laws of Utah 2020, Chapter 241
49          57-8a-209, as last amended by Laws of Utah 2018, Chapter 395
50          57-8a-218, as last amended by Laws of Utah 2017, Chapter 131
51     ENACTS:
52          10-9a-530, Utah Code Annotated 1953
53          17-27a-526, Utah Code Annotated 1953
54          35A-8-504.5, Utah Code Annotated 1953
55     

56     Be it enacted by the Legislature of the state of Utah:

57          Section 1. Section 10-8-85.4 is amended to read:
58          10-8-85.4. Ordinances regarding short-term rentals -- Prohibition on ordinances
59     restricting speech on short-term rental websites.
60          (1) As used in this section:
61          (a) "Internal accessory dwelling unit" means the same as that term is defined in Section
62     10-9a-511.5.
63          [(a)] (b) "Residential unit" means a residential structure or any portion of a residential
64     structure that is occupied as a residence.
65          [(b)] (c) "Short-term rental" means a residential unit or any portion of a residential unit
66     that the owner of record or the lessee of the residential unit offers for occupancy for fewer than
67     30 consecutive days.
68          [(c)] (d) "Short-term rental website" means a website that:
69          (i) allows a person to offer a short-term rental to one or more prospective renters; and
70          (ii) facilitates the renting of, and payment for, a short-term rental.
71          (2) Notwithstanding Section 10-9a-501 or Subsection 10-9a-503(1), a legislative body
72     may not:
73          (a) enact or enforce an ordinance that prohibits an individual from listing or offering a
74     short-term rental on a short-term rental website; or
75          (b) use an ordinance that prohibits the act of renting a short-term rental to fine, charge,
76     prosecute, or otherwise punish an individual solely for the act of listing or offering a short-term
77     rental on a short-term rental website.
78          (3) Subsection (2) does not apply to an individual who:
79          (a) obtains or is required to obtain a permit or license from the municipality to rent an
80     internal accessory dwelling unit; and
81          (b) lists or offers the unit described in Subsection (3)(a) as a short-term rental on a
82     short-term rental website.
83          Section 2. Section 10-9a-505.5 is amended to read:
84          10-9a-505.5. Limit on single family designation.
85          (1) As used in this section, "single-family limit" means the number of [unrelated]
86     individuals allowed to occupy each residential unit that is recognized by a land use authority in
87     a zone permitting occupancy by a single family.

88          (2) A municipality may not adopt a single-family limit that is less than:
89          (a) three, if the municipality has within its boundary:
90          (i) a state university; or
91          (ii) a private university with a student population of at least 20,000; or
92          (b) four, for each other municipality.
93          Section 3. Section 10-9a-511.5 is amended to read:
94          10-9a-511.5. Changes to dwellings -- Egress windows.
95          (1) [For purposes of] As used in this section[, "rental]:
96          (a) "Internal accessory dwelling unit" means an accessory dwelling unit created:
97          (i) within a primary dwelling;
98          (ii) within the footprint of the primary dwelling described in Subsection (1)(a)(i) at the
99     time the internal accessory dwelling unit is created; and
100          (iii) for the purpose of offering a long-term rental of 30 consecutive days or longer.
101          (b) "Primary dwelling" means a single-family dwelling that:
102          (i) is detached; and
103          (ii) is occupied as the primary residence of the owner of record.
104          (c) "Rental dwelling" means the same as that term is defined in Section 10-8-85.5.
105          (2) A municipal ordinance adopted under Section 10-1-203.5 may not:
106          (a) require physical changes in a structure with a legal nonconforming rental dwelling
107     use unless the change is for:
108          (i) the reasonable installation of:
109          (A) a smoke detector that is plugged in or battery operated;
110          (B) a ground fault circuit interrupter protected outlet on existing wiring;
111          (C) street addressing;
112          (D) except as provided in Subsection (3), an egress bedroom window if the existing
113     bedroom window is smaller than that required by current State Construction Code;
114          (E) an electrical system or a plumbing system, if the existing system is not functioning
115     or is unsafe as determined by an independent electrical or plumbing professional who is
116     licensed in accordance with Title 58, Occupations and Professions;
117          (F) hand or guard rails; or
118          (G) occupancy separation doors as required by the International Residential Code; or

119          (ii) the abatement of a structure; or
120          (b) be enforced to terminate a legal nonconforming rental dwelling use.
121          (3) (a) A municipality may not require physical changes to install an egress or
122     emergency escape window in an existing bedroom that complied with the State Construction
123     Code in effect at the time the bedroom was finished if:
124          [(a)] (i) the dwelling is an owner-occupied dwelling or a rental dwelling that is:
125          [(i)] (A) a detached one-, two-, three-, or four-family dwelling; or
126          [(ii)] (B) a town home that is not more than three stories above grade with a separate
127     means of egress; and
128          [(b) (i)] (ii) (A) the window in the existing bedroom is smaller than that required by
129     current State Construction Code; and
130          [(ii)] (B) the change would compromise the structural integrity of the structure or could
131     not be completed in accordance with current State Construction Code, including set-back and
132     window well requirements.
133          (b) Subsection (3)(a) does not apply to an internal accessory dwelling unit.
134          (4) Nothing in this section prohibits a municipality from:
135          (a) regulating the style of window that is required or allowed in a bedroom;
136          (b) requiring that a window in an existing bedroom be fully openable if the openable
137     area is less than required by current State Construction Code; or
138          (c) requiring that an existing window not be reduced in size if the openable area is
139     smaller than required by current State Construction Code.
140          Section 4. Section 10-9a-530 is enacted to read:
141          10-9a-530. Internal accessory dwelling units.
142          (1) As used in this section:
143          (a) "Internal accessory dwelling unit" means an accessory dwelling unit created:
144          (i) within a primary dwelling;
145          (ii) within the footprint of the primary dwelling described in Subsection (1)(a)(i) at the
146     time the internal accessory dwelling unit is created; and
147          (iii) for the purpose of offering a long-term rental of 30 consecutive days or longer.
148          (b) "Primary dwelling" means a single-family dwelling that:
149          (i) is detached; and

150          (ii) is occupied as the primary residence of the owner of record.
151          (2) In any area zoned primarily for residential use:
152          (a) the use of an internal accessory dwelling unit is a permitted use; and
153          (b) except as provided in Subsection (4), a municipality may not establish any
154     restrictions or requirements for the construction or use of one internal accessory dwelling unit
155     within a primary dwelling, including a restriction or requirement governing:
156          (i) the size of the internal accessory dwelling unit in relation to the primary dwelling;
157          (ii) total lot size; or
158          (iii) street frontage.
159          (3) An internal accessory dwelling unit shall comply with all applicable building,
160     health, and fire codes.
161          (4) A municipality may:
162          (a) prohibit the installation of a separate utility meter for an internal accessory dwelling
163     unit;
164          (b) require that an internal accessory dwelling unit be designed in a manner that does
165     not change the appearance of the primary dwelling as a single-family dwelling;
166          (c) require a primary dwelling:
167          (i) to include one additional on-site parking space for an internal accessory dwelling
168     unit, regardless of whether the primary dwelling is existing or new construction; and
169          (ii) to replace any parking spaces contained within a garage or carport if an internal
170     accessory dwelling unit is created within the garage or carport;
171          (d) prohibit the creation of an internal accessory dwelling unit within a mobile home as
172     defined in Section 57-16-3;
173          (e) require the owner of a primary dwelling to obtain a permit or license for renting an
174     internal accessory dwelling unit;
175          (f) prohibit the creation of an internal accessory dwelling unit within a zoning district
176     covering an area that is equivalent to:
177          (i) 25% or less of the total area in the municipality that is zoned primarily for
178     residential use; or
179          (ii) 67% or less of the total area in the municipality that is zoned primarily for
180     residential use, if the main campus of a state or private university with a student population of

181     10,000 or more is located within the municipality;
182          (g) prohibit the creation of an internal accessory dwelling unit if the primary dwelling
183     is served by a failing septic tank;
184          (h) prohibit the creation of an internal accessory dwelling unit if the lot containing the
185     primary dwelling is 6,000 square feet or less in size;
186          (i) prohibit the rental of an internal accessory dwelling unit for a period of less than 30
187     consecutive days;
188          (j) prohibit the rental of an internal accessory dwelling unit if the internal accessory
189     dwelling unit is located in a dwelling that is not occupied as the owner's primary residence; and
190          (k) hold a lien against a property that contains an internal accessory dwelling unit in
191     accordance with Subsection (5).
192          (5) (a) In addition to any other legal or equitable remedies available to a municipality, a
193     municipality may hold a lien against a property that contains an internal accessory dwelling
194     unit if:
195          (i) the owner of the property violates any of the provisions of this section or any
196     ordinance adopted under Subsection (4);
197          (ii) the municipality provides a written notice of violation in accordance with
198     Subsection (5)(b);
199          (iii) the owner fails to cure the violation within the time period prescribed in the
200     written notice of violation under Subsection (5)(b);
201          (iv) the municipality provides a written notice of lien in accordance with Subsection
202     (5)(c); and
203          (v) the municipality records a copy of the written notice of lien described in Subsection
204     (5)(a)(iv) with the county recorder of the county in which the property is located.
205          (b) The written notice of violation shall:
206          (i) describe the specific violation;
207          (ii) provide the owner of the internal accessory dwelling unit a reasonable opportunity
208     to cure the violation that is:
209          (A) no less than 14 days after the day on which the municipality sends the written
210     notice of violation, if the violation results from the owner renting the internal accessory
211     dwelling unit for a period of less than 30 consecutive days; or

212          (B) no less than 30 days after the day on which the municipality sends the written
213     notice of violation, for any other violation;
214          (iii) state that if the owner of the property fails to cure the violation within the time
215     period described in Subsection (5)(b)(ii), the municipality may hold a lien against the property
216     in an amount of up to $100 for each day of violation after the day on which the opportunity to
217     cure the violation expires;
218          (iv) be mailed to:
219          (A) the property's owner of record; and
220          (B) any other individual designated to receive notice in the owner's license or permit
221     records; and
222          (v) be posted on the property.
223          (c) The written notice of lien shall:
224          (i) comply with the requirements of Section 38-12-102;
225          (ii) state that the property is subject to a lien;
226          (iii) specify the lien amount, in an amount of up to $100 for each day of violation after
227     the day on which the opportunity to cure the violation expires;
228          (iv) be mailed to:
229          (A) the property's owner of record; and
230          (B) any other individual designated to receive notice in the owner's license or permit
231     records; and
232          (v) be posted on the property.
233          (d) If an owner cures a violation within the time period prescribed in the written notice
234     of violation under Subsection (5)(b), the municipality may not hold a lien against the property,
235     or impose any penalty or fee on the owner, in relation to the specific violation described in the
236     written notice of violation under Subsection (5)(b).
237          Section 5. Section 15A-3-202 is amended to read:
238          15A-3-202. Amendments to Chapters 1 through 5 of IRC.
239          (1) In IRC, Section R102, a new Section R102.7.2 is added as follows: "R102.7.2
240     Physical change for bedroom window egress. A structure whose egress window in an existing
241     bedroom is smaller than required by this code, and that complied with the construction code in
242     effect at the time that the bedroom was finished, is not required to undergo a physical change to

243     conform to this code if the change would compromise the structural integrity of the structure or
244     could not be completed in accordance with other applicable requirements of this code,
245     including setback and window well requirements."
246          (2) In IRC, Section R108.3, the following sentence is added at the end of the section:
247     "The building official shall not request proprietary information."
248          (3) In IRC, Section 109:
249          (a) A new IRC, Section 109.1.5, is added as follows: "R109.1.5 Weather-resistant
250     exterior wall envelope inspections. An inspection shall be made of the weather-resistant
251     exterior wall envelope as required by Section R703.1 and flashings as required by Section
252     R703.8 to prevent water from entering the weather-resistive barrier."
253          (b) The remaining sections are renumbered as follows: R109.1.6 Other inspections;
254     R109.1.6.1 Fire- and smoke-resistance-rated construction inspection; R109.1.6.2 Reinforced
255     masonry, insulating concrete form (ICF) and conventionally formed concrete wall inspection;
256     and R109.1.7 Final inspection.
257          (4) IRC, Section R114.1, is deleted and replaced with the following: "R114.1 Notice to
258     owner. Upon notice from the building official that work on any building or structure is being
259     prosecuted contrary to the provisions of this code or other pertinent laws or ordinances or in an
260     unsafe and dangerous manner, such work shall be immediately stopped. The stop work order
261     shall be in writing and shall be given to the owner of the property involved, or to the owner's
262     agent or to the person doing the work; and shall state the conditions under which work will be
263     permitted to resume."
264          (5) In IRC, Section R202, the following definition is added: "ACCESSORY
265     DWELLING UNIT: A habitable living unit created within the existing footprint of a primary
266     owner-occupied single-family dwelling."
267          [(5)] (6) In IRC, Section R202, the following definition is added: "CERTIFIED
268     BACKFLOW PREVENTER ASSEMBLY TESTER: A person who has shown competence to
269     test Backflow prevention assemblies to the satisfaction of the authority having jurisdiction
270     under Utah Code, Subsection 19-4-104(4)."
271          [(6)] (7) In IRC, Section R202, the definition of "Cross Connection" is deleted and
272     replaced with the following: "CROSS CONNECTION. Any physical connection or potential
273     connection or arrangement between two otherwise separate piping systems, one of which

274     contains potable water and the other either water of unknown or questionable safety or steam,
275     gas, or chemical, whereby there exists the possibility for flow from one system to the other,
276     with the direction of flow depending on the pressure differential between the two systems (see
277     "Backflow, Water Distribution")."
278          [(7)] (8) In IRC, Section 202, in the definition for gray water a comma is inserted after
279     the word "washers"; the word "and" is deleted; and the following is added to the end: "and
280     clear water wastes which have a pH of 6.0 to 9.0; are non-flammable; non-combustible;
281     without objectionable odors; non-highly pigmented; and will not interfere with the operation of
282     the sewer treatment facility."
283          [(8)] (9) In IRC, Section R202, the definition of "Potable Water" is deleted and
284     replaced with the following: "POTABLE WATER. Water free from impurities present in
285     amounts sufficient to cause disease or harmful physiological effects and conforming to the
286     Utah Code, Title 19, Chapter 4, Safe Drinking Water Act, and Title 19, Chapter 5, Water
287     Quality Act, and the regulations of the public health authority having jurisdiction."
288          [(9)] (10) IRC, Figure R301.2(5), is deleted and replaced with R301.2(5) as follows:
289     
"TABLE R301.2(5)
290     
GROUND SNOW LOADS FOR SELECTED LOCATIONS IN UTAH
291      City/TownCountyGround Snow Load (lb/ft2)Elevation (ft)
292      BeaverBeaver355886
293      Brigham CityBox Elder424423
294      Castle DaleEmery325669
295      CoalvilleSummit575581
296      DuchesneDuchesne395508
297      FarmingtonDavis354318
298      FillmoreMillard305138
299      Heber CityWasatch605604
300      JunctionPiute276030
301      KanabKane254964
302      LoaWayne377060
303      LoganCache434531
304      ManilaDaggett266368
305      MantiSanpete375620
306      MoabGrand214029
307      MonticelloSan Juan677064
308      MorganMorgan525062
309      NephiJuab395131
310      OgdenWeber374334
311      PanguitchGarfield416630
312      ParowanIron326007
313      PriceCarbon315558
314      ProvoUtah314541
315      RandolphRich506286
316      RichfieldSevier275338
317      St. GeorgeWashington212585
318      Salt Lake CitySalt Lake284239
319      TooeleTooele355029
320      VernalUintah395384
321      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.
322          [(10)] (11) IRC, Section R301.6, is deleted and replaced with the following: "R301.6
323     Utah Snow Loads. The snow loads specified in Table R301.2(5b) shall be used for the
324     jurisdictions identified in that table. Otherwise, for other locations in Utah, see Bean, B.,

325     Maguire, M., Sun, Y. (2018), "The Utah Snow Load Study," Utah State University Civil and
326     Environmental Engineering Faculty Publications, Paper 3589, http://utahsnowload.usu.edu/, for
327     ground snow load values."
328          [(11)] (12) In IRC, Section R302.2, the following sentence is added after the second
329     sentence: "When an access/maintenance agreement or easement is in place, plumbing,
330     mechanical ducting, schedule 40 steel gas pipe, and electric service conductors including
331     feeders, are permitted to penetrate the common wall at grade, above grade, or below grade."
332          (13) In IRC, Section R302.3, a new exception 3 is added as follows: "3. Accessory
333     dwelling units separated by walls or floor assemblies protected by not less than 1/2-inch (12.7
334     mm) gypsum board or equivalent on each side of the wall or bottom of the floor assembly are
335     exempt from the requirements of this section."
336          [(12)] (14) In IRC, Section R302.5.1, the words "self-closing device" are deleted and
337     replaced with "self-latching hardware."
338          [(13)] (15) IRC, Section R302.13, is deleted.
339          [(14)] (16) In IRC, Section R303.4, the number "5" is changed to "3" in the first
340     sentence.
341          (17) In IRC, Section R310.6, in the exception, the words "or accessory dwelling units"
342     are added after the words "sleeping rooms".
343          [(15)] (18) IRC, Sections R311.7.4 through R311.7.5.3, are deleted and replaced with
344     the following: "R311.7.4 Stair treads and risers. R311.7.5.1 Riser height. The maximum riser
345     height shall be 8 inches (203 mm). The riser shall be measured vertically between leading
346     edges of the adjacent treads. The greatest riser height within any flight of stairs shall not
347     exceed the smallest by more than 3/8 inch (9.5 mm).
348     R311.7.5.2 Tread depth. The minimum tread depth shall be 9 inches (228 mm). The tread
349     depth shall be measured horizontally between the vertical planes of the foremost projection of
350     adjacent treads and at a right angle to the tread's leading edge. The greatest tread depth within
351     any flight of stairs shall not exceed the smallest by more than 3/8 inch (9.5 mm). Winder
352     treads shall have a minimum tread depth of 10 inches (254 mm) measured as above at a point
353     12 inches (305 mm) from the side where the treads are narrower. Winder treads shall have a
354     minimum tread depth of 6 inches (152 mm) at any point. Within any flight of stairs, the
355     greatest winder tread depth at the 12-inch (305 mm) walk line shall not exceed the smallest by

356     more than 3/8 inch (9.5 mm).
357     R311.7.5.3 Profile. The radius of curvature at the leading edge of the tread shall be no greater
358     than 9/16 inch (14.3 mm). A nosing not less than 3/4 inch (19 mm) but not more than 1 1/4
359     inches (32 mm) shall be provided on stairways with solid risers. The greatest nosing projection
360     shall not exceed the smallest nosing projection by more than 3/8 inch (9.5 mm) between two
361     stories, including the nosing at the level of floors and landings. Beveling of nosing shall not
362     exceed 1/2 inch (12.7 mm). Risers shall be vertical or sloped from the underside of the leading
363     edge of the tread above at an angle not more than 30 degrees (0.51 rad) from the vertical. Open
364     risers are permitted, provided that the opening between treads does not permit the passage of a
365     4-inch diameter (102 mm) sphere.
366     Exceptions.
367     1. A nosing is not required where the tread depth is a minimum of 10 inches (254 mm).
368     2. The opening between adjacent treads is not limited on stairs with a total rise of 30 inches
369     (762 mm) or less."
370          [(16)] (19) IRC, Section R312.2, is deleted.
371          [(17)] (20) IRC, Sections R313.1 through R313.2.1, are deleted and replaced with the
372     following: "R313.1 Design and installation. When installed, automatic residential fire
373     sprinkler systems for townhouses or one- and two-family dwellings shall be designed and
374     installed in accordance with Section P2904 or NFPA 13D."
375          (21) In IRC, Section R314.2.2, the words "or accessory dwelling units" are added after
376     the words "sleeping rooms".
377          (22) In IRC, Section R315.2.2, the words "or accessory dwelling units" are added after
378     the words "sleeping rooms".
379          [(18)] (23) In IRC, Section 315.3, the following words are added to the first sentence
380     after the word "installed": "on each level of the dwelling unit and."
381          [(19)] (24) In IRC, Section R315.5, a new exception, 3, is added as follows:
382     "3. Hard wiring of carbon monoxide alarms in existing areas shall not be required where the
383     alterations or repairs do not result in the removal of interior wall or ceiling finishes exposing
384     the structure, unless there is an attic, crawl space or basement available which could provide
385     access for hard wiring, without the removal of interior finishes."
386          [(20)] (25) A new IRC, Section R315.7, is added as follows: " R315.7 Interconnection.

387     Where more than one carbon monoxide alarm is required to be installed within an individual
388     dwelling unit in accordance with Section R315.1, the alarm devices shall be interconnected in
389     such a manner that the actuation of one alarm will activate all of the alarms in the individual
390     unit. Physical interconnection of smoke alarms shall not be required where listed wireless
391     alarms are installed and all alarms sound upon activation of one alarm.
392     Exception: Interconnection of carbon monoxide alarms in existing areas shall not be required
393     where alterations or repairs do not result in removal of interior wall or ceiling finishes exposing
394     the structure, unless there is an attic, crawl space or basement available which could provide
395     access for interconnection without the removal of interior finishes."
396          [(21)] (26) In IRC, Section R317.1.5, the period is deleted and the following language
397     is added to the end of the paragraph: "or treated with a moisture resistant coating."
398          [(22)] (27) In IRC, Section 326.1, the words "residential provisions of the" are added
399     after the words "pools and spas shall comply with".
400          [(23)] (28) In IRC, Section R403.1.6, a new Exception 3 is added as follows: "3.
401     When anchor bolt spacing does not exceed 32 inches (813 mm) apart, anchor bolts may be
402     placed with a minimum of two bolts per plate section located not less than 4 inches (102 mm)
403     from each end of each plate section at interior bearing walls, interior braced wall lines, and at
404     all exterior walls."
405          [(24)] (29) In IRC, Section R403.1.6.1, a new exception is added at the end of Item 2
406     and Item 3 as follows: "Exception: When anchor bolt spacing does not exceed 32 inches (816
407     mm) apart, anchor bolts may be placed with a minimum of two bolts per plate section located
408     not less than 4 inches (102 mm) from each end of each plate section at interior bearing walls,
409     interior braced wall lines, and at all exterior walls."
410          [(25)] (30) In IRC, Section R404.1, a new exception is added as follows: "Exception:
411     As an alternative to complying with Sections R404.1 through R404.1.5.3, concrete and
412     masonry foundation walls may be designed in accordance with IBC Sections 1807.1.5 and
413     1807.1.6 as amended in Section 1807.1.6.4 and Table 1807.1.6.4 under these rules."
414          [(26)] (31) In IRC, Section R405.1, a new exception is added as follows: "Exception:
415     When a geotechnical report has been provided for the property, a drainage system is not
416     required unless the drainage system is required as a condition of the geotechnical report. The
417     geological report shall make a recommendation regarding a drainage system."

418          Section 6. Section 15A-3-204 is amended to read:
419          15A-3-204. Amendments to Chapters 16 through 25 of IRC.
420          (1) In IRC, Section M1602.2, a new exception is added at the end of Item 6 as follows:
421     "Exception: The discharge of return air from an accessory dwelling unit into another dwelling
422     unit, or into an accessory dwelling unit from another dwelling unit, is not prohibited."
423          (2) A new IRC, Section G2401.2, is added as follows: "G2401.2 Meter Protection.
424     Fuel gas services shall be in an approved location and/or provided with structures designed to
425     protect the fuel gas meter and surrounding piping from physical damage, including falling,
426     moving, or migrating ice and snow. If an added structure is used, it must provide access for
427     service and comply with the IBC or the IRC."
428          Section 7. Section 15A-3-206 is amended to read:
429          15A-3-206. Amendments to Chapters 36 through 44 and Appendix F of IRC.
430          (1) In IRC, Section E3601.6.2, a new exception is added as follows: "Exception: An
431     occupant of an accessory dwelling unit is not required to have access to the disconnect serving
432     the dwelling unit in which they reside."
433          [(1)] (2) In IRC, Section E3705.4.5, the following words are added after the word
434     "assemblies": "with ungrounded conductors 10 AWG and smaller".
435          [(2)] (3) In IRC, Section E3901.9, the following exception is added:
436     "Exception: Receptacles or other outlets adjacent to the exterior walls of the garage, outlets
437     adjacent to an exterior wall of the garage, or outlets in a storage room with entry from the
438     garage may be connected to the garage branch circuit."
439          [(3)] (4) IRC, Section E3902.16 is deleted.
440          [(4)] (5) In Section E3902.17:
441          (a) following the word "Exception" the number "1." is added; and
442          (b) at the end of the section, the following sentences are added:
443     "2. This section does not apply for a simple move or an extension of a branch circuit or an
444     outlet which does not significantly increase the existing electrical load. This exception does
445     not include changes involving remodeling or additions to a residence."
446          [(5)] (6) IRC, Chapter 44, is amended by adding the following reference standard:
447      "Standard reference
number
TitleReferenced in code
section number
448      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"
449          [(6)] (7) (a) When passive radon controls or portions thereof are voluntarily installed,
450     the voluntary installation shall comply with Appendix F of the IRC.
451          (b) An additional inspection of a voluntary installation described in Subsection [(6)]
452     (7)(a) is not required.
453          Section 8. Section 17-27a-505.5 is amended to read:
454          17-27a-505.5. Limit on single family designation.
455          (1) As used in this section, "single-family limit" means the number of [unrelated]
456     individuals allowed to occupy each residential unit that is recognized by a land use authority in
457     a zone permitting occupancy by a single family.
458          (2) A county may not adopt a single-family limit that is less than:
459          (a) three, if the county has within its unincorporated area:
460          (i) a state university;
461          (ii) a private university with a student population of at least 20,000; or
462          (iii) a mountainous planning district; or
463          (b) four, for each other county.
464          Section 9. Section 17-27a-510.5 is amended to read:
465          17-27a-510.5. Changes to dwellings -- Egress windows.
466          (1) [For purposes of] As used in this section[, "rental]:
467          (a) "Internal accessory dwelling unit" means an accessory dwelling unit created:
468          (i) within a primary dwelling;
469          (ii) within the footprint of the primary dwelling described in Subsection (1)(a)(i) at the
470     time the internal accessory dwelling unit is created; and
471          (iii) for the purpose of offering a long-term rental of 30 consecutive days or longer.
472          (b) "Primary dwelling" means a single-family dwelling that:
473          (i) is detached; and
474          (ii) is occupied as the primary residence of the owner of record.
475          (c) "Rental dwelling" means the same as that term is defined in Section 10-8-85.5.

476          (2) A county ordinance adopted under Section 10-1-203.5 may not:
477          (a) require physical changes in a structure with a legal nonconforming rental dwelling
478     use unless the change is for:
479          (i) the reasonable installation of:
480          (A) a smoke detector that is plugged in or battery operated;
481          (B) a ground fault circuit interrupter protected outlet on existing wiring;
482          (C) street addressing;
483          (D) except as provided in Subsection (3), an egress bedroom window if the existing
484     bedroom window is smaller than that required by current State Construction Code;
485          (E) an electrical system or a plumbing system, if the existing system is not functioning
486     or is unsafe as determined by an independent electrical or plumbing professional who is
487     licensed in accordance with Title 58, Occupations and Professions;
488          (F) hand or guard rails; or
489          (G) occupancy separation doors as required by the International Residential Code; or
490          (ii) the abatement of a structure; or
491          (b) be enforced to terminate a legal nonconforming rental dwelling use.
492          (3) (a) A county may not require physical changes to install an egress or emergency
493     escape window in an existing bedroom that complied with the State Construction Code in
494     effect at the time the bedroom was finished if:
495          [(a)] (i) the dwelling is an owner-occupied dwelling or a rental dwelling that is:
496          [(i)] (A) a detached one-, two-, three-, or four-family dwelling; or
497          [(ii)] (B) a town home that is not more than three stories above grade with a separate
498     means of egress; and
499          [(b) (i)] (ii) (A) the window in the existing bedroom is smaller than that required by
500     current State Construction Code; and
501          [(ii)] (B) the change would compromise the structural integrity of the structure or could
502     not be completed in accordance with current State Construction Code, including set-back and
503     window well requirements.
504          (b) Subsection (3)(a) does not apply to an internal accessory dwelling unit.
505          (4) Nothing in this section prohibits a county from:
506          (a) regulating the style of window that is required or allowed in a bedroom;

507          (b) requiring that a window in an existing bedroom be fully openable if the openable
508     area is less than required by current State Construction Code; or
509          (c) requiring that an existing window not be reduced in size if the openable area is
510     smaller than required by current State Construction Code.
511          Section 10. Section 17-27a-526 is enacted to read:
512          17-27a-526. Internal accessory dwelling units.
513          (1) As used in this section:
514          (a) "Internal accessory dwelling unit" means an accessory dwelling unit created:
515          (i) within a primary dwelling;
516          (ii) within the footprint of the primary dwelling described in Subsection (1)(a)(i) at the
517     time the internal accessory dwelling unit is created; and
518          (iii) for the purpose of offering a long-term rental of 30 consecutive days or longer.
519          (b) "Primary dwelling" means a single-family dwelling that:
520          (i) is detached; and
521          (ii) is occupied as the primary residence of the owner of record.
522          (2) In any area zoned primarily for residential use:
523          (a) the use of an internal accessory dwelling unit is a permitted use; and
524          (b) except as provided in Subsection (4), a county may not establish any restrictions or
525     requirements for the construction or use of one internal accessory dwelling unit within a
526     primary dwelling, including a restriction or requirement governing:
527          (i) the size of the internal accessory dwelling unit in relation to the primary dwelling;
528          (ii) total lot size; or
529          (iii) street frontage.
530          (3) An internal accessory dwelling unit shall comply with all applicable building,
531     health, and fire codes.
532          (4) A county may:
533          (a) prohibit the installation of a separate utility meter for an internal accessory dwelling
534     unit;
535          (b) require that an internal accessory dwelling unit be designed in a manner that does
536     not change the appearance of the primary dwelling as a single-family dwelling;
537          (c) require a primary dwelling:

538          (i) to include one additional on-site parking space for an internal accessory dwelling
539     unit, regardless of whether the primary dwelling is existing or new construction; and
540          (ii) to replace any parking spaces contained within a garage or carport if an internal
541     accessory dwelling unit is created within the garage or carport;
542          (d) prohibit the creation of an internal accessory dwelling unit within a mobile home as
543     defined in Section 57-16-3;
544          (e) require the owner of a primary dwelling to obtain a permit or license for renting an
545     internal accessory dwelling unit;
546          (f) prohibit the creation of an internal accessory dwelling unit within a zoning district
547     covering an area that is equivalent to:
548          (i) 25% or less of the total unincorporated area in the municipality that is zoned
549     primarily for residential use; or
550          (ii) 67% or less of the total unincorporated area in the county that is zoned primarily
551     for residential use, if the main campus of a state or private university with a student population
552     of 10,000 or more is located within the unincorporated area of the county;
553          (g) prohibit the creation of an internal accessory dwelling unit if the primary dwelling
554     is served by a failing septic tank;
555          (h) prohibit the creation of an internal accessory dwelling unit if the lot containing the
556     primary dwelling is 6,000 square feet or less in size;
557          (i) prohibit the rental of an internal accessory dwelling unit for a period of less than 30
558     consecutive days;
559          (j) prohibit the rental of an internal accessory dwelling unit if the internal accessory
560     dwelling unit is located in a dwelling that is not occupied as the owner's primary residence; and
561          (k) hold a lien against a property that contains an internal accessory dwelling unit in
562     accordance with Subsection (5).
563          (5) (a) In addition to any other legal or equitable remedies available to a county, a
564     county may hold a lien against a property that contains an internal accessory dwelling unit if:
565          (i) the owner of the property violates any of the provisions of this section or any
566     ordinance adopted under Subsection (4);
567          (ii) the county provides a written notice of violation in accordance with Subsection
568     (5)(b);

569          (iii) the owner fails to cure the violation within the time period prescribed in the
570     written notice of violation under Subsection (5)(b);
571          (iv) the county provides a written notice of lien in accordance with Subsection (5)(c);
572     and
573          (v) the county records a copy of the written notice of lien described in Subsection
574     (5)(a)(iv) with the county recorder of the county in which the property is located.
575          (b) The written notice of violation shall:
576          (i) describe the specific violation;
577          (ii) provide the owner of the internal accessory dwelling unit a reasonable opportunity
578     to cure the violation that is:
579          (A) no less than 14 days after the day on which the county sends the written notice of
580     violation, if the violation results from the owner renting the internal accessory dwelling unit for
581     a period of less than 30 consecutive days; or
582          (B) no less than 30 days after the day on which the county sends the written notice of
583     violation, for any other violation; and
584          (iii) state that if the owner of the property fails to cure the violation within the time
585     period described in Subsection (5)(b)(ii), the county may hold a lien against the property in an
586     amount of up to $100 for each day of violation after the day on which the opportunity to cure
587     the violation expires;
588          (iv) be mailed to:
589          (A) the property's owner of record; and
590          (B) any other individual designated to receive notice in the owner's license or permit
591     records; and
592          (v) be posted on the property.
593          (c) The written notice of lien shall:
594          (i) comply with the requirements of Section 38-12-102;
595          (ii) describe the specific violation;
596          (iii) specify the lien amount, in an amount of up to $100 for each day of violation after
597     the day on which the opportunity to cure the violation expires;
598          (iv) be mailed to:
599          (A) the property's owner of record; and

600          (B) any other individual designated to receive notice in the owner's license or permit
601     records; and
602          (v) be posted on the property.
603          (d) If an owner cures a violation within the time period prescribed in the written notice
604     of violation under Subsection (5)(b), the county may not hold a lien against the property, or
605     impose any penalty or fee on the owner, in relation to the specific violation described in the
606     written notice of violation under Subsection (5)(b).
607          Section 11. Section 17-50-338 is amended to read:
608          17-50-338. Ordinances regarding short-term rentals -- Prohibition on ordinances
609     restricting speech on short-term rental websites.
610          (1) As used in this section:
611          (a) "Internal accessory dwelling unit" means the same as that term is defined in Section
612     10-9a-511.5.
613          [(a)] (b) "Residential unit" means a residential structure or any portion of a residential
614     structure that is occupied as a residence.
615          [(b)] (c) "Short-term rental" means a residential unit or any portion of a residential unit
616     that the owner of record or the lessee of the residential unit offers for occupancy for fewer than
617     30 consecutive days.
618          [(c)] (d) "Short-term rental website" means a website that:
619          (i) allows a person to offer a short-term rental to one or more prospective renters; and
620          (ii) facilitates the renting of, and payment for, a short-term rental.
621          (2) Notwithstanding Section 17-27a-501 or Subsection 17-27a-503(1), a legislative
622     body may not:
623          (a) enact or enforce an ordinance that prohibits an individual from listing or offering a
624     short-term rental on a short-term rental website; or
625          (b) use an ordinance that prohibits the act of renting a short-term rental to fine, charge,
626     prosecute, or otherwise punish an individual solely for the act of listing or offering a short-term
627     rental on a short-term rental website.
628          (3) Subsection (2) does not apply to an individual who:
629          (a) obtains or is required to obtain a permit or license from the county to rent an
630     internal accessory dwelling unit; and

631          (b) lists or offers the unit described in Subsection (3)(a) as a short-term rental on a
632     short-term rental website.
633          Section 12. Section 35A-8-504.5 is enacted to read:
634          35A-8-504.5. Low-income ADU loan guarantee pilot program.
635          (1) As used in this section:
636          (a) "Accessory dwelling unit" means the same as that term is defined in Section
637     10-9a-103.
638          (b) "Borrower" means a residential property owner who receives a low-income ADU
639     loan from a lender.
640          (c) "Lender" means a trust company, savings bank, savings and loan association, bank,
641     credit union, or any other entity that provides low-income ADU loans directly to borrowers.
642          (d) "Low-income ADU loan" means a loan made by a lender to a borrower for the
643     purpose of financing the construction of an accessory dwelling unit that is:
644          (i) located on the borrower's residential property; and
645          (ii) rented to a low-income individual.
646          (e) "Low-income individual" means an individual whose household income is less than
647     80% of the area median income.
648          (f) "Pilot program" means the two-year pilot program created in this section.
649          (2) The executive director shall establish a two-year pilot program to provide loan
650     guarantees on behalf of borrowers for the purpose of insuring the repayment of low-income
651     ADU loans.
652          (3) The executive director may not provide a loan guarantee for a low-income ADU
653     loan under the pilot program unless:
654          (a) the lender:
655          (i) agrees in writing to participate in the pilot program;
656          (ii) makes available to prospective borrowers the option of receiving a low-income
657     ADU loan that:
658          (A) has a term of 15 years; and
659          (B) charges interest at a fixed rate;
660          (iii) monitors the activities of the borrower on a yearly basis during the term of the loan
661     to ensure the borrower's compliance with:

662          (A) Subsection (3)(c); and
663          (B) any other term or condition of the loan; and
664          (iv) promptly notifies the executive director in writing if the borrower fails to comply
665     with:
666          (A) Subsection (3)(c); or
667          (B) any other term or condition of the loan;
668          (b) the loan terms of the low-income ADU loan:
669          (i) are consistent with the loan terms described in Subsection (3)(a)(ii); or
670          (ii) if different from the loan terms described in Subsection (3)(a)(ii), are mutually
671     agreed upon by the lender and the borrower; and
672          (c) the borrower:
673          (i) agrees in writing to participate in the pilot program;
674          (ii) constructs an accessory dwelling unit on the borrower's residential property within
675     one year after the day on which the borrower receives the loan;
676          (iii) occupies the primary residence to which the accessory dwelling unit is associated:
677          (A) after the accessory dwelling unit is completed; and
678          (B) for the remainder of the term of the loan; and
679          (iv) rents the accessory dwelling unit to a low-income individual:
680          (A) after the accessory dwelling unit is completed; and
681          (B) for the remainder of the term of the loan.
682          (4) At the direction of the board, the executive director shall make rules in accordance
683     with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to establish:
684          (a) the minimum criteria for lenders and borrowers to participate in the pilot program;
685          (b) the terms and conditions for loan guarantees provided under the pilot program,
686     consistent with Subsection (3); and
687          (c) procedures for the pilot program's loan guarantee process.
688          (5) The executive director shall submit a report on the pilot program to the Business
689     and Labor Interim Committee on or before November 30, 2023.
690          Section 13. Section 35A-8-505 is amended to read:
691          35A-8-505. Activities authorized to receive fund money -- Powers of the executive
692     director.

693          At the direction of the board, the executive director may:
694          (1) provide fund money to any of the following activities:
695          (a) the acquisition, rehabilitation, or new construction of low-income housing units;
696          (b) matching funds for social services projects directly related to providing housing for
697     special-need renters in assisted projects;
698          (c) the development and construction of accessible housing designed for low-income
699     persons;
700          (d) the construction or improvement of a shelter or transitional housing facility that
701     provides services intended to prevent or minimize homelessness among members of a specific
702     homeless subpopulation;
703          (e) the purchase of an existing facility to provide temporary or transitional housing for
704     the homeless in an area that does not require rezoning before providing such temporary or
705     transitional housing;
706          (f) the purchase of land that will be used as the site of low-income housing units;
707          (g) the preservation of existing affordable housing units for low-income persons; [and]
708          (h) providing loan guarantees under the two-year pilot program established in Section
709     35A-8-504.5; and
710          [(h)] (i) other activities that will assist in minimizing homelessness or improving the
711     availability or quality of housing in the state for low-income persons; and
712          (2) do any act necessary or convenient to the exercise of the powers granted by this part
713     or reasonably implied from those granted powers, including:
714          (a) making or executing contracts and other instruments necessary or convenient for
715     the performance of the executive director and board's duties and the exercise of the executive
716     director and board's powers and functions under this part, including contracts or agreements for
717     the servicing and originating of mortgage loans;
718          (b) procuring insurance against a loss in connection with property or other assets held
719     by the fund, including mortgage loans, in amounts and from insurers it considers desirable;
720          (c) entering into agreements with a department, agency, or instrumentality of the
721     United States or this state and with mortgagors and mortgage lenders for the purpose of
722     planning and regulating and providing for the financing and refinancing, purchase,
723     construction, reconstruction, rehabilitation, leasing, management, maintenance, operation, sale,

724     or other disposition of residential housing undertaken with the assistance of the department
725     under this part;
726          (d) proceeding with a foreclosure action, to own, lease, clear, reconstruct, rehabilitate,
727     repair, maintain, manage, operate, assign, encumber, sell, or otherwise dispose of real or
728     personal property obtained by the fund due to the default on a mortgage loan held by the fund
729     in preparation for disposition of the property, taking assignments of leases and rentals,
730     proceeding with foreclosure actions, and taking other actions necessary or incidental to the
731     performance of its duties; and
732          (e) selling, at a public or private sale, with public bidding, a mortgage or other
733     obligation held by the fund.
734          Section 14. Section 57-8a-209 is amended to read:
735          57-8a-209. Rental restrictions.
736          (1) (a) Subject to Subsections (1)(b), (5), [and] (6), and (10), an association may:
737          (i) create restrictions on the number and term of rentals in an association; or
738          (ii) prohibit rentals in the association.
739          (b) An association that creates a rental restriction or prohibition in accordance with
740     Subsection (1)(a) shall create the rental restriction or prohibition in a recorded declaration of
741     covenants, conditions, and restrictions, or by amending the recorded declaration of covenants,
742     conditions, and restrictions.
743          (2) If an association prohibits or imposes restrictions on the number and term of
744     rentals, the restrictions shall include:
745          (a) a provision that requires the association to exempt from the rental restrictions the
746     following lot owner and the lot owner's lot:
747          (i) a lot owner in the military for the period of the lot owner's deployment;
748          (ii) a lot occupied by a lot owner's parent, child, or sibling;
749          (iii) a lot owner whose employer has relocated the lot owner for two years or less;
750          (iv) a lot owned by an entity that is occupied by an individual who:
751          (A) has voting rights under the entity's organizing documents; and
752          (B) has a 25% or greater share of ownership, control, and right to profits and losses of
753     the entity; or
754          (v) a lot owned by a trust or other entity created for estate planning purposes if the trust

755     or other estate planning entity was created for:
756          (A) the estate of a current resident of the lot; or
757          (B) the parent, child, or sibling of the current resident of the lot;
758          (b) a provision that allows a lot owner who has a rental in the association before the
759     time the rental restriction described in Subsection (1)(a) is recorded with the county recorder of
760     the county in which the association is located to continue renting until:
761          (i) the lot owner occupies the lot;
762          (ii) an officer, owner, member, trustee, beneficiary, director, or person holding a
763     similar position of ownership or control of an entity or trust that holds an ownership interest in
764     the lot, occupies the lot; or
765          (iii) the lot is transferred; and
766          (c) a requirement that the association create, by rule or resolution, procedures to:
767          (i) determine and track the number of rentals and lots in the association subject to the
768     provisions described in Subsections (2)(a) and (b); and
769          (ii) ensure consistent administration and enforcement of the rental restrictions.
770          (3) For purposes of Subsection (2)(b)(iii), a transfer occurs when one or more of the
771     following occur:
772          (a) the conveyance, sale, or other transfer of a lot by deed;
773          (b) the granting of a life estate in the lot; or
774          (c) if the lot is owned by a limited liability company, corporation, partnership, or other
775     business entity, the sale or transfer of more than 75% of the business entity's share, stock,
776     membership interests, or partnership interests in a 12-month period.
777          (4) This section does not limit or affect residency age requirements for an association
778     that complies with the requirements of the Housing for Older Persons Act, 42 U.S.C. Sec.
779     3607.
780          (5) A declaration of covenants, conditions, and restrictions or amendments to the
781     declaration of covenants, conditions, and restrictions recorded before the transfer of the first lot
782     from the initial declarant may prohibit or restrict rentals without providing for the exceptions,
783     provisions, and procedures required under Subsection (2).
784          (6) (a) Subsections (1) through (5) do not apply to:
785          (i) an association that contains a time period unit as defined in Section 57-8-3;

786          (ii) any other form of timeshare interest as defined in Section 57-19-2; or
787          (iii) subject to Subsection (6)(b), an association that is formed before May 12, 2009,
788     unless, on or after May 12, 2015, the association:
789          (A) adopts a rental restriction or prohibition; or
790          (B) amends an existing rental restriction or prohibition.
791          (b) An association that adopts a rental restriction or amends an existing rental
792     restriction or prohibition before May 9, 2017, is not required to include the exemption
793     described in Subsection (2)(a)(iv).
794          (7) Notwithstanding this section, an association may restrict or prohibit rentals without
795     an exception described in Subsection (2) if:
796          (a) the restriction or prohibition receives unanimous approval by all lot owners; and
797          (b) when the restriction or prohibition requires an amendment to the association's
798     recorded declaration of covenants, conditions, and restrictions, the association fulfills all other
799     requirements for amending the recorded declaration of covenants, conditions, and restrictions
800     described in the association's governing documents.
801          (8) Except as provided in Subsection (9), an association may not require a lot owner
802     who owns a rental lot to:
803          (a) obtain the association's approval of a prospective renter;
804          (b) give the association:
805          (i) a copy of a rental application;
806          (ii) a copy of a renter's or prospective renter's credit information or credit report;
807          (iii) a copy of a renter's or prospective renter's background check; or
808          (iv) documentation to verify the renter's age; or
809          (c) pay an additional assessment, fine, or fee because the lot is a rental lot.
810          (9) (a) A lot owner who owns a rental lot shall give an association the documents
811     described in Subsection (8)(b) if the lot owner is required to provide the documents by court
812     order or as part of discovery under the Utah Rules of Civil Procedure.
813          (b) If an association's declaration of covenants, conditions, and restrictions lawfully
814     prohibits or restricts occupancy of the lots by a certain class of individuals, the association may
815     require a lot owner who owns a rental lot to give the association the information described in
816     Subsection (8)(b), if:

817          (i) the information helps the association determine whether the renter's occupancy of
818     the lot complies with the association's declaration of covenants, conditions, and restrictions;
819     and
820          (ii) the association uses the information to determine whether the renter's occupancy of
821     the lot complies with the association's declaration of covenants, conditions, and restrictions.
822          (10) Notwithstanding Subsection (1)(a), an association may not restrict or prohibit the
823     rental of an internal accessory dwelling unit, as defined in Section 10-9a-530, constructed
824     within a lot owner's residential lot, if the internal accessory dwelling unit complies with all
825     applicable:
826          (a) land use ordinances;
827          (b) building codes;
828          (c) health codes; and
829          (d) fire codes.
830          [(10)] (11) The provisions of Subsections (8) [and (9)] through (10) apply to an
831     association regardless of when the association is created.
832          Section 15. Section 57-8a-218 is amended to read:
833          57-8a-218. Equal treatment by rules required -- Limits on association rules and
834     design criteria.
835          (1) (a) Except as provided in Subsection (1)(b), a rule shall treat similarly situated lot
836     owners similarly.
837          (b) Notwithstanding Subsection (1)(a), a rule may:
838          (i) vary according to the level and type of service that the association provides to lot
839     owners;
840          (ii) differ between residential and nonresidential uses; and
841          (iii) for a lot that an owner leases for a term of less than 30 days, impose a reasonable
842     limit on the number of individuals who may use the common areas and facilities as guests of
843     the lot tenant or lot owner.
844          (2) (a) If a lot owner owns a rental lot and is in compliance with the association's
845     governing documents and any rule that the association adopts under Subsection (4), a rule may
846     not treat the lot owner differently because the lot owner owns a rental lot.
847          (b) Notwithstanding Subsection (2)(a), a rule may:

848          (i) limit or prohibit a rental lot owner from using the common areas for purposes other
849     than attending an association meeting or managing the rental lot;
850          (ii) if the rental lot owner retains the right to use the association's common areas, even
851     occasionally:
852          (A) charge a rental lot owner a fee to use the common areas; or
853          (B) for a lot that an owner leases for a term of less than 30 days, impose a reasonable
854     limit on the number of individuals who may use the common areas and facilities as guests of
855     the lot tenant or lot owner; or
856          (iii) include a provision in the association's governing documents that:
857          (A) requires each tenant of a rental lot to abide by the terms of the governing
858     documents; and
859          (B) holds the tenant and the rental lot owner jointly and severally liable for a violation
860     of a provision of the governing documents.
861          (3) (a) A rule criterion may not abridge the rights of a lot owner to display religious
862     and holiday signs, symbols, and decorations inside a dwelling on a lot.
863          (b) Notwithstanding Subsection (3)(a), the association may adopt time, place, and
864     manner restrictions with respect to displays visible from outside the dwelling or lot.
865          (4) (a) A rule may not regulate the content of political signs.
866          (b) Notwithstanding Subsection (4)(a):
867          (i) a rule may regulate the time, place, and manner of posting a political sign; and
868          (ii) an association design provision may establish design criteria for political signs.
869          (5) (a) A rule may not interfere with the freedom of a lot owner to determine the
870     composition of the lot owner's household.
871          (b) Notwithstanding Subsection (5)(a), an association may:
872          (i) require that all occupants of a dwelling be members of a single housekeeping unit;
873     or
874          (ii) limit the total number of occupants permitted in each residential dwelling on the
875     basis of the residential dwelling's:
876          (A) size and facilities; and
877          (B) fair use of the common areas.
878          (6) (a) A rule may not interfere with an activity of a lot owner within the confines of a

879     dwelling or lot, to the extent that the activity is in compliance with local laws and ordinances.
880          (b) Notwithstanding Subsection (6)(a), a rule may prohibit an activity within a dwelling
881     on an owner's lot if the activity:
882          (i) is not normally associated with a project restricted to residential use; or
883          (ii) (A) creates monetary costs for the association or other lot owners;
884          (B) creates a danger to the health or safety of occupants of other lots;
885          (C) generates excessive noise or traffic;
886          (D) creates unsightly conditions visible from outside the dwelling;
887          (E) creates an unreasonable source of annoyance to persons outside the lot; or
888          (F) if there are attached dwellings, creates the potential for smoke to enter another lot
889     owner's dwelling, the common areas, or limited common areas.
890          (c) If permitted by law, an association may adopt rules described in Subsection (6)(b)
891     that affect the use of or behavior inside the dwelling.
892          (7) (a) A rule may not, to the detriment of a lot owner and over the lot owner's written
893     objection to the board, alter the allocation of financial burdens among the various lots.
894          (b) Notwithstanding Subsection (7)(a), an association may:
895          (i) change the common areas available to a lot owner;
896          (ii) adopt generally applicable rules for the use of common areas; or
897          (iii) deny use privileges to a lot owner who:
898          (A) is delinquent in paying assessments;
899          (B) abuses the common areas; or
900          (C) violates the governing documents.
901          (c) This Subsection (7) does not permit a rule that:
902          (i) alters the method of levying assessments; or
903          (ii) increases the amount of assessments as provided in the declaration.
904          (8) (a) Subject to Subsection (8)(b), a rule may not:
905          (i) prohibit the transfer of a lot; or
906          (ii) require the consent of the association or board to transfer a lot.
907          (b) Unless contrary to a declaration, a rule may require a minimum lease term.
908          (9) (a) A rule may not require a lot owner to dispose of personal property that was in or
909     on a lot before the adoption of the rule or design criteria if the personal property was in

910     compliance with all rules and other governing documents previously in force.
911          (b) The exemption in Subsection (9)(a):
912          (i) applies during the period of the lot owner's ownership of the lot; and
913          (ii) does not apply to a subsequent lot owner who takes title to the lot after adoption of
914     the rule described in Subsection (9)(a).
915          (10) A rule or action by the association or action by the board may not unreasonably
916     impede a declarant's ability to satisfy existing development financing for community
917     improvements and right to develop:
918          (a) the project; or
919          (b) other properties in the vicinity of the project.
920          (11) A rule or association or board action may not interfere with:
921          (a) the use or operation of an amenity that the association does not own or control; or
922          (b) the exercise of a right associated with an easement.
923          (12) A rule may not divest a lot owner of the right to proceed in accordance with a
924     completed application for design review, or to proceed in accordance with another approval
925     process, under the terms of the governing documents in existence at the time the completed
926     application was submitted by the owner for review.
927          (13) Unless otherwise provided in the declaration, an association may by rule:
928          (a) regulate the use, maintenance, repair, replacement, and modification of common
929     areas;
930          (b) impose and receive any payment, fee, or charge for:
931          (i) the use, rental, or operation of the common areas, except limited common areas; and
932          (ii) a service provided to a lot owner;
933          (c) impose a charge for a late payment of an assessment; or
934          (d) provide for the indemnification of the association's officers and board consistent
935     with Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act.
936          (14) (a) Except as provided in Subsection (14)(b), a rule may not prohibit the owner of
937     a residential lot from constructing an internal accessory dwelling unit, as defined in Section
938     10-9a-530, within the owner's residential lot.
939          (b) Subsection (14)(a) does not apply if the construction would violate:
940          (i) a local land use ordinance;

941          (ii) a building code;
942          (iii) a health code; or
943          (iv) a fire code.
944          [(14)] (15) A rule shall be reasonable.
945          [(15)] (16) A declaration, or an amendment to a declaration, may vary any of the
946     requirements of Subsections (1) through (13), except Subsection (1)(b)(ii).
947          [(16)] (17) A rule may not be inconsistent with a provision of the association's
948     declaration, bylaws, or articles of incorporation.
949          [(17)] (18) This section applies to an association regardless of when the association is
950     created.
951          Section 16. Section 57-8a-218 is amended to read:
952          57-8a-218. Effective date.
953          (1) Except as provided in Subsection (2), this bill takes effect on May 5, 2021.
954          (2) The actions affecting the following sections take effect on October 1, 2021:
955          (a) Section 10-9a-530;
956          (b) Section 17-27a-526;
957          (c) Section 57-8a-209; and
958          (d) Section 57-8a-218.