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 lists or offers an internal
79     accessory dwelling unit as a short-term rental on a short-term rental website if the municipality
80     records a notice for the internal accessory dwelling unit under Subsection 10-9a-530(6).
81          Section 2. Section 10-9a-505.5 is amended to read:
82          10-9a-505.5. Limit on single family designation.
83          (1) As used in this section, "single-family limit" means the number of [unrelated]
84     individuals allowed to occupy each residential unit that is recognized by a land use authority in
85     a zone permitting occupancy by a single family.
86          (2) A municipality may not adopt a single-family limit that is less than:
87          (a) three, if the municipality has within its boundary:

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

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

150          (a) the use of an internal accessory dwelling unit is a permitted use; and
151          (b) except as provided in Subsection (4), a municipality may not establish any
152     restrictions or requirements for the construction or use of one internal accessory dwelling unit
153     within a primary dwelling, including a restriction or requirement governing:
154          (i) the size of the internal accessory dwelling unit in relation to the primary dwelling;
155          (ii) total lot size; or
156          (iii) street frontage.
157          (3) An internal accessory dwelling unit shall comply with all applicable building,
158     health, and fire codes.
159          (4) A municipality may:
160          (a) prohibit the installation of a separate utility meter for an internal accessory dwelling
161     unit;
162          (b) require that an internal accessory dwelling unit be designed in a manner that does
163     not change the appearance of the primary dwelling as a single-family dwelling;
164          (c) require a primary dwelling:
165          (i) to include one additional on-site parking space for an internal accessory dwelling
166     unit, regardless of whether the primary dwelling is existing or new construction; and
167          (ii) to replace any parking spaces contained within a garage or carport if an internal
168     accessory dwelling unit is created within the garage or carport;
169          (d) prohibit the creation of an internal accessory dwelling unit within a mobile home as
170     defined in Section 57-16-3;
171          (e) require the owner of a primary dwelling to obtain a permit or license for renting an
172     internal accessory dwelling unit;
173          (f) prohibit the creation of an internal accessory dwelling unit within a zoning district
174     covering an area that is equivalent to:
175          (i) 25% or less of the total area in the municipality that is zoned primarily for
176     residential use; or
177          (ii) 67% or less of the total area in the municipality that is zoned primarily for
178     residential use, if the main campus of a state or private university with a student population of
179     10,000 or more is located within the municipality;
180          (g) prohibit the creation of an internal accessory dwelling unit if the primary dwelling

181     is served by a failing septic tank;
182          (h) prohibit the creation of an internal accessory dwelling unit if the lot containing the
183     primary dwelling is 6,000 square feet or less in size;
184          (i) prohibit the rental or offering the rental of an internal accessory dwelling unit for a
185     period of less than 30 consecutive days;
186          (j) prohibit the rental of an internal accessory dwelling unit if the internal accessory
187     dwelling unit is located in a dwelling that is not occupied as the owner's primary residence;
188          (k) hold a lien against a property that contains an internal accessory dwelling unit in
189     accordance with Subsection (5); and
190          (l) record a notice for an internal accessory dwelling unit in accordance with
191     Subsection (6).
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 municipality holds a hearing and determines that the violation has occurred in
200     accordance with Subsection (5)(d), if the owner files a written objection in accordance with
201     Subsection (5)(b)(iv);
202          (iv) the owner fails to cure the violation within the time period prescribed in the
203     written notice of violation under Subsection (5)(b);
204          (v) the municipality provides a written notice of lien in accordance with Subsection
205     (5)(c); and
206          (vi) the municipality records a copy of the written notice of lien described in
207     Subsection (5)(a)(iv) with the county recorder of the county in which the property is located.
208          (b) The written notice of violation shall:
209          (i) describe the specific violation;
210          (ii) provide the owner of the internal accessory dwelling unit a reasonable opportunity
211     to cure the violation that is:

212          (A) no less than 14 days after the day on which the municipality sends the written
213     notice of violation, if the violation results from the owner renting or offering to rent the internal
214     accessory dwelling unit for a period of less than 30 consecutive days; or
215          (B) no less than 30 days after the day on which the municipality sends the written
216     notice of violation, for any other violation;
217          (iii) state that if the owner of the property fails to cure the violation within the time
218     period described in Subsection (5)(b)(ii), the municipality may hold a lien against the property
219     in an amount of up to $100 for each day of violation after the day on which the opportunity to
220     cure the violation expires;
221          (iv) notify the owner of the property:
222          (A) that the owner may file a written objection to the violation within 14 days after the
223     day on which the written notice of violation is post-marked or posted on the property; and
224          (B) of the name and address of the municipal office where the owner may file the
225     written objection;
226          (v) be mailed to:
227          (A) the property's owner of record; and
228          (B) any other individual designated to receive notice in the owner's license or permit
229     records; and
230          (vi) be posted on the property.
231          (c) The written notice of lien shall:
232          (i) comply with the requirements of Section 38-12-102;
233          (ii) state that the property is subject to a lien;
234          (iii) specify the lien amount, in an amount of up to $100 for each day of violation after
235     the day on which the opportunity to cure the violation expires;
236          (iv) be mailed to:
237          (A) the property's owner of record; and
238          (B) any other individual designated to receive notice in the owner's license or permit
239     records; and
240          (v) be posted on the property.
241          (d) (i) If an owner of property files a written objection in accordance with Subsection
242     (5)(b)(iv), the municipality shall:

243          (A) hold a hearing in accordance with Title 52, Chapter 4, Open and Public Meetings
244     Act, to conduct a review and determine whether the specific violation described in the written
245     notice of violation under Subsection (5)(b) has occurred; and
246          (B) notify the owner in writing of the date, time, and location of the hearing described
247     in Subsection (5)(d)(i)(A) no less than 14 days before the day on which the hearing is held.
248          (ii) If an owner of property files a written objection under Subsection (5)(b)(iv), a
249     municipality may not record a lien under this Subsection (5) until the municipality holds a
250     hearing and determines that the specific violation has occurred.
251          (iii) If the municipality determines at the hearing that the specific violation has
252     occurred, the municipality may impose a lien in an amount of up to $100 for each day of
253     violation after the day on which the opportunity to cure the violation expires, regardless of
254     whether the hearing is held after the day on which the opportunity to cure the violation has
255     expired.
256          (e) If an owner cures a violation within the time period prescribed in the written notice
257     of violation under Subsection (5)(b), the municipality may not hold a lien against the property,
258     or impose any penalty or fee on the owner, in relation to the specific violation described in the
259     written notice of violation under Subsection (5)(b).
260          (6) (a) A municipality that issues a permit or license to the owner of an internal
261     accessory dwelling unit to rent the internal accessory dwelling unit, or issues a building permit
262     to the owner of an internal accessory dwelling unit to create the internal accessory dwelling
263     unit, may record a notice in the office of the recorder of the county in which the property is
264     located.
265          (b) The notice described in Subsection (6)(a) shall include:
266          (i) a description of the primary dwelling;
267          (ii) a statement that the primary dwelling contains an internal accessory dwelling unit;
268     and
269          (iii) a statement that the internal accessory dwelling unit may only be used in
270     accordance with the municipality's land use regulations.
271          (c) The municipality shall, upon recording the notice described in Subsection (6)(a),
272     deliver a copy of the notice to the owner of the internal accessory dwelling unit.
273          Section 5. Section 15A-3-202 is amended to read:

274          15A-3-202. Amendments to Chapters 1 through 5 of IRC.
275          (1) In IRC, Section R102, a new Section R102.7.2 is added as follows: "R102.7.2
276     Physical change for bedroom window egress. A structure whose egress window in an existing
277     bedroom is smaller than required by this code, and that complied with the construction code in
278     effect at the time that the bedroom was finished, is not required to undergo a physical change to
279     conform to this code if the change would compromise the structural integrity of the structure or
280     could not be completed in accordance with other applicable requirements of this code,
281     including setback and window well requirements."
282          (2) In IRC, Section R108.3, the following sentence is added at the end of the section:
283     "The building official shall not request proprietary information."
284          (3) In IRC, Section 109:
285          (a) A new IRC, Section 109.1.5, is added as follows: "R109.1.5 Weather-resistant
286     exterior wall envelope inspections. An inspection shall be made of the weather-resistant
287     exterior wall envelope as required by Section R703.1 and flashings as required by Section
288     R703.8 to prevent water from entering the weather-resistive barrier."
289          (b) The remaining sections are renumbered as follows: R109.1.6 Other inspections;
290     R109.1.6.1 Fire- and smoke-resistance-rated construction inspection; R109.1.6.2 Reinforced
291     masonry, insulating concrete form (ICF) and conventionally formed concrete wall inspection;
292     and R109.1.7 Final inspection.
293          (4) IRC, Section R114.1, is deleted and replaced with the following: "R114.1 Notice to
294     owner. Upon notice from the building official that work on any building or structure is being
295     prosecuted contrary to the provisions of this code or other pertinent laws or ordinances or in an
296     unsafe and dangerous manner, such work shall be immediately stopped. The stop work order
297     shall be in writing and shall be given to the owner of the property involved, or to the owner's
298     agent or to the person doing the work; and shall state the conditions under which work will be
299     permitted to resume."
300          (5) In IRC, Section R202, the following definition is added: "ACCESSORY
301     DWELLING UNIT: A habitable living unit created within the existing footprint of a primary
302     owner-occupied single-family dwelling."
303          [(5)] (6) In IRC, Section R202, the following definition is added: "CERTIFIED
304     BACKFLOW PREVENTER ASSEMBLY TESTER: A person who has shown competence to

305     test Backflow prevention assemblies to the satisfaction of the authority having jurisdiction
306     under Utah Code, Subsection 19-4-104(4)."
307          [(6)] (7) In IRC, Section R202, the definition of "Cross Connection" is deleted and
308     replaced with the following: "CROSS CONNECTION. Any physical connection or potential
309     connection or arrangement between two otherwise separate piping systems, one of which
310     contains potable water and the other either water of unknown or questionable safety or steam,
311     gas, or chemical, whereby there exists the possibility for flow from one system to the other,
312     with the direction of flow depending on the pressure differential between the two systems (see
313     "Backflow, Water Distribution")."
314          [(7)] (8) In IRC, Section 202, in the definition for gray water a comma is inserted after
315     the word "washers"; the word "and" is deleted; and the following is added to the end: "and
316     clear water wastes which have a pH of 6.0 to 9.0; are non-flammable; non-combustible;
317     without objectionable odors; non-highly pigmented; and will not interfere with the operation of
318     the sewer treatment facility."
319          [(8)] (9) In IRC, Section R202, the definition of "Potable Water" is deleted and
320     replaced with the following: "POTABLE WATER. Water free from impurities present in
321     amounts sufficient to cause disease or harmful physiological effects and conforming to the
322     Utah Code, Title 19, Chapter 4, Safe Drinking Water Act, and Title 19, Chapter 5, Water
323     Quality Act, and the regulations of the public health authority having jurisdiction."
324          [(9)] (10) IRC, Figure R301.2(5), is deleted and replaced with R301.2(5) as follows:
325     
"TABLE R301.2(5)
326     
GROUND SNOW LOADS FOR SELECTED LOCATIONS IN UTAH
327      City/TownCountyGround Snow Load (lb/ft2)Elevation (ft)
328      BeaverBeaver355886
329      Brigham CityBox Elder424423
330      Castle DaleEmery325669
331      CoalvilleSummit575581
332      DuchesneDuchesne395508
333      FarmingtonDavis354318
334      FillmoreMillard305138
335      Heber CityWasatch605604
336      JunctionPiute276030
337      KanabKane254964
338      LoaWayne377060
339      LoganCache434531
340      ManilaDaggett266368
341      MantiSanpete375620
342      MoabGrand214029
343      MonticelloSan Juan677064
344      MorganMorgan525062
345      NephiJuab395131
346      OgdenWeber374334
347      PanguitchGarfield416630
348      ParowanIron326007
349      PriceCarbon315558
350      ProvoUtah314541
351      RandolphRich506286
352      RichfieldSevier275338
353      St. GeorgeWashington212585
354      Salt Lake CitySalt Lake284239
355      TooeleTooele355029
356      VernalUintah395384
357      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.
358          [(10)] (11) IRC, Section R301.6, is deleted and replaced with the following: "R301.6
359     Utah Snow Loads. The snow loads specified in Table R301.2(5b) shall be used for the
360     jurisdictions identified in that table. Otherwise, for other locations in Utah, see Bean, B.,
361     Maguire, M., Sun, Y. (2018), "The Utah Snow Load Study," Utah State University Civil and
362     Environmental Engineering Faculty Publications, Paper 3589, http://utahsnowload.usu.edu/, for
363     ground snow load values."
364          [(11)] (12) In IRC, Section R302.2, the following sentence is added after the second
365     sentence: "When an access/maintenance agreement or easement is in place, plumbing,
366     mechanical ducting, schedule 40 steel gas pipe, and electric service conductors including
367     feeders, are permitted to penetrate the common wall at grade, above grade, or below grade."
368          (13) In IRC, Section R302.3, a new exception 3 is added as follows: "3. Accessory
369     dwelling units separated by walls or floor assemblies protected by not less than 1/2-inch (12.7
370     mm) gypsum board or equivalent on each side of the wall or bottom of the floor assembly are
371     exempt from the requirements of this section."
372          [(12)] (14) In IRC, Section R302.5.1, the words "self-closing device" are deleted and
373     replaced with "self-latching hardware."
374          [(13)] (15) IRC, Section R302.13, is deleted.
375          [(14)] (16) In IRC, Section R303.4, the number "5" is changed to "3" in the first
376     sentence.
377          (17) In IRC, Section R310.6, in the exception, the words "or accessory dwelling units"
378     are added after the words "sleeping rooms".
379          [(15)] (18) IRC, Sections R311.7.4 through R311.7.5.3, are deleted and replaced with

380     the following: "R311.7.4 Stair treads and risers. R311.7.5.1 Riser height. The maximum riser
381     height shall be 8 inches (203 mm). The riser shall be measured vertically between leading
382     edges of the adjacent treads. The greatest riser height within any flight of stairs shall not
383     exceed the smallest by more than 3/8 inch (9.5 mm).
384     R311.7.5.2 Tread depth. The minimum tread depth shall be 9 inches (228 mm). The tread
385     depth shall be measured horizontally between the vertical planes of the foremost projection of
386     adjacent treads and at a right angle to the tread's leading edge. The greatest tread depth within
387     any flight of stairs shall not exceed the smallest by more than 3/8 inch (9.5 mm). Winder
388     treads shall have a minimum tread depth of 10 inches (254 mm) measured as above at a point
389     12 inches (305 mm) from the side where the treads are narrower. Winder treads shall have a
390     minimum tread depth of 6 inches (152 mm) at any point. Within any flight of stairs, the
391     greatest winder tread depth at the 12-inch (305 mm) walk line shall not exceed the smallest by
392     more than 3/8 inch (9.5 mm).
393     R311.7.5.3 Profile. The radius of curvature at the leading edge of the tread shall be no greater
394     than 9/16 inch (14.3 mm). A nosing not less than 3/4 inch (19 mm) but not more than 1 1/4
395     inches (32 mm) shall be provided on stairways with solid risers. The greatest nosing projection
396     shall not exceed the smallest nosing projection by more than 3/8 inch (9.5 mm) between two
397     stories, including the nosing at the level of floors and landings. Beveling of nosing shall not
398     exceed 1/2 inch (12.7 mm). Risers shall be vertical or sloped from the underside of the leading
399     edge of the tread above at an angle not more than 30 degrees (0.51 rad) from the vertical. Open
400     risers are permitted, provided that the opening between treads does not permit the passage of a
401     4-inch diameter (102 mm) sphere.
402     Exceptions.
403     1. A nosing is not required where the tread depth is a minimum of 10 inches (254 mm).
404     2. The opening between adjacent treads is not limited on stairs with a total rise of 30 inches
405     (762 mm) or less."
406          [(16)] (19) IRC, Section R312.2, is deleted.
407          [(17)] (20) IRC, Sections R313.1 through R313.2.1, are deleted and replaced with the
408     following: "R313.1 Design and installation. When installed, automatic residential fire
409     sprinkler systems for townhouses or one- and two-family dwellings shall be designed and
410     installed in accordance with Section P2904 or NFPA 13D."

411          (21) In IRC, Section R314.2.2, the words "or accessory dwelling units" are added after
412     the words "sleeping rooms".
413          (22) In IRC, Section R315.2.2, the words "or accessory dwelling units" are added after
414     the words "sleeping rooms".
415          [(18)] (23) In IRC, Section 315.3, the following words are added to the first sentence
416     after the word "installed": "on each level of the dwelling unit and."
417          [(19)] (24) In IRC, Section R315.5, a new exception, 3, is added as follows:
418     "3. Hard wiring of carbon monoxide alarms in existing areas shall not be required where the
419     alterations or repairs do not result in the removal of interior wall or ceiling finishes exposing
420     the structure, unless there is an attic, crawl space or basement available which could provide
421     access for hard wiring, without the removal of interior finishes."
422          [(20)] (25) A new IRC, Section R315.7, is added as follows: " R315.7 Interconnection.
423     Where more than one carbon monoxide alarm is required to be installed within an individual
424     dwelling unit in accordance with Section R315.1, the alarm devices shall be interconnected in
425     such a manner that the actuation of one alarm will activate all of the alarms in the individual
426     unit. Physical interconnection of smoke alarms shall not be required where listed wireless
427     alarms are installed and all alarms sound upon activation of one alarm.
428     Exception: Interconnection of carbon monoxide alarms in existing areas shall not be required
429     where alterations or repairs do not result in removal of interior wall or ceiling finishes exposing
430     the structure, unless there is an attic, crawl space or basement available which could provide
431     access for interconnection without the removal of interior finishes."
432          [(21)] (26) In IRC, Section R317.1.5, the period is deleted and the following language
433     is added to the end of the paragraph: "or treated with a moisture resistant coating."
434          [(22)] (27) In IRC, Section 326.1, the words "residential provisions of the" are added
435     after the words "pools and spas shall comply with".
436          [(23)] (28) In IRC, Section R403.1.6, a new Exception 3 is added as follows: "3.
437     When anchor bolt spacing does not exceed 32 inches (813 mm) apart, anchor bolts may be
438     placed with a minimum of two bolts per plate section located not less than 4 inches (102 mm)
439     from each end of each plate section at interior bearing walls, interior braced wall lines, and at
440     all exterior walls."
441          [(24)] (29) In IRC, Section R403.1.6.1, a new exception is added at the end of Item 2

442     and Item 3 as follows: "Exception: When anchor bolt spacing does not exceed 32 inches (816
443     mm) apart, anchor bolts may be placed with a minimum of two bolts per plate section located
444     not less than 4 inches (102 mm) from each end of each plate section at interior bearing walls,
445     interior braced wall lines, and at all exterior walls."
446          [(25)] (30) In IRC, Section R404.1, a new exception is added as follows: "Exception:
447     As an alternative to complying with Sections R404.1 through R404.1.5.3, concrete and
448     masonry foundation walls may be designed in accordance with IBC Sections 1807.1.5 and
449     1807.1.6 as amended in Section 1807.1.6.4 and Table 1807.1.6.4 under these rules."
450          [(26)] (31) In IRC, Section R405.1, a new exception is added as follows: "Exception:
451     When a geotechnical report has been provided for the property, a drainage system is not
452     required unless the drainage system is required as a condition of the geotechnical report. The
453     geological report shall make a recommendation regarding a drainage system."
454          Section 6. Section 15A-3-204 is amended to read:
455          15A-3-204. Amendments to Chapters 16 through 25 of IRC.
456          (1) In IRC, Section M1602.2, a new exception is added at the end of Item 6 as follows:
457     "Exception: The discharge of return air from an accessory dwelling unit into another dwelling
458     unit, or into an accessory dwelling unit from another dwelling unit, is not prohibited."
459          (2) A new IRC, Section G2401.2, is added as follows: "G2401.2 Meter Protection.
460     Fuel gas services shall be in an approved location and/or provided with structures designed to
461     protect the fuel gas meter and surrounding piping from physical damage, including falling,
462     moving, or migrating ice and snow. If an added structure is used, it must provide access for
463     service and comply with the IBC or the IRC."
464          Section 7. Section 15A-3-206 is amended to read:
465          15A-3-206. Amendments to Chapters 36 through 44 and Appendix F of IRC.
466          (1) In IRC, Section E3601.6.2, a new exception is added as follows: "Exception: An
467     occupant of an accessory dwelling unit is not required to have access to the disconnect serving
468     the dwelling unit in which they reside."
469          [(1)] (2) In IRC, Section E3705.4.5, the following words are added after the word
470     "assemblies": "with ungrounded conductors 10 AWG and smaller".
471          [(2)] (3) In IRC, Section E3901.9, the following exception is added:
472     "Exception: Receptacles or other outlets adjacent to the exterior walls of the garage, outlets

473     adjacent to an exterior wall of the garage, or outlets in a storage room with entry from the
474     garage may be connected to the garage branch circuit."
475          [(3)] (4) IRC, Section E3902.16 is deleted.
476          [(4)] (5) In Section E3902.17:
477          (a) following the word "Exception" the number "1." is added; and
478          (b) at the end of the section, the following sentences are added:
479     "2. This section does not apply for a simple move or an extension of a branch circuit or an
480     outlet which does not significantly increase the existing electrical load. This exception does
481     not include changes involving remodeling or additions to a residence."
482          [(5)] (6) IRC, Chapter 44, is amended by adding the following reference standard:
483      "Standard reference
number
TitleReferenced in code
section number
484      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"
485          [(6)] (7) (a) When passive radon controls or portions thereof are voluntarily installed,
486     the voluntary installation shall comply with Appendix F of the IRC.
487          (b) An additional inspection of a voluntary installation described in Subsection [(6)]
488     (7)(a) is not required.
489          Section 8. Section 17-27a-505.5 is amended to read:
490          17-27a-505.5. Limit on single family designation.
491          (1) As used in this section, "single-family limit" means the number of [unrelated]
492     individuals allowed to occupy each residential unit that is recognized by a land use authority in
493     a zone permitting occupancy by a single family.
494          (2) A county may not adopt a single-family limit that is less than:
495          (a) three, if the county has within its unincorporated area:
496          (i) a state university;
497          (ii) a private university with a student population of at least 20,000; or
498          (iii) a mountainous planning district; or
499          (b) four, for each other county.

500          Section 9. Section 17-27a-510.5 is amended to read:
501          17-27a-510.5. Changes to dwellings -- Egress windows.
502          (1) [For purposes of] As used in this section[, "rental]:
503          (a) "Internal accessory dwelling unit" means an accessory dwelling unit created:
504          (i) within a primary dwelling;
505          (ii) within the footprint of the primary dwelling described in Subsection (1)(a)(i) at the
506     time the internal accessory dwelling unit is created; and
507          (iii) for the purpose of offering a long-term rental of 30 consecutive days or longer.
508          (b) "Primary dwelling" means a single-family dwelling that:
509          (i) is detached; and
510          (ii) is occupied as the primary residence of the owner of record.
511          (c) "Rental dwelling" means the same as that term is defined in Section 10-8-85.5.
512          (2) A county ordinance adopted under Section 10-1-203.5 may not:
513          (a) require physical changes in a structure with a legal nonconforming rental dwelling
514     use unless the change is for:
515          (i) the reasonable installation of:
516          (A) a smoke detector that is plugged in or battery operated;
517          (B) a ground fault circuit interrupter protected outlet on existing wiring;
518          (C) street addressing;
519          (D) except as provided in Subsection (3), an egress bedroom window if the existing
520     bedroom window is smaller than that required by current State Construction Code;
521          (E) an electrical system or a plumbing system, if the existing system is not functioning
522     or is unsafe as determined by an independent electrical or plumbing professional who is
523     licensed in accordance with Title 58, Occupations and Professions;
524          (F) hand or guard rails; or
525          (G) occupancy separation doors as required by the International Residential Code; or
526          (ii) the abatement of a structure; or
527          (b) be enforced to terminate a legal nonconforming rental dwelling use.
528          (3) (a) A county may not require physical changes to install an egress or emergency
529     escape window in an existing bedroom that complied with the State Construction Code in
530     effect at the time the bedroom was finished if:

531          [(a)] (i) the dwelling is an owner-occupied dwelling or a rental dwelling that is:
532          [(i)] (A) a detached one-, two-, three-, or four-family dwelling; or
533          [(ii)] (B) a town home that is not more than three stories above grade with a separate
534     means of egress; and
535          [(b) (i)] (ii) (A) the window in the existing bedroom is smaller than that required by
536     current State Construction Code; and
537          [(ii)] (B) the change would compromise the structural integrity of the structure or could
538     not be completed in accordance with current State Construction Code, including set-back and
539     window well requirements.
540          (b) Subsection (3)(a) does not apply to an internal accessory dwelling unit.
541          (4) Nothing in this section prohibits a county from:
542          (a) regulating the style of window that is required or allowed in a bedroom;
543          (b) requiring that a window in an existing bedroom be fully openable if the openable
544     area is less than required by current State Construction Code; or
545          (c) requiring that an existing window not be reduced in size if the openable area is
546     smaller than required by current State Construction Code.
547          Section 10. Section 17-27a-526 is enacted to read:
548          17-27a-526. Internal accessory dwelling units.
549          (1) As used in this section:
550          (a) "Internal accessory dwelling unit" means an accessory dwelling unit created:
551          (i) within a primary dwelling;
552          (ii) within the footprint of the primary dwelling described in Subsection (1)(a)(i) at the
553     time the internal accessory dwelling unit is created; and
554          (iii) for the purpose of offering a long-term rental of 30 consecutive days or longer.
555          (b) "Primary dwelling" means a single-family dwelling that:
556          (i) is detached; and
557          (ii) is occupied as the primary residence of the owner of record.
558          (2) In any area zoned primarily for residential use:
559          (a) the use of an internal accessory dwelling unit is a permitted use; and
560          (b) except as provided in Subsection (4), a county may not establish any restrictions or
561     requirements for the construction or use of one internal accessory dwelling unit within a

562     primary dwelling, including a restriction or requirement governing:
563          (i) the size of the internal accessory dwelling unit in relation to the primary dwelling;
564          (ii) total lot size; or
565          (iii) street frontage.
566          (3) An internal accessory dwelling unit shall comply with all applicable building,
567     health, and fire codes.
568          (4) A county may:
569          (a) prohibit the installation of a separate utility meter for an internal accessory dwelling
570     unit;
571          (b) require that an internal accessory dwelling unit be designed in a manner that does
572     not change the appearance of the primary dwelling as a single-family dwelling;
573          (c) require a primary dwelling:
574          (i) to include one additional on-site parking space for an internal accessory dwelling
575     unit, regardless of whether the primary dwelling is existing or new construction; and
576          (ii) to replace any parking spaces contained within a garage or carport if an internal
577     accessory dwelling unit is created within the garage or carport;
578          (d) prohibit the creation of an internal accessory dwelling unit within a mobile home as
579     defined in Section 57-16-3;
580          (e) require the owner of a primary dwelling to obtain a permit or license for renting an
581     internal accessory dwelling unit;
582          (f) prohibit the creation of an internal accessory dwelling unit within a zoning district
583     covering an area that is equivalent to:
584          (i) 25% or less of the total unincorporated area in the municipality that is zoned
585     primarily for residential use; or
586          (ii) 67% or less of the total unincorporated area in the county that is zoned primarily
587     for residential use, if the main campus of a state or private university with a student population
588     of 10,000 or more is located within the unincorporated area of the county;
589          (g) prohibit the creation of an internal accessory dwelling unit if the primary dwelling
590     is served by a failing septic tank;
591          (h) prohibit the creation of an internal accessory dwelling unit if the lot containing the
592     primary dwelling is 6,000 square feet or less in size;

593          (i) prohibit the rental or offering the rental of an internal accessory dwelling unit for a
594     period of less than 30 consecutive days;
595          (j) prohibit the rental of an internal accessory dwelling unit if the internal accessory
596     dwelling unit is located in a dwelling that is not occupied as the owner's primary residence;
597          (k) hold a lien against a property that contains an internal accessory dwelling unit in
598     accordance with Subsection (5); and
599          (l) record a notice for an internal accessory dwelling unit in accordance with
600     Subsection (6).
601          (5) (a) In addition to any other legal or equitable remedies available to a county, a
602     county may hold a lien against a property that contains an internal accessory dwelling unit if:
603          (i) the owner of the property violates any of the provisions of this section or any
604     ordinance adopted under Subsection (4);
605          (ii) the county provides a written notice of violation in accordance with Subsection
606     (5)(b);
607          (iii) the county holds a hearing and determines that the violation has occurred in
608     accordance with Subsection (5)(d), if the owner files a written objection in accordance with
609     Subsection (5)(b)(iv);
610          (iv) the owner fails to cure the violation within the time period prescribed in the
611     written notice of violation under Subsection (5)(b);
612          (v) the county provides a written notice of lien in accordance with Subsection (5)(c);
613     and
614          (vi) the county records a copy of the written notice of lien described in Subsection
615     (5)(a)(iv) with the county recorder of the county in which the property is located.
616          (b) The written notice of violation shall:
617          (i) describe the specific violation;
618          (ii) provide the owner of the internal accessory dwelling unit a reasonable opportunity
619     to cure the violation that is:
620          (A) no less than 14 days after the day on which the county sends the written notice of
621     violation, if the violation results from the owner renting or offering to rent the internal
622     accessory dwelling unit for a period of less than 30 consecutive days; or
623          (B) no less than 30 days after the day on which the county sends the written notice of

624     violation, for any other violation; and
625          (iii) state that if the owner of the property fails to cure the violation within the time
626     period described in Subsection (5)(b)(ii), the county may hold a lien against the property in an
627     amount of up to $100 for each day of violation after the day on which the opportunity to cure
628     the violation expires;
629          (iv) notify the owner of the property:
630          (A) that the owner may file a written objection to the violation within 14 days after the
631     day on which the written notice of violation is post-marked or posted on the property; and
632          (B) of the name and address of the municipal office where the owner may file the
633     written objection;
634          (v) be mailed to:
635          (A) the property's owner of record; and
636          (B) any other individual designated to receive notice in the owner's license or permit
637     records; and
638          (vi) be posted on the property.
639          (c) The written notice of lien shall:
640          (i) comply with the requirements of Section 38-12-102;
641          (ii) describe the specific violation;
642          (iii) specify the lien amount, in an amount of up to $100 for each day of violation after
643     the day on which the opportunity to cure the violation expires;
644          (iv) be mailed to:
645          (A) the property's owner of record; and
646          (B) any other individual designated to receive notice in the owner's license or permit
647     records; and
648          (v) be posted on the property.
649          (d) (i) If an owner of property files a written objection in accordance with Subsection
650     (5)(b)(iv), the county shall:
651          (A) hold a hearing in accordance with Title 52, Chapter 4, Open and Public Meetings
652     Act, to conduct a review and determine whether the specific violation described in the written
653     notice of violation under Subsection (5)(b) has occurred; and
654          (B) notify the owner in writing of the date, time, and location of the hearing described

655     in Subsection (5)(d)(i)(A) no less than 14 days before the day on which the hearing is held.
656          (ii) If an owner of property files a written objection under Subsection (5)(b)(iv), a
657     county may not record a lien under this Subsection (5) until the municipality holds a hearing
658     and determines that the specific violation has occurred.
659          (iii) If the county determines at the hearing that the specific violation has occurred, the
660     county may impose a lien in an amount of up to $100 for each day of violation after the day on
661     which the opportunity to cure the violation expires, regardless of whether the hearing is held
662     after the day on which the opportunity to cure the violation has expired.
663          (e) If an owner cures a violation within the time period prescribed in the written notice
664     of violation under Subsection (5)(b), the county may not hold a lien against the property, or
665     impose any penalty or fee on the owner, in relation to the specific violation described in the
666     written notice of violation under Subsection (5)(b).
667          (6) (a) A county that issues a permit or license to the owner of an internal accessory
668     dwelling unit to rent the internal accessory dwelling unit, or issues a building permit to the
669     owner of an internal accessory dwelling unit to create the internal accessory dwelling unit, may
670     record a notice in the office of the recorder of the county in which the property is located.
671          (b) The notice described in Subsection (6)(a) shall include:
672          (i) a description of the primary dwelling;
673          (ii) a statement that the primary dwelling contains an internal accessory dwelling unit;
674     and
675          (iii) a statement that the internal accessory dwelling unit may only be used in
676     accordance with the county's land use regulations.
677          (c) The county shall, upon recording the notice described in Subsection (6)(a), deliver a
678     copy of the notice to the owner of the internal accessory dwelling unit.
679          Section 11. Section 17-50-338 is amended to read:
680          17-50-338. Ordinances regarding short-term rentals -- Prohibition on ordinances
681     restricting speech on short-term rental websites.
682          (1) As used in this section:
683          (a) "Internal accessory dwelling unit" means the same as that term is defined in Section
684     10-9a-511.5.
685          [(a)] (b) "Residential unit" means a residential structure or any portion of a residential

686     structure that is occupied as a residence.
687          [(b)] (c) "Short-term rental" means a residential unit or any portion of a residential unit
688     that the owner of record or the lessee of the residential unit offers for occupancy for fewer than
689     30 consecutive days.
690          [(c)] (d) "Short-term rental website" means a website that:
691          (i) allows a person to offer a short-term rental to one or more prospective renters; and
692          (ii) facilitates the renting of, and payment for, a short-term rental.
693          (2) Notwithstanding Section 17-27a-501 or Subsection 17-27a-503(1), a legislative
694     body may not:
695          (a) enact or enforce an ordinance that prohibits an individual from listing or offering a
696     short-term rental on a short-term rental website; or
697          (b) use an ordinance that prohibits the act of renting a short-term rental to fine, charge,
698     prosecute, or otherwise punish an individual solely for the act of listing or offering a short-term
699     rental on a short-term rental website.
700          (3) Subsection (2) does not apply to an individual who lists or offers an internal
701     accessory dwelling unit as a short-term rental on a short-term rental website if the county
702     records a notice for the internal accessory dwelling unit under Subsection 17-27a-526(6).
703          Section 12. Section 35A-8-504.5 is enacted to read:
704          35A-8-504.5. Low-income ADU loan guarantee pilot program.
705          (1) As used in this section:
706          (a) "Accessory dwelling unit" means the same as that term is defined in Section
707     10-9a-103.
708          (b) "Borrower" means a residential property owner who receives a low-income ADU
709     loan from a lender.
710          (c) "Lender" means a trust company, savings bank, savings and loan association, bank,
711     credit union, or any other entity that provides low-income ADU loans directly to borrowers.
712          (d) "Low-income ADU loan" means a loan made by a lender to a borrower for the
713     purpose of financing the construction of an accessory dwelling unit that is:
714          (i) located on the borrower's residential property; and
715          (ii) rented to a low-income individual.
716          (e) "Low-income individual" means an individual whose household income is less than

717     80% of the area median income.
718          (f) "Pilot program" means the two-year pilot program created in this section.
719          (2) The executive director shall establish a two-year pilot program to provide loan
720     guarantees on behalf of borrowers for the purpose of insuring the repayment of low-income
721     ADU loans.
722          (3) The executive director may not provide a loan guarantee for a low-income ADU
723     loan under the pilot program unless:
724          (a) the lender:
725          (i) agrees in writing to participate in the pilot program;
726          (ii) makes available to prospective borrowers the option of receiving a low-income
727     ADU loan that:
728          (A) has a term of 15 years; and
729          (B) charges interest at a fixed rate;
730          (iii) monitors the activities of the borrower on a yearly basis during the term of the loan
731     to ensure the borrower's compliance with:
732          (A) Subsection (3)(c); and
733          (B) any other term or condition of the loan; and
734          (iv) promptly notifies the executive director in writing if the borrower fails to comply
735     with:
736          (A) Subsection (3)(c); or
737          (B) any other term or condition of the loan;
738          (b) the loan terms of the low-income ADU loan:
739          (i) are consistent with the loan terms described in Subsection (3)(a)(ii); or
740          (ii) if different from the loan terms described in Subsection (3)(a)(ii), are mutually
741     agreed upon by the lender and the borrower; and
742          (c) the borrower:
743          (i) agrees in writing to participate in the pilot program;
744          (ii) constructs an accessory dwelling unit on the borrower's residential property within
745     one year after the day on which the borrower receives the loan;
746          (iii) occupies the primary residence to which the accessory dwelling unit is associated:
747          (A) after the accessory dwelling unit is completed; and

748          (B) for the remainder of the term of the loan; and
749          (iv) rents the accessory dwelling unit to a low-income individual:
750          (A) after the accessory dwelling unit is completed; and
751          (B) for the remainder of the term of the loan.
752          (4) At the direction of the board, the executive director shall make rules in accordance
753     with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to establish:
754          (a) the minimum criteria for lenders and borrowers to participate in the pilot program;
755          (b) the terms and conditions for loan guarantees provided under the pilot program,
756     consistent with Subsection (3); and
757          (c) procedures for the pilot program's loan guarantee process.
758          (5) The executive director shall submit a report on the pilot program to the Business
759     and Labor Interim Committee on or before November 30, 2023.
760          Section 13. Section 35A-8-505 is amended to read:
761          35A-8-505. Activities authorized to receive fund money -- Powers of the executive
762     director.
763          At the direction of the board, the executive director may:
764          (1) provide fund money to any of the following activities:
765          (a) the acquisition, rehabilitation, or new construction of low-income housing units;
766          (b) matching funds for social services projects directly related to providing housing for
767     special-need renters in assisted projects;
768          (c) the development and construction of accessible housing designed for low-income
769     persons;
770          (d) the construction or improvement of a shelter or transitional housing facility that
771     provides services intended to prevent or minimize homelessness among members of a specific
772     homeless subpopulation;
773          (e) the purchase of an existing facility to provide temporary or transitional housing for
774     the homeless in an area that does not require rezoning before providing such temporary or
775     transitional housing;
776          (f) the purchase of land that will be used as the site of low-income housing units;
777          (g) the preservation of existing affordable housing units for low-income persons; [and]
778          (h) providing loan guarantees under the two-year pilot program established in Section

779     35A-8-504.5; and
780          [(h)] (i) other activities that will assist in minimizing homelessness or improving the
781     availability or quality of housing in the state for low-income persons; and
782          (2) do any act necessary or convenient to the exercise of the powers granted by this part
783     or reasonably implied from those granted powers, including:
784          (a) making or executing contracts and other instruments necessary or convenient for
785     the performance of the executive director and board's duties and the exercise of the executive
786     director and board's powers and functions under this part, including contracts or agreements for
787     the servicing and originating of mortgage loans;
788          (b) procuring insurance against a loss in connection with property or other assets held
789     by the fund, including mortgage loans, in amounts and from insurers it considers desirable;
790          (c) entering into agreements with a department, agency, or instrumentality of the
791     United States or this state and with mortgagors and mortgage lenders for the purpose of
792     planning and regulating and providing for the financing and refinancing, purchase,
793     construction, reconstruction, rehabilitation, leasing, management, maintenance, operation, sale,
794     or other disposition of residential housing undertaken with the assistance of the department
795     under this part;
796          (d) proceeding with a foreclosure action, to own, lease, clear, reconstruct, rehabilitate,
797     repair, maintain, manage, operate, assign, encumber, sell, or otherwise dispose of real or
798     personal property obtained by the fund due to the default on a mortgage loan held by the fund
799     in preparation for disposition of the property, taking assignments of leases and rentals,
800     proceeding with foreclosure actions, and taking other actions necessary or incidental to the
801     performance of its duties; and
802          (e) selling, at a public or private sale, with public bidding, a mortgage or other
803     obligation held by the fund.
804          Section 14. Section 57-8a-209 is amended to read:
805          57-8a-209. Rental restrictions.
806          (1) (a) Subject to Subsections (1)(b), (5), [and] (6), and (10), an association may:
807          (i) create restrictions on the number and term of rentals in an association; or
808          (ii) prohibit rentals in the association.
809          (b) An association that creates a rental restriction or prohibition in accordance with

810     Subsection (1)(a) shall create the rental restriction or prohibition in a recorded declaration of
811     covenants, conditions, and restrictions, or by amending the recorded declaration of covenants,
812     conditions, and restrictions.
813          (2) If an association prohibits or imposes restrictions on the number and term of
814     rentals, the restrictions shall include:
815          (a) a provision that requires the association to exempt from the rental restrictions the
816     following lot owner and the lot owner's lot:
817          (i) a lot owner in the military for the period of the lot owner's deployment;
818          (ii) a lot occupied by a lot owner's parent, child, or sibling;
819          (iii) a lot owner whose employer has relocated the lot owner for two years or less;
820          (iv) a lot owned by an entity that is occupied by an individual who:
821          (A) has voting rights under the entity's organizing documents; and
822          (B) has a 25% or greater share of ownership, control, and right to profits and losses of
823     the entity; or
824          (v) a lot owned by a trust or other entity created for estate planning purposes if the trust
825     or other estate planning entity was created for:
826          (A) the estate of a current resident of the lot; or
827          (B) the parent, child, or sibling of the current resident of the lot;
828          (b) a provision that allows a lot owner who has a rental in the association before the
829     time the rental restriction described in Subsection (1)(a) is recorded with the county recorder of
830     the county in which the association is located to continue renting until:
831          (i) the lot owner occupies the lot;
832          (ii) an officer, owner, member, trustee, beneficiary, director, or person holding a
833     similar position of ownership or control of an entity or trust that holds an ownership interest in
834     the lot, occupies the lot; or
835          (iii) the lot is transferred; and
836          (c) a requirement that the association create, by rule or resolution, procedures to:
837          (i) determine and track the number of rentals and lots in the association subject to the
838     provisions described in Subsections (2)(a) and (b); and
839          (ii) ensure consistent administration and enforcement of the rental restrictions.
840          (3) For purposes of Subsection (2)(b)(iii), a transfer occurs when one or more of the

841     following occur:
842          (a) the conveyance, sale, or other transfer of a lot by deed;
843          (b) the granting of a life estate in the lot; or
844          (c) if the lot is owned by a limited liability company, corporation, partnership, or other
845     business entity, the sale or transfer of more than 75% of the business entity's share, stock,
846     membership interests, or partnership interests in a 12-month period.
847          (4) This section does not limit or affect residency age requirements for an association
848     that complies with the requirements of the Housing for Older Persons Act, 42 U.S.C. Sec.
849     3607.
850          (5) A declaration of covenants, conditions, and restrictions or amendments to the
851     declaration of covenants, conditions, and restrictions recorded before the transfer of the first lot
852     from the initial declarant may prohibit or restrict rentals without providing for the exceptions,
853     provisions, and procedures required under Subsection (2).
854          (6) (a) Subsections (1) through (5) do not apply to:
855          (i) an association that contains a time period unit as defined in Section 57-8-3;
856          (ii) any other form of timeshare interest as defined in Section 57-19-2; or
857          (iii) subject to Subsection (6)(b), an association that is formed before May 12, 2009,
858     unless, on or after May 12, 2015, the association:
859          (A) adopts a rental restriction or prohibition; or
860          (B) amends an existing rental restriction or prohibition.
861          (b) An association that adopts a rental restriction or amends an existing rental
862     restriction or prohibition before May 9, 2017, is not required to include the exemption
863     described in Subsection (2)(a)(iv).
864          (7) Notwithstanding this section, an association may restrict or prohibit rentals without
865     an exception described in Subsection (2) if:
866          (a) the restriction or prohibition receives unanimous approval by all lot owners; and
867          (b) when the restriction or prohibition requires an amendment to the association's
868     recorded declaration of covenants, conditions, and restrictions, the association fulfills all other
869     requirements for amending the recorded declaration of covenants, conditions, and restrictions
870     described in the association's governing documents.
871          (8) Except as provided in Subsection (9), an association may not require a lot owner

872     who owns a rental lot to:
873          (a) obtain the association's approval of a prospective renter;
874          (b) give the association:
875          (i) a copy of a rental application;
876          (ii) a copy of a renter's or prospective renter's credit information or credit report;
877          (iii) a copy of a renter's or prospective renter's background check; or
878          (iv) documentation to verify the renter's age; or
879          (c) pay an additional assessment, fine, or fee because the lot is a rental lot.
880          (9) (a) A lot owner who owns a rental lot shall give an association the documents
881     described in Subsection (8)(b) if the lot owner is required to provide the documents by court
882     order or as part of discovery under the Utah Rules of Civil Procedure.
883          (b) If an association's declaration of covenants, conditions, and restrictions lawfully
884     prohibits or restricts occupancy of the lots by a certain class of individuals, the association may
885     require a lot owner who owns a rental lot to give the association the information described in
886     Subsection (8)(b), if:
887          (i) the information helps the association determine whether the renter's occupancy of
888     the lot complies with the association's declaration of covenants, conditions, and restrictions;
889     and
890          (ii) the association uses the information to determine whether the renter's occupancy of
891     the lot complies with the association's declaration of covenants, conditions, and restrictions.
892          (10) Notwithstanding Subsection (1)(a), an association may not restrict or prohibit the
893     rental of an internal accessory dwelling unit, as defined in Section 10-9a-530, constructed
894     within a lot owner's residential lot, if the internal accessory dwelling unit complies with all
895     applicable:
896          (a) land use ordinances;
897          (b) building codes;
898          (c) health codes; and
899          (d) fire codes.
900          [(10)] (11) The provisions of Subsections (8) [and (9)] through (10) apply to an
901     association regardless of when the association is created.
902          Section 15. Section 57-8a-218 is amended to read:

903          57-8a-218. Equal treatment by rules required -- Limits on association rules and
904     design criteria.
905          (1) (a) Except as provided in Subsection (1)(b), a rule shall treat similarly situated lot
906     owners similarly.
907          (b) Notwithstanding Subsection (1)(a), a rule may:
908          (i) vary according to the level and type of service that the association provides to lot
909     owners;
910          (ii) differ between residential and nonresidential uses; and
911          (iii) for a lot that an owner leases for a term of less than 30 days, impose a reasonable
912     limit on the number of individuals who may use the common areas and facilities as guests of
913     the lot tenant or lot owner.
914          (2) (a) If a lot owner owns a rental lot and is in compliance with the association's
915     governing documents and any rule that the association adopts under Subsection (4), a rule may
916     not treat the lot owner differently because the lot owner owns a rental lot.
917          (b) Notwithstanding Subsection (2)(a), a rule may:
918          (i) limit or prohibit a rental lot owner from using the common areas for purposes other
919     than attending an association meeting or managing the rental lot;
920          (ii) if the rental lot owner retains the right to use the association's common areas, even
921     occasionally:
922          (A) charge a rental lot owner a fee to use the common areas; or
923          (B) for a lot that an owner leases for a term of less than 30 days, impose a reasonable
924     limit on the number of individuals who may use the common areas and facilities as guests of
925     the lot tenant or lot owner; or
926          (iii) include a provision in the association's governing documents that:
927          (A) requires each tenant of a rental lot to abide by the terms of the governing
928     documents; and
929          (B) holds the tenant and the rental lot owner jointly and severally liable for a violation
930     of a provision of the governing documents.
931          (3) (a) A rule criterion may not abridge the rights of a lot owner to display religious
932     and holiday signs, symbols, and decorations inside a dwelling on a lot.
933          (b) Notwithstanding Subsection (3)(a), the association may adopt time, place, and

934     manner restrictions with respect to displays visible from outside the dwelling or lot.
935          (4) (a) A rule may not regulate the content of political signs.
936          (b) Notwithstanding Subsection (4)(a):
937          (i) a rule may regulate the time, place, and manner of posting a political sign; and
938          (ii) an association design provision may establish design criteria for political signs.
939          (5) (a) A rule may not interfere with the freedom of a lot owner to determine the
940     composition of the lot owner's household.
941          (b) Notwithstanding Subsection (5)(a), an association may:
942          (i) require that all occupants of a dwelling be members of a single housekeeping unit;
943     or
944          (ii) limit the total number of occupants permitted in each residential dwelling on the
945     basis of the residential dwelling's:
946          (A) size and facilities; and
947          (B) fair use of the common areas.
948          (6) (a) A rule may not interfere with an activity of a lot owner within the confines of a
949     dwelling or lot, to the extent that the activity is in compliance with local laws and ordinances.
950          (b) Notwithstanding Subsection (6)(a), a rule may prohibit an activity within a dwelling
951     on an owner's lot if the activity:
952          (i) is not normally associated with a project restricted to residential use; or
953          (ii) (A) creates monetary costs for the association or other lot owners;
954          (B) creates a danger to the health or safety of occupants of other lots;
955          (C) generates excessive noise or traffic;
956          (D) creates unsightly conditions visible from outside the dwelling;
957          (E) creates an unreasonable source of annoyance to persons outside the lot; or
958          (F) if there are attached dwellings, creates the potential for smoke to enter another lot
959     owner's dwelling, the common areas, or limited common areas.
960          (c) If permitted by law, an association may adopt rules described in Subsection (6)(b)
961     that affect the use of or behavior inside the dwelling.
962          (7) (a) A rule may not, to the detriment of a lot owner and over the lot owner's written
963     objection to the board, alter the allocation of financial burdens among the various lots.
964          (b) Notwithstanding Subsection (7)(a), an association may:

965          (i) change the common areas available to a lot owner;
966          (ii) adopt generally applicable rules for the use of common areas; or
967          (iii) deny use privileges to a lot owner who:
968          (A) is delinquent in paying assessments;
969          (B) abuses the common areas; or
970          (C) violates the governing documents.
971          (c) This Subsection (7) does not permit a rule that:
972          (i) alters the method of levying assessments; or
973          (ii) increases the amount of assessments as provided in the declaration.
974          (8) (a) Subject to Subsection (8)(b), a rule may not:
975          (i) prohibit the transfer of a lot; or
976          (ii) require the consent of the association or board to transfer a lot.
977          (b) Unless contrary to a declaration, a rule may require a minimum lease term.
978          (9) (a) A rule may not require a lot owner to dispose of personal property that was in or
979     on a lot before the adoption of the rule or design criteria if the personal property was in
980     compliance with all rules and other governing documents previously in force.
981          (b) The exemption in Subsection (9)(a):
982          (i) applies during the period of the lot owner's ownership of the lot; and
983          (ii) does not apply to a subsequent lot owner who takes title to the lot after adoption of
984     the rule described in Subsection (9)(a).
985          (10) A rule or action by the association or action by the board may not unreasonably
986     impede a declarant's ability to satisfy existing development financing for community
987     improvements and right to develop:
988          (a) the project; or
989          (b) other properties in the vicinity of the project.
990          (11) A rule or association or board action may not interfere with:
991          (a) the use or operation of an amenity that the association does not own or control; or
992          (b) the exercise of a right associated with an easement.
993          (12) A rule may not divest a lot owner of the right to proceed in accordance with a
994     completed application for design review, or to proceed in accordance with another approval
995     process, under the terms of the governing documents in existence at the time the completed

996     application was submitted by the owner for review.
997          (13) Unless otherwise provided in the declaration, an association may by rule:
998          (a) regulate the use, maintenance, repair, replacement, and modification of common
999     areas;
1000          (b) impose and receive any payment, fee, or charge for:
1001          (i) the use, rental, or operation of the common areas, except limited common areas; and
1002          (ii) a service provided to a lot owner;
1003          (c) impose a charge for a late payment of an assessment; or
1004          (d) provide for the indemnification of the association's officers and board consistent
1005     with Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act.
1006          (14) (a) Except as provided in Subsection (14)(b), a rule may not prohibit the owner of
1007     a residential lot from constructing an internal accessory dwelling unit, as defined in Section
1008     10-9a-530, within the owner's residential lot.
1009          (b) Subsection (14)(a) does not apply if the construction would violate:
1010          (i) a local land use ordinance;
1011          (ii) a building code;
1012          (iii) a health code; or
1013          (iv) a fire code.
1014          [(14)] (15) A rule shall be reasonable.
1015          [(15)] (16) A declaration, or an amendment to a declaration, may vary any of the
1016     requirements of Subsections (1) through (13), except Subsection (1)(b)(ii).
1017          [(16)] (17) A rule may not be inconsistent with a provision of the association's
1018     declaration, bylaws, or articles of incorporation.
1019          [(17)] (18) This section applies to an association regardless of when the association is
1020     created.
1021          Section 16. Effective date.
1022          (1) Except as provided in Subsection (2), this bill takes effect on May 5, 2021.
1023          (2) The actions affecting the following sections take effect on October 1, 2021:
1024          (a) Section 10-9a-530;
1025          (b) Section 17-27a-526;
1026          (c) Section 57-8a-209; and

1027          (d) Section 57-8a-218.