1     
UTAH HOUSING AFFORDABILITY AMENDMENTS

2     
2022 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Steve Waldrip

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to affordable housing and the provision of services
10     related to affordable housing.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     requires certain political subdivisions to adopt an implementation plan as part of the
15     moderate income housing element of the political subdivision's general plan;
16          ▸     modifies the list of strategies that a political subdivision may select for
17     implementation as part of the moderate income housing element of the political
18     subdivision's general plan;
19          ▸     requires certain political subdivisions to amend the political subdivision's general
20     plan by a specified date if the general plan does not include certain provisions
21     related to moderate income housing;
22          ▸     modifies requirements for a political subdivision's annual moderate income housing
23     report to the Housing and Community Development Division (division) within the
24     Department of Workforce Services (department);
25          ▸     allows a political subdivision to have priority consideration for receiving certain
26     funds if the political subdivision demonstrates plans to implement a certain number
27     of moderate income housing strategies;

28          ▸     prohibits a political subdivision from receiving certain funds if the political
29     subdivision fails to comply with moderate income housing reporting requirements;
30          ▸     requires a political subdivision to require the owner of a dwelling to obtain a license
31     or permit for renting internal accessory dwelling units;
32          ▸     allows a political subdivision to require certain physical changes for internal
33     accessory dwelling units constructed before a specified date;
34          ▸     limits a political subdivision's ability to impose certain requirements on internal
35     accessory dwelling units constructed before a specified date;
36          ▸     prohibits a political subdivision from imposing impact fees for the construction of
37     certain internal accessory dwelling units;
38          ▸     requires the Point of the Mountain State Land Authority to ensure that a certain
39     percentage of the proposed housing units within the point of the mountain state land
40     are dedicated to affordable housing and to report annually to the Unified Economic
41     Opportunity Commission;
42          ▸     requires the division to develop a statewide database of moderate income housing
43     units;
44          ▸     requires the division to develop a methodology for determining whether a political
45     subdivision is complying with certain moderate income housing requirements, to be
46     submitted to and approved by the Commission on Housing Affordability by a
47     certain date;
48          ▸     modifies the membership of the Olene Walker Housing Loan Fund Board;
49          ▸     requires an entity that receives any money from the Olene Walker Housing Loan
50     Fund after a certain date to provide an annual accounting to the department;
51          ▸     repeals certain limits on the amount of money the department may distribute from
52     the Economic Revitalization and Investment Fund;
53          ▸     establishes the Rural Housing Fund, to be used by the division to provide loans for
54     certain moderate income housing projects in rural areas;
55          ▸     allows the department to use a certain amount of money from specified funds to
56     offset administrative costs;
57          ▸     allows the Private Activity Bond Review Board to transfer certain unused allotment
58     account funds to any other allotment account, and exempts such funds from certain

59     set aside requirements;
60          ▸     allows state entities, in addition to political subdivisions, to grant real property for
61     certain developments that include moderate income housing;
62          ▸     repeals provisions that prohibit a political subdivision from adopting certain
63     ordinances related to short-term rentals; and
64          ▸     makes technical and conforming changes.
65     Money Appropriated in this Bill:
66          This bill appropriates in fiscal year 2023:
67          ▸     to Department of Workforce Services -- Housing and Community Development, as
68     a one-time appropriation:
69               •     from the General Fund, $500,000;
70          ▸     to Department of Workforce Services -- Housing and Community Development, as
71     a one-time appropriation:
72               •     from the General Fund, $750,000;
73          ▸     to Department of Workforce Services -- Olene Walker Housing Loan Fund, as a
74     one-time appropriation:
75               •     from the General Fund, $50,000,000;
76          ▸     to Department of Workforce Services -- Housing and Community Development, as
77     an ongoing appropriation:
78               •     from the General Fund, $208,000;
79          ▸     to Department of Workforce Services -- Administration, as an ongoing
80     appropriation:
81               •     from the General Fund, $132,000;
82          ▸     to Department of Workforce Services -- Housing and Community Development, as
83     a one-time appropriation:
84               •     from the General Fund, $250,000;
85          ▸     to Department of Workforce Services -- Housing and Community Development, as
86     a one-time appropriation:
87                •     from the General Fund, $250,000;
88          ▸     to Department of Workforce Services -- Rural Housing Fund, as a one-time
89     appropriation:

90               •     from the General Fund, $50,000,000; and
91          ▸     to Governor's Office of Economic Opportunity -- Pass-Through, as a one-time
92     appropriation:
93               •     from the General Fund, $1,000,000.
94     Other Special Clauses:
95          None
96     Utah Code Sections Affected:
97     AMENDS:
98          10-9a-401, as last amended by Laws of Utah 2021, First Special Session, Chapter 3
99          10-9a-403, as last amended by Laws of Utah 2021, First Special Session, Chapter 3
100          10-9a-404, as last amended by Laws of Utah 2021, First Special Session, Chapter 3
101          10-9a-408, as last amended by Laws of Utah 2021, First Special Session, Chapter 3
102          10-9a-511.5, as last amended by Laws of Utah 2021, Chapter 102
103          10-9a-530, as enacted by Laws of Utah 2021, Chapter 102
104          11-36a-202, as last amended by Laws of Utah 2021, Chapter 35
105          11-59-203, as enacted by Laws of Utah 2018, Chapter 388
106          17-27a-401, as last amended by Laws of Utah 2021, Chapter 363
107          17-27a-403, as last amended by Laws of Utah 2021, First Special Session, Chapter 3
108          17-27a-404, as last amended by Laws of Utah 2021, Chapters 84, 345, and 355
109          17-27a-408, as last amended by Laws of Utah 2020, Chapter 434
110          17-27a-510.5, as last amended by Laws of Utah 2021, Chapter 102
111          17-27a-526, as enacted by Laws of Utah 2021, Chapter 102
112          35A-8-101, as last amended by Laws of Utah 2021, Chapter 281
113          35A-8-503, as last amended by Laws of Utah 2019, Chapter 327
114          35A-8-504, as last amended by Laws of Utah 2020, Chapter 241
115          35A-8-507.5, as enacted by Laws of Utah 2021, Chapter 333
116          35A-8-508, as last amended by Laws of Utah 2014, Chapter 371
117          35A-8-509, as enacted by Laws of Utah 2017, Chapter 279
118          35A-8-510, as enacted by Laws of Utah 2017, Chapter 279
119          35A-8-511, as enacted by Laws of Utah 2017, Chapter 279
120          35A-8-512, as enacted by Laws of Utah 2017, Chapter 279

121          35A-8-513, as enacted by Laws of Utah 2017, Chapter 279
122          35A-8-803, as last amended by Laws of Utah 2019, Chapter 327
123          35A-8-2105, as renumbered and amended by Laws of Utah 2018, Chapter 182
124          35A-8-2106, as renumbered and amended by Laws of Utah 2018, Chapter 182
125          35A-8-2203, as enacted by Laws of Utah 2018, Chapter 392
126          63J-4-802, as enacted by Laws of Utah 2021, First Special Session, Chapter 4
127          72-2-124, as last amended by Laws of Utah 2021, Chapters 239, 387, and 411
128     ENACTS:
129          35A-8-509.5, Utah Code Annotated 1953
130          63L-12-101, Utah Code Annotated 1953
131     RENUMBERS AND AMENDS:
132          63L-12-102, (Renumbered from 10-8-501, as enacted by Laws of Utah 2021, Chapter
133     333)
134     REPEALS:
135          10-8-85.4, as last amended by Laws of Utah 2021, Chapter 102
136          17-50-338, as last amended by Laws of Utah 2021, Chapter 102
137     

138     Be it enacted by the Legislature of the state of Utah:
139          Section 1. Section 10-9a-401 is amended to read:
140          10-9a-401. General plan required -- Content.
141          (1) In order to accomplish the purposes of this chapter, each municipality shall prepare
142     and adopt a comprehensive, long-range general plan for:
143          (a) present and future needs of the municipality; and
144          (b) growth and development of all or any part of the land within the municipality.
145          (2) The general plan may provide for:
146          (a) health, general welfare, safety, energy conservation, transportation, prosperity, civic
147     activities, aesthetics, and recreational, educational, and cultural opportunities;
148          (b) the reduction of the waste of physical, financial, or human resources that result
149     from either excessive congestion or excessive scattering of population;
150          (c) the efficient and economical use, conservation, and production of the supply of:
151          (i) food and water; and

152          (ii) drainage, sanitary, and other facilities and resources;
153          (d) the use of energy conservation and solar and renewable energy resources;
154          (e) the protection of urban development;
155          (f) if the municipality is a town, the protection or promotion of moderate income
156     housing;
157          (g) the protection and promotion of air quality;
158          (h) historic preservation;
159          (i) identifying future uses of land that are likely to require an expansion or significant
160     modification of services or facilities provided by each affected entity; and
161          (j) an official map.
162          [(3) (a) The general plan of a municipality, other than a town, shall plan for moderate
163     income housing growth.]
164          [(b) On or before December 1, 2019, each of the following that have a general plan that
165     does not comply with Subsection (3)(a) shall amend the general plan to comply with
166     Subsection (3)(a):]
167          [(i) a city of the first, second, third, or fourth class;]
168          [(ii) a city of the fifth class with a population of 5,000 or more, if the city is located
169     within a county of the first, second, or third class; and]
170          [(iii) a metro township with a population of 5,000 or more.]
171          [(c) The population figures described in Subsections (3)(b)(ii) and (iii) shall be derived
172     from:]
173          [(i) the most recent official census or census estimate of the United States Census
174     Bureau; or]
175          [(ii) if a population figure is not available under Subsection (3)(c)(i), an estimate of the
176     Utah Population Committee.]
177          (3) (a) The general plan of a specified municipality, as defined in Section 10-9a-408,
178     shall include a moderate income housing element that meets the requirements of Subsection
179     10-9a-403(2)(a)(iii).
180          (b) On or before October 1, 2022, a specified municipality, as defined in Section
181     10-9a-408, with a general plan that does not comply with Subsection (3)(a) shall amend the
182     general plan to comply with Subsection (3)(a).

183          (4) Subject to Subsection 10-9a-403(2), the municipality may determine the
184     comprehensiveness, extent, and format of the general plan.
185          Section 2. Section 10-9a-403 is amended to read:
186          10-9a-403. General plan preparation.
187          (1) (a) The planning commission shall provide notice, as provided in Section
188     10-9a-203, of [its] the planning commission's intent to make a recommendation to the
189     municipal legislative body for a general plan or a comprehensive general plan amendment
190     when the planning commission initiates the process of preparing [its] the planning
191     commission's recommendation.
192          (b) The planning commission shall make and recommend to the legislative body a
193     proposed general plan for the area within the municipality.
194          (c) The plan may include areas outside the boundaries of the municipality if, in the
195     planning commission's judgment, those areas are related to the planning of the municipality's
196     territory.
197          (d) Except as otherwise provided by law or with respect to a municipality's power of
198     eminent domain, when the plan of a municipality involves territory outside the boundaries of
199     the municipality, the municipality may not take action affecting that territory without the
200     concurrence of the county or other municipalities affected.
201          (2) (a) At a minimum, the proposed general plan, with the accompanying maps, charts,
202     and descriptive and explanatory matter, shall include the planning commission's
203     recommendations for the following plan elements:
204          (i) a land use element that:
205          (A) designates the long-term goals and the proposed extent, general distribution, and
206     location of land for housing for residents of various income levels, business, industry,
207     agriculture, recreation, education, public buildings and grounds, open space, and other
208     categories of public and private uses of land as appropriate; and
209          (B) [may include] includes a statement of the projections for and standards of
210     population density and building intensity recommended for the various land use categories
211     covered by the plan;
212          (ii) a transportation and traffic circulation element that:
213          (A) provides the general location and extent of existing and proposed freeways, arterial

214     and collector streets, public transit, active transportation facilities, and other modes of
215     transportation that the planning commission considers appropriate;
216          (B) for a municipality that has access to a major transit investment corridor, addresses
217     the municipality's plan for residential and commercial development around major transit
218     investment corridors to maintain and improve the connections between housing, employment,
219     education, recreation, and commerce;
220          (C) for a municipality that does not have access to a major transit investment corridor,
221     addresses the municipality's plan for residential and commercial development in areas that will
222     maintain and improve the connections between housing, transportation, employment,
223     education, recreation, and commerce; and
224          (D) correlates with the population projections, the employment projections, and the
225     proposed land use element of the general plan; and
226          [(iii) for a municipality described in Subsection 10-9a-401(3)(b), a plan that provides a
227     realistic opportunity to meet the need for additional moderate income housing.]
228          (iii) for a specified municipality as defined in Section 10-9a-408, a moderate income
229     housing element that:
230          (A) provides a realistic opportunity to meet the need for additional moderate income
231     housing within the next five years;
232          (B) selects three or more moderate income housing strategies described in Subsection
233     (2)(b)(iii) for implementation, including one additional moderate income housing strategy as
234     provided in Subsection (2)(b)(iv) for a specified municipality that has a fixed guideway public
235     transit station; and
236          (C) includes an implementation plan as provided in Subsection (2)(c).
237          (b) In drafting the moderate income housing element, the planning commission:
238          (i) shall consider the Legislature's determination that municipalities shall facilitate a
239     reasonable opportunity for a variety of housing, including moderate income housing:
240          (A) to meet the needs of people of various income levels living, working, or desiring to
241     live or work in the community; and
242          (B) to allow people with various incomes to benefit from and fully participate in all
243     aspects of neighborhood and community life;
244          (ii) for a town, may include, and for other municipalities, shall include, an analysis of

245     how the municipality will provide a realistic opportunity for the development of moderate
246     income housing within the next five years;
247          (iii) for a town, may include, and for other municipalities, shall include, a
248     recommendation to implement three or more of the following moderate income housing
249     strategies:
250          (A) rezone for densities necessary to [assure] facilitate the production of moderate
251     income housing;
252          (B) [facilitate] demonstrate investment in the rehabilitation or expansion of
253     infrastructure that [will encourage] facilitates the construction of moderate income housing;
254          (C) [facilitate] demonstrate investment in the rehabilitation of existing uninhabitable
255     housing stock into moderate income housing;
256          (D) [consider] identify and utilize general fund subsidies or other sources of revenue to
257     waive construction related fees that are otherwise generally imposed by the [city] municipality
258     for the construction or rehabilitation of moderate income housing;
259          (E) create or allow for, and reduce regulations related to, internal or detached accessory
260     dwelling units in residential zones;
261          (F) [allow] zone or rezone for higher density or moderate income residential
262     development in commercial [and] or mixed-use zones near major transit investment corridors,
263     commercial centers, or employment centers;
264          (G) [encourage higher density or] amend land use regulations to allow for higher
265     density or new moderate income residential development in commercial or mixed-use zones
266     near major transit investment corridors;
267          (H) amend land use regulations to eliminate or reduce parking requirements for
268     residential development where a resident is less likely to rely on the resident's own vehicle,
269     such as residential development near major transit investment corridors or senior living
270     facilities;
271          (I) amend land use regulations to allow for single room occupancy developments;
272          (J) implement zoning incentives for [low to] moderate income units in new
273     developments;
274          [(K) utilize strategies that preserve subsidized low to moderate income units on a
275     long-term basis;]

276          [(L)] (K) preserve existing and new moderate income housing and subsidized units by
277     utilizing a landlord incentive program, providing for deed restricted units through a grant
278     program, or establishing a housing loss mitigation fund;
279          [(M)] (L) reduce, waive, or eliminate impact fees[, as defined in Section 11-36a-102,]
280     related to [low and] moderate income housing;
281          [(N) participate in] (M) demonstrate creation of, or participation in, a community land
282     trust program for [low or] moderate income housing;
283          [(O)] (N) implement a mortgage assistance program for employees of the municipality
284     [or of], an employer that provides contracted services to the municipality, or any other public
285     employer that operates within the municipality;
286          [(P)] (O) apply for or partner with an entity that applies for state or federal funds or tax
287     incentives to promote the construction of moderate income housing, an entity that applies for
288     programs offered by the Utah Housing Corporation within that agency's funding capacity, an
289     entity that applies for affordable housing programs administered by the Department of
290     Workforce Services, an entity that applies for affordable housing programs administered by an
291     association of governments established by an interlocal agreement under Title 11, Chapter 13,
292     Interlocal Cooperation Act, an entity that applies for services provided by a public housing
293     authority to preserve and create moderate income housing, or any other entity that applies for
294     programs or services that promote the construction or preservation of moderate income
295     housing;
296          [(Q) apply for or partner with an entity that applies for programs offered by the Utah
297     Housing Corporation within that agency's funding capacity;]
298          [(R) apply for or partner with an entity that applies for affordable housing programs
299     administered by the Department of Workforce Services;]
300          [(S) apply for or partner with an entity that applies for programs administered by an
301     association of governments established by an interlocal agreement under Title 11, Chapter 13,
302     Interlocal Cooperation Act;]
303          [(T) apply for or partner with an entity that applies for services provided by a public
304     housing authority to preserve and create moderate income housing;]
305          [(U) apply for or partner with an entity that applies for programs administered by a
306     metropolitan planning organization or other transportation agency that provides technical

307     planning assistance;]
308          [(V) utilize] (P) demonstrate utilization of a moderate income housing set aside from a
309     community reinvestment agency, redevelopment agency, or community development and
310     renewal agency[; and] to create or subsidize moderate income housing;
311          (Q) create a housing and transit reinvestment zone pursuant to Title 63N, Chapter 3,
312     Part 6, Housing and Transit Reinvestment Zone Act;
313          (R) eliminate impact fees for any accessory dwelling unit that is not an internal
314     accessory dwelling unit as defined in Section 10-9a-530;
315          (S) create a program to transfer development rights for moderate income housing;
316          (T) ratify a joint acquisition agreement with another local political subdivision for the
317     purpose of combining resources to acquire property for moderate income housing;
318          (U) develop a moderate income housing project for residents who are disabled or 55
319     years of age or older; and
320          [(W)] (V) demonstrate implementation of any other program or strategy [implemented
321     by the municipality] to address the housing needs of residents of the municipality who earn less
322     than 80% of the area median income, including the dedication of a local funding source to
323     moderate income housing, or the adoption of a land use ordinance that requires 10% or more of
324     new residential development in a residential zone be dedicated to moderate income housing;
325     and
326          (iv) in addition to the recommendations required under Subsection (2)(b)(iii), for a
327     municipality that has a fixed guideway public transit station, shall include a recommendation to
328     implement the strategies described in Subsection (2)(b)(iii)(G) [or], (H), or (Q).
329          (c) (i) In drafting the implementation plan portion of the moderate income housing
330     element as described in Subsection (2)(a)(iii)(C), the planning commission shall establish a
331     timeline for implementing each of the moderate income housing strategies selected by the
332     municipality for implementation.
333          (ii) The timeline described in Subsection (2)(c)(i) shall:
334          (A) identify specific measures and benchmarks for implementing each moderate
335     income housing strategy selected by the municipality; and
336          (B) provide flexibility for the municipality to make adjustments as needed.
337          [(c)] (d) In drafting the land use element, the planning commission shall:

338          (i) identify and consider each agriculture protection area within the municipality; and
339          (ii) avoid proposing a use of land within an agriculture protection area that is
340     inconsistent with or detrimental to the use of the land for agriculture.
341          [(d)] (e) In drafting the transportation and traffic circulation element, the planning
342     commission shall:
343          (i) consider and coordinate with the regional transportation plan developed by [its] the
344     region's metropolitan planning organization, if the municipality is within the boundaries of a
345     metropolitan planning organization; or
346          (ii) consider and coordinate with the long-range transportation plan developed by the
347     Department of Transportation, if the municipality is not within the boundaries of a
348     metropolitan planning organization.
349          (3) The proposed general plan may include:
350          (a) an environmental element that addresses:
351          (i) the protection, conservation, development, and use of natural resources, including
352     the quality of air, forests, soils, rivers and other waters, harbors, fisheries, wildlife, minerals,
353     and other natural resources; and
354          (ii) the reclamation of land, flood control, prevention and control of the pollution of
355     streams and other waters, regulation of the use of land on hillsides, stream channels and other
356     environmentally sensitive areas, the prevention, control, and correction of the erosion of soils,
357     protection of watersheds and wetlands, and the mapping of known geologic hazards;
358          (b) a public services and facilities element showing general plans for sewage, water,
359     waste disposal, drainage, public utilities, rights-of-way, easements, and facilities for them,
360     police and fire protection, and other public services;
361          (c) a rehabilitation, redevelopment, and conservation element consisting of plans and
362     programs for:
363          (i) historic preservation;
364          (ii) the diminution or elimination of a development impediment as defined in Section
365     17C-1-102; and
366          (iii) redevelopment of land, including housing sites, business and industrial sites, and
367     public building sites;
368          (d) an economic element composed of appropriate studies and forecasts, as well as an

369     economic development plan, which may include review of existing and projected municipal
370     revenue and expenditures, revenue sources, identification of basic and secondary industry,
371     primary and secondary market areas, employment, and retail sales activity;
372          (e) recommendations for implementing all or any portion of the general plan, including
373     the use of land use ordinances, capital improvement plans, community development and
374     promotion, and any other appropriate action;
375          (f) provisions addressing any of the matters listed in Subsection 10-9a-401(2) or (3);
376     and
377          (g) any other element the municipality considers appropriate.
378          Section 3. Section 10-9a-404 is amended to read:
379          10-9a-404. Public hearing by planning commission on proposed general plan or
380     amendment -- Notice -- Revisions to general plan or amendment -- Adoption or rejection
381     by legislative body.
382          (1) (a) After completing its recommendation for a proposed general plan, or proposal to
383     amend the general plan, the planning commission shall schedule and hold a public hearing on
384     the proposed plan or amendment.
385          (b) The planning commission shall provide notice of the public hearing, as required by
386     Section 10-9a-204.
387          (c) After the public hearing, the planning commission may modify the proposed
388     general plan or amendment.
389          (2) The planning commission shall forward the proposed general plan or amendment to
390     the legislative body.
391          (3) (a) The legislative body may adopt, reject, or make any revisions to the proposed
392     general plan or amendment that it considers appropriate.
393          (b) If the municipal legislative body rejects the proposed general plan or amendment, it
394     may provide suggestions to the planning commission for the planning commission's review and
395     recommendation.
396          (4) The legislative body shall adopt:
397          (a) a land use element as provided in Subsection 10-9a-403(2)(a)(i);
398          (b) a transportation and traffic circulation element as provided in Subsection
399     10-9a-403(2)(a)(ii); and

400          [(c) for a municipality, other than a town, after considering the factors included in
401     Subsection 10-9a-403(2)(b)(iii), a plan to provide a realistic opportunity to meet the need for
402     additional moderate income housing within the next five years.]
403          (c) for a specified municipality as defined in Section 10-9a-408, a moderate income
404     housing element as provided in Subsection 10-9a-403(2)(a)(iii).
405          Section 4. Section 10-9a-408 is amended to read:
406          10-9a-408. Moderate income housing report -- Contents -- Prioritization for
407     funds -- Ineligibility for funds after noncompliance -- Civil actions.
408          [(1) The legislative body of a municipality described in Subsection 10-9a-401(3)(b)
409     shall annually:]
410          [(a) review the moderate income housing plan element of the municipality's general
411     plan and implementation of that element of the general plan;]
412          [(b) prepare a report on the findings of the review described in Subsection (1)(a); and]
413          [(c) post the report described in Subsection (1)(b) on the municipality's website.]
414          [(2) The report described in Subsection (1) shall include:]
415          [(a) a revised estimate of the need for moderate income housing in the municipality for
416     the next five years;]
417          [(b) a description of progress made within the municipality to provide moderate
418     income housing, demonstrated by analyzing and publishing data on the number of housing
419     units in the municipality that are at or below:]
420          [(i) 80% of the adjusted median family income;]
421          [(ii) 50% of the adjusted median family income; and]
422          [(iii) 30% of the adjusted median family income;]
423          [(c) a description of any efforts made by the municipality to utilize a moderate income
424     housing set-aside from a community reinvestment agency, redevelopment agency, or
425     community development and renewal agency; and]
426          [(d) a description of how the municipality has implemented any of the
427     recommendations related to moderate income housing described in Subsection
428     10-9a-403(2)(b)(iii).]
429          [(3) The legislative body of each municipality described in Subsection (1) shall send a
430     copy of the report under Subsection (1) to the Department of Workforce Services, the

431     association of governments in which the municipality is located, and, if located within the
432     boundaries of a metropolitan planning organization, the appropriate metropolitan planning
433     organization.]
434          (1) As used in this section:
435          (a) "Division" means the Housing and Community Development Division within the
436     Department of Workforce Services.
437          (b) "Implementation plan" means the implementation plan adopted as part of the
438     moderate income housing element of a specified municipality's general plan as provided in
439     Subsection 10-9a-403(2)(c).
440          (c) "Moderate income housing report" or "report" means the report described in
441     Subsection (2)(a).
442          (d) "Moderate income housing strategy" means a strategy described in Subsection
443     10-9a-403(2)(b)(iii).
444          (e) "Specified municipality" means:
445          (i) a city of the first, second, third, or fourth class;
446          (ii) a city of the fifth class with a population of 5,000 or more, if the city is located
447     within a county of the first, second, or third class; or
448          (iii) a metro township with a population of 5,000 or more.
449          (2) (a) Beginning in 2022, on or before October 1 of each calendar year, the legislative
450     body of a specified municipality shall annually submit a written moderate income housing
451     report to the division.
452          (b) The moderate income housing report submitted in 2022 shall include:
453          (i) a description of each moderate income housing strategy selected by the specified
454     municipality for implementation; and
455          (ii) an implementation plan.
456          (c) The moderate income housing report submitted in each calendar year after 2022
457     shall include:
458          (i) the information required under Subsection (2)(b);
459          (ii) a description of each action, whether one-time or ongoing, taken by the specified
460     municipality during the previous fiscal year to implement the moderate income housing
461     strategies selected by the specified municipality for implementation;

462          (iii) a description of each land use regulation or land use decision made by the
463     specified municipality during the previous fiscal year to implement the moderate income
464     housing strategies, including an explanation of how the land use regulation or land use decision
465     supports the specified municipality's efforts to implement the moderate income housing
466     strategies;
467          (iv) a description of any barriers encountered by the specified municipality in the
468     previous fiscal year in implementing the moderate income housing strategies;
469          (v) information regarding the number of internal and external or detached accessory
470     dwelling units located within the specified municipality for which the specified municipality:
471          (A) issued a building permit to construct; or
472          (B) issued a business license to rent;
473          (vi) a description of how the market has responded to the selected moderate income
474     housing strategies, including the number of entitled moderate income housing units or other
475     relevant data; and
476          (vii) any recommendations on how the state can support the specified municipality in
477     implementing the moderate income housing strategies.
478          (d) The moderate income housing report shall be in a form:
479          (i) approved by the division; and
480          (ii) made available by the division on or before July 1 of the year in which the report is
481     required.
482          (3) Within 90 days after the day on which the division receives a specified
483     municipality's moderate income housing report, the division shall:
484          (a) post the report on the division's website;
485          (b) send a copy of the report to the Department of Transportation, the Governor's
486     Office of Planning and Budget, the association of governments in which the specified
487     municipality is located, and, if the specified municipality is located within the boundaries of a
488     metropolitan planning organization, the appropriate metropolitan planning organization; and
489          (c) subject to Subsection (4), review the report to determine compliance with
490     Subsection (2).
491          (4) (a) The report described in Subsection (2)(b) complies with Subsection (2) if the
492     report:

493          (i) includes the information required under Subsection (2)(b);
494          (ii) demonstrates to the division that the specified municipality made plans to
495     implement:
496          (A) three or more moderate income housing strategies if the specified municipality
497     does not have a fixed guideway public transit station; or
498          (B) four or more moderate income housing strategies if the specified municipality has a
499     fixed guideway public transit station; and
500          (iii) is in a form approved by the division.
501          (b) The report described in Subsection (2)(c) complies with Subsection (2) if the
502     report:
503          (i) includes the information required under Subsection (2)(c);
504          (ii) demonstrates to the division that the specified municipality made plans to
505     implement:
506          (A) three or more moderate income housing strategies if the specified municipality
507     does not have a fixed guideway public transit station; or
508          (B) four or more moderate income housing strategies if the specified municipality has a
509     fixed guideway public transit station;
510          (iii) is in a form approved by the division; and
511          (iv) provides sufficient information for the division to:
512          (A) assess the specified municipality's progress in implementing the moderate income
513     housing strategies;
514          (B) monitor compliance with the specified municipality's implementation plan;
515          (C) identify a clear correlation between the specified municipality's land use
516     regulations and land use decisions and the specified municipality's efforts to implement the
517     moderate income housing strategies; and
518          (D) identify how the market has responded to the specified municipality's selected
519     moderate income housing strategies.
520          (5) (a) A specified municipality qualifies for priority consideration under this
521     Subsection (5) if the specified municipality's moderate income housing report:
522          (i) complies with Subsection (2); and
523          (ii) demonstrates to the division that the specified municipality made plans to

524     implement:
525          (A) five or more moderate income housing strategies if the specified municipality does
526     not have a fixed guideway public transit station; or
527          (B) six or more moderate income housing strategies if the specified municipality has a
528     fixed guideway public transit station.
529          (b) The following apply to a specified municipality described in Subsection (5)(a)
530     during the fiscal year immediately following the fiscal year in which the report is required:
531          (i) the Department of Transportation may give priority consideration for programming
532     funds from the Transportation Investment Fund of 2005, including the Transit Transportation
533     Investment Fund, to a project that is located within the boundaries of the specified municipality
534     in accordance with Subsection 72-2-124(11); and
535          (ii) the Governor's Office of Planning and Budget may give priority consideration for
536     awarding a financial grant to the specified municipality under the COVID-19 Local Assistance
537     Matching Grant Program in accordance with Subsection 63J-4-802(6).
538          (c) Upon determining that a specified municipality qualifies for priority consideration
539     under this Subsection (5), the division shall send a notice of prioritization to the legislative
540     body of the specified municipality, the Department of Transportation, and the Governor's
541     Office of Planning and Budget.
542          (d) The notice described in Subsection (5)(c) shall:
543          (i) name the specified municipality that qualifies for priority consideration;
544          (ii) describe the funds for which the specified municipality qualifies to receive priority
545     consideration;
546          (iii) specify the fiscal year during which the specified municipality qualifies for priority
547     consideration; and
548          (iv) state the basis for the division's determination that the specified municipality
549     qualifies for priority consideration.
550          (6) (a) If the division, after reviewing a specified municipality's moderate income
551     housing report, determines that the report does not comply with Subsection (2), the division
552     shall send a notice of noncompliance to the legislative body of the specified municipality.
553          (b) The notice described in Subsection (6)(a) shall:
554          (i) describe each deficiency in the report and the actions needed to cure each

555     deficiency;
556          (ii) state that the specified municipality has an opportunity to cure the deficiencies
557     within 90 days after the day on which the notice is sent; and
558          (iii) state that failure to cure the deficiencies within 45 days after the day on which the
559     notice is sent will result in ineligibility for funds under Subsection (7).
560          (7) (a) A specified municipality is ineligible for funds under this Subsection (7) if the
561     specified municipality:
562          (i) fails to submit a moderate income housing report to the division; or
563          (ii) fails to cure the deficiencies in the specified municipality's moderate income
564     housing report within 90 days after the day on which the division sent to the specified
565     municipality a notice of noncompliance under Subsection (6).
566          (b) The following apply to a specified municipality described in Subsection (7)(a)
567     during the fiscal year immediately following the fiscal year in which the report is required:
568          (i) the executive director of the Department of Transportation may not program funds
569     from the Transportation Investment Fund of 2005, including the Transit Transportation
570     Investment Fund, to a project that is located within the boundaries of the specified municipality
571     in accordance with Subsection 72-2-124(5); and
572          (ii) the Governor's Office of Planning and Budget may not award a financial grant to
573     the specified municipality under the COVID-19 Local Assistance Matching Grant Program in
574     accordance with Subsection 63J-4-802(7).
575          (c) Upon determining that a specified municipality is ineligible for funds under this
576     Subsection (7), the division shall send a notice of ineligibility to the legislative body of the
577     specified municipality, the Department of Transportation, and the Governor's Office of
578     Planning and Budget.
579          (d) The notice described in Subsection (7)(c) shall:
580          (i) name the specified municipality that is ineligible for funds;
581          (ii) describe the funds for which the specified municipality is ineligible to receive;
582          (iii) specify the fiscal year during which the specified municipality is ineligible for
583     funds; and
584          (iv) state the basis for the division's determination that the specified municipality is
585     ineligible for funds.

586          [(4)] (8) In a civil action seeking enforcement or claiming a violation of this section or
587     of Subsection 10-9a-404(4)(c), a plaintiff may not recover damages but may be awarded only
588     injunctive or other equitable relief.
589          Section 5. Section 10-9a-511.5 is amended to read:
590          10-9a-511.5. Changes to dwellings -- Egress windows.
591          (1) As used in this section:
592          (a) "Internal accessory dwelling unit" means an accessory dwelling unit created:
593          (i) within a primary dwelling;
594          (ii) within the footprint of the primary dwelling described in Subsection (1)(a)(i) at the
595     time the internal accessory dwelling unit is created; and
596          (iii) for the purpose of offering a long-term rental of 30 consecutive days or longer.
597          (b) "Primary dwelling" means a single-family dwelling that:
598          (i) is detached; and
599          (ii) is occupied as the primary residence of the owner of record.
600          (c) "Rental dwelling" means the same as that term is defined in Section 10-8-85.5.
601          (2) A municipal ordinance adopted under Section 10-1-203.5 may not:
602          (a) require physical changes in a structure with a legal nonconforming rental dwelling
603     use unless the change is for:
604          (i) the reasonable installation of:
605          (A) a smoke detector that is plugged in or battery operated;
606          (B) a ground fault circuit interrupter protected outlet on existing wiring;
607          (C) street addressing;
608          (D) except as provided in Subsection (3), an egress bedroom window if the existing
609     bedroom window is smaller than that required by current State Construction Code;
610          (E) an electrical system or a plumbing system, if the existing system is not functioning
611     or is unsafe as determined by an independent electrical or plumbing professional who is
612     licensed in accordance with Title 58, Occupations and Professions;
613          (F) hand or guard rails; or
614          (G) occupancy separation doors as required by the International Residential Code; or
615          (ii) the abatement of a structure; or
616          (b) be enforced to terminate a legal nonconforming rental dwelling use.

617          (3) (a) A municipality may not require physical changes to install an egress or
618     emergency escape window in an existing bedroom that complied with the State Construction
619     Code in effect at the time the bedroom was finished if:
620          (i) the dwelling is an owner-occupied dwelling or a rental dwelling that is:
621          (A) a detached one-, two-, three-, or four-family dwelling; or
622          (B) a town home that is not more than three stories above grade with a separate means
623     of egress; and
624          (ii) (A) the window in the existing bedroom is smaller than that required by current
625     State Construction Code; and
626          (B) the change would compromise the structural integrity of the structure or could not
627     be completed in accordance with current State Construction Code, including set-back and
628     window well requirements.
629          (b) Subject to Section 10-9a-530, Subsection (3)(a) [does not apply] applies only to an
630     internal accessory dwelling unit constructed before October 1, 2021.
631          (4) Nothing in this section prohibits a municipality from:
632          (a) regulating the style of window that is required or allowed in a bedroom;
633          (b) requiring that a window in an existing bedroom be fully openable if the openable
634     area is less than required by current State Construction Code; or
635          (c) requiring that an existing window not be reduced in size if the openable area is
636     smaller than required by current State Construction Code.
637          Section 6. Section 10-9a-530 is amended to read:
638          10-9a-530. Internal accessory dwelling units.
639          (1) As used in this section:
640          (a) "Internal accessory dwelling unit" means an accessory dwelling unit created:
641          (i) within a primary dwelling;
642          (ii) within the footprint of the primary dwelling described in Subsection (1)(a)(i) at the
643     time the internal accessory dwelling unit is created; and
644          (iii) for the purpose of offering a long-term rental of 30 consecutive days or longer.
645          (b) "Primary dwelling" means a single-family dwelling that:
646          (i) is detached; and
647          (ii) is occupied as the primary residence of the owner of record.

648          (2) In any area zoned primarily for residential use:
649          (a) the use of an internal accessory dwelling unit is a permitted use; and
650          (b) except as provided in [Subsections (3) and (4)] this section, a municipality may not
651     establish any restrictions or requirements for the construction or use of one internal accessory
652     dwelling unit within a primary dwelling, including a restriction or requirement governing:
653          (i) the size of the internal accessory dwelling unit in relation to the primary dwelling;
654          (ii) total lot size; or
655          (iii) street frontage.
656          (3) (a) This Subsection (3) applies only to an internal accessory dwelling unit
657     constructed on or after October 1, 2021.
658          [(3)] (b) An internal accessory dwelling unit described in Subsection (3)(a) shall
659     comply with all applicable building, health, and fire codes.
660          (c) A municipality shall require the owner of a primary dwelling to:
661          (i) obtain a permit or license for renting an internal accessory dwelling unit; or
662          (ii) obtain a building permit for constructing an internal accessory dwelling unit.
663          [(4)] (d) A municipality may:
664          [(a)] (i) prohibit the installation of a separate utility meter for an internal accessory
665     dwelling unit;
666          [(b)] (ii) require that an internal accessory dwelling unit be designed in a manner that
667     does not change the appearance of the primary dwelling as a single-family dwelling;
668          [(c)] (iii) require a primary dwelling:
669          [(i)] (A) to include one additional on-site parking space for an internal accessory
670     dwelling unit, regardless of whether the primary dwelling is existing or new construction; and
671          [(ii)] (B) to replace any parking spaces contained within a garage or carport if an
672     internal accessory dwelling unit is created within the garage or carport;
673          [(d)] (iv) prohibit the creation of an internal accessory dwelling unit within a mobile
674     home as defined in Section 57-16-3;
675          [(e) require the owner of a primary dwelling to obtain a permit or license for renting an
676     internal accessory dwelling unit;]
677          [(f)] (v) prohibit the creation of an internal accessory dwelling unit within a zoning
678     district covering an area that is equivalent to:

679          [(i)] (A) 25% or less of the total area in the municipality that is zoned primarily for
680     residential use; or
681          [(ii)] (B) 67% or less of the total area in the municipality that is zoned primarily for
682     residential use, if the main campus of a state or private university with a student population of
683     10,000 or more is located within the municipality;
684          [(g)] (vi) prohibit the creation of an internal accessory dwelling unit if the primary
685     dwelling is served by a failing septic tank;
686          [(h)] (vii) prohibit the creation of an internal accessory dwelling unit if the lot
687     containing the primary dwelling is 6,000 square feet or less in size;
688          [(i)] (viii) prohibit the rental or offering the rental of an internal accessory dwelling
689     unit for a period of less than 30 consecutive days;
690          [(j)] (ix) prohibit the rental of an internal accessory dwelling unit if the internal
691     accessory dwelling unit is located in a dwelling that is not occupied as the owner's primary
692     residence;
693          [(k)] (x) hold a lien against a property that contains an internal accessory dwelling unit
694     in accordance with Subsection (5); and
695          [(l)] (xi) record a notice for an internal accessory dwelling unit in accordance with
696     Subsection (6).
697          (4) (a) This Subsection (4) applies only to an internal accessory dwelling unit
698     constructed before October 1, 2021.
699          (b) A municipality shall require the owner of a primary dwelling to obtain a permit or
700     license for renting an internal accessory dwelling unit.
701          (c) In accordance with Section 10-9a-511.5, a municipality may require the owner of a
702     primary dwelling to:
703          (i) install a smoke detector within an internal accessory dwelling unit that is plugged in
704     or battery operated; and
705          (ii) by no later than May 4, 2025, install an egress bedroom window within an internal
706     accessory dwelling unit if the existing bedroom window is smaller than that required by current
707     State Construction Code.
708          (5) (a) In addition to any other legal or equitable remedies available to a municipality, a
709     municipality may hold a lien against a property that contains an internal accessory dwelling

710     unit if:
711          (i) the owner of the property violates any of the provisions of this section or any
712     ordinance adopted under Subsection (3) or (4);
713          (ii) the municipality provides a written notice of violation in accordance with
714     Subsection (5)(b);
715          (iii) the municipality holds a hearing and determines that the violation has occurred in
716     accordance with Subsection (5)(d), if the owner files a written objection in accordance with
717     Subsection (5)(b)(iv);
718          (iv) the owner fails to cure the violation within the time period prescribed in the
719     written notice of violation under Subsection (5)(b);
720          (v) the municipality provides a written notice of lien in accordance with Subsection
721     (5)(c); and
722          (vi) the municipality records a copy of the written notice of lien described in
723     Subsection (5)(a)(iv) with the county recorder of the county in which the property is located.
724          (b) The written notice of violation shall:
725          (i) describe the specific violation;
726          (ii) provide the owner of the internal accessory dwelling unit a reasonable opportunity
727     to cure the violation that is:
728          (A) no less than 14 days after the day on which the municipality sends the written
729     notice of violation, if the violation results from the owner renting or offering to rent the internal
730     accessory dwelling unit for a period of less than 30 consecutive days; or
731          (B) no less than 30 days after the day on which the municipality sends the written
732     notice of violation, for any other violation;
733          (iii) state that if the owner of the property fails to cure the violation within the time
734     period described in Subsection (5)(b)(ii), the municipality may hold a lien against the property
735     in an amount of up to $100 for each day of violation after the day on which the opportunity to
736     cure the violation expires;
737          (iv) notify the owner of the property:
738          (A) that the owner may file a written objection to the violation within 14 days after the
739     day on which the written notice of violation is post-marked or posted on the property; and
740          (B) of the name and address of the municipal office where the owner may file the

741     written objection;
742          (v) be mailed to:
743          (A) the property's owner of record; and
744          (B) any other individual designated to receive notice in the owner's license or permit
745     records; and
746          (vi) be posted on the property.
747          (c) The written notice of lien shall:
748          (i) comply with the requirements of Section 38-12-102;
749          (ii) state that the property is subject to a lien;
750          (iii) specify the lien amount, in an amount of up to $100 for each day of violation after
751     the day on which the opportunity to cure the violation expires;
752          (iv) be mailed to:
753          (A) the property's owner of record; and
754          (B) any other individual designated to receive notice in the owner's license or permit
755     records; and
756          (v) be posted on the property.
757          (d) (i) If an owner of property files a written objection in accordance with Subsection
758     (5)(b)(iv), the municipality shall:
759          (A) hold a hearing in accordance with Title 52, Chapter 4, Open and Public Meetings
760     Act, to conduct a review and determine whether the specific violation described in the written
761     notice of violation under Subsection (5)(b) has occurred; and
762          (B) notify the owner in writing of the date, time, and location of the hearing described
763     in Subsection (5)(d)(i)(A) no less than 14 days before the day on which the hearing is held.
764          (ii) If an owner of property files a written objection under Subsection (5)(b)(iv), a
765     municipality may not record a lien under this Subsection (5) until the municipality holds a
766     hearing and determines that the specific violation has occurred.
767          (iii) If the municipality determines at the hearing that the specific violation has
768     occurred, the municipality may impose a lien in an amount of up to $100 for each day of
769     violation after the day on which the opportunity to cure the violation expires, regardless of
770     whether the hearing is held after the day on which the opportunity to cure the violation has
771     expired.

772          (e) If an owner cures a violation within the time period prescribed in the written notice
773     of violation under Subsection (5)(b), the municipality may not hold a lien against the property,
774     or impose any penalty or fee on the owner, in relation to the specific violation described in the
775     written notice of violation under Subsection (5)(b).
776          (6) (a) A municipality that issues, on or after October 1, 2021, a permit or license to an
777     owner of a primary dwelling to rent an internal accessory dwelling unit, or a building permit to
778     an owner of a primary dwelling to create an internal accessory dwelling unit, may record a
779     notice in the office of the recorder of the county in which the primary dwelling is located.
780          (b) The notice described in Subsection (6)(a) shall include:
781          (i) a description of the primary dwelling;
782          (ii) a statement that the primary dwelling contains an internal accessory dwelling unit;
783     and
784          (iii) a statement that the internal accessory dwelling unit may only be used in
785     accordance with the municipality's land use regulations.
786          (c) The municipality shall, upon recording the notice described in Subsection (6)(a),
787     deliver a copy of the notice to the owner of the internal accessory dwelling unit.
788          Section 7. Section 11-36a-202 is amended to read:
789          11-36a-202. Prohibitions on impact fees.
790          (1) A local political subdivision or private entity may not:
791          (a) impose an impact fee to:
792          (i) cure deficiencies in a public facility serving existing development;
793          (ii) raise the established level of service of a public facility serving existing
794     development; or
795          (iii) recoup more than the local political subdivision's or private entity's costs actually
796     incurred for excess capacity in an existing system improvement;
797          (b) delay the construction of a school or charter school because of a dispute with the
798     school or charter school over impact fees; or
799          (c) impose or charge any other fees as a condition of development approval unless
800     those fees are a reasonable charge for the service provided.
801          (2) (a) Notwithstanding any other provision of this chapter, a political subdivision or
802     private entity may not impose an impact fee:

803          (i) on residential components of development to pay for a public safety facility that is a
804     fire suppression vehicle;
805          (ii) on a school district or charter school for a park, recreation facility, open space, or
806     trail;
807          (iii) on a school district or charter school unless:
808          (A) the development resulting from the school district's or charter school's
809     development activity directly results in a need for additional system improvements for which
810     the impact fee is imposed; and
811          (B) the impact fee is calculated to cover only the school district's or charter school's
812     proportionate share of the cost of those additional system improvements;
813          (iv) to the extent that the impact fee includes a component for a law enforcement
814     facility, on development activity for:
815          (A) the Utah National Guard;
816          (B) the Utah Highway Patrol; or
817          (C) a state institution of higher education that has its own police force; [or]
818          (v) on development activity on the state fair park, as defined in Section 63H-6-102[.];
819     or
820          (vi) on development activity that consists of the construction of an internal accessory
821     dwelling unit, as defined in Section 10-9a-530, within an existing structure.
822          (b) (i) Notwithstanding any other provision of this chapter, a political subdivision or
823     private entity may not impose an impact fee on development activity that consists of the
824     construction of a school, whether by a school district or a charter school, if:
825          (A) the school is intended to replace another school, whether on the same or a different
826     parcel;
827          (B) the new school creates no greater demand or need for public facilities than the
828     school or school facilities, including any portable or modular classrooms that are on the site of
829     the replaced school at the time that the new school is proposed; and
830          (C) the new school and the school being replaced are both within the boundary of the
831     local political subdivision or the jurisdiction of the private entity.
832          (ii) If the imposition of an impact fee on a new school is not prohibited under
833     Subsection (2)(b)(i) because the new school creates a greater demand or need for public

834     facilities than the school being replaced, the impact fee shall be based only on the demand or
835     need that the new school creates for public facilities that exceeds the demand or need that the
836     school being replaced creates for those public facilities.
837          (c) Notwithstanding any other provision of this chapter, a political subdivision or
838     private entity may impose an impact fee for a road facility on the state only if and to the extent
839     that:
840          (i) the state's development causes an impact on the road facility; and
841          (ii) the portion of the road facility related to an impact fee is not funded by the state or
842     by the federal government.
843          (3) Notwithstanding any other provision of this chapter, a local political subdivision
844     may impose and collect impact fees on behalf of a school district if authorized by Section
845     11-36a-206.
846          Section 8. Section 11-59-203 is amended to read:
847          11-59-203. Authority duties and responsibilities.
848          (1) As the authority plans, manages, and implements the development of the point of
849     the mountain state land, the authority shall pursue development strategies and objectives
850     designed to:
851          (a) maximize the creation of high-quality jobs and encourage and facilitate a highly
852     trained workforce;
853          (b) ensure strategic residential and commercial growth;
854          (c) promote a high quality of life for residents on and surrounding the point of the
855     mountain state land, including strategic planning to facilitate:
856          (i) jobs close to where people live;
857          (ii) vibrant urban centers;
858          (iii) housing types that match workforce needs;
859          (iv) parks, connected trails, and open space, including the preservation of natural lands
860     to the extent practicable and consistent with the overall development plan; and
861          (v) preserving and enhancing recreational opportunities;
862          (d) complement the development on land in the vicinity of the point of the mountain
863     state land;
864          (e) improve air quality and minimize resource use; and

865          (f) accommodate and incorporate the planning, funding, and development of an
866     enhanced and expanded future transit and transportation infrastructure and other investments,
867     including:
868          (i) the acquisition of rights-of-way and property necessary to ensure transit access to
869     the point of the mountain state land; and
870          (ii) a world class mass transit infrastructure, to service the point of the mountain state
871     land and to enhance mobility and protect the environment.
872          (2) In planning the development of the point of the mountain state land, the authority
873     shall:
874          (a) consult with applicable governmental planning agencies, including:
875          (i) relevant metropolitan planning organizations; and
876          (ii) Draper City and Salt Lake County planning and governing bodies;
877          (b) research and explore the feasibility of attracting a nationally recognized research
878     center; [and]
879          (c) research and explore the appropriateness of including labor training centers and a
880     higher education presence on the point of the mountain state land[.];
881          (d) ensure that at least 20% of the proposed housing units within the development of
882     the point of the mountain state land are dedicated to affordable housing, of which:
883          (i) at least 10% of the proposed housing units are dedicated to housing for households
884     whose income is no more than 50% of the area median income for households of the same size
885     in the county or municipality where the development is located; and
886          (ii) at least 10% of the proposed housing units are dedicated to housing for households
887     whose income is no more than 80% of the area median income for households of the same size
888     in the county or municipality where the development is located; and
889          (e) on or before October 1 of each year, submit an annual written report to the Unified
890     Economic Opportunity Commission created in Section 63N-1a-201 describing how the
891     development of the point of the mountain state land meets the requirements of Subsection
892     (2)(d).
893          Section 9. Section 17-27a-401 is amended to read:
894          17-27a-401. General plan required -- Content -- Resource management plan --
895     Provisions related to radioactive waste facility.

896          (1) To accomplish the purposes of this chapter, each county shall prepare and adopt a
897     comprehensive, long-range general plan:
898          (a) for present and future needs of the county;
899          (b) (i) for growth and development of all or any part of the land within the
900     unincorporated portions of the county; or
901          (ii) if a county has designated a mountainous planning district, for growth and
902     development of all or any part of the land within the mountainous planning district; and
903          (c) as a basis for communicating and coordinating with the federal government on land
904     and resource management issues.
905          (2) To promote health, safety, and welfare, the general plan may provide for:
906          (a) health, general welfare, safety, energy conservation, transportation, prosperity, civic
907     activities, aesthetics, and recreational, educational, and cultural opportunities;
908          (b) the reduction of the waste of physical, financial, or human resources that result
909     from either excessive congestion or excessive scattering of population;
910          (c) the efficient and economical use, conservation, and production of the supply of:
911          (i) food and water; and
912          (ii) drainage, sanitary, and other facilities and resources;
913          (d) the use of energy conservation and solar and renewable energy resources;
914          (e) the protection of urban development;
915          (f) the protection and promotion of air quality;
916          (g) historic preservation;
917          (h) identifying future uses of land that are likely to require an expansion or significant
918     modification of services or facilities provided by each affected entity; and
919          (i) an official map.
920          [(3) (a) The general plan shall:]
921          [(i) allow and plan for moderate income housing growth; and]
922          (3) (a) (i) The general plan of a specified county, as defined in Section 17-27a-408,
923     shall include a moderate income housing element that meets the requirements of Subsection
924     17-27a-403(2)(a)(iii).
925          [(ii) contain a resource management plan for the public lands, as defined in Section
926     63L-6-102, within the county .]

927          [(b)] (ii) On or before [December 1, 2019, a] October 1, 2022, a specified county, as
928     defined in Section 17-27a-408, with a general plan that does not comply with Subsection
929     (3)(a)(i) shall amend the general plan to comply with Subsection (3)(a)(i).
930          (b) The general plan shall contain a resource management plan for the public lands, as
931     defined in Section 63L-6-102, within the county.
932          (c) The resource management plan described in Subsection [(3)(a)(ii)] (3)(b) shall
933     address:
934          (i) mining;
935          (ii) land use;
936          (iii) livestock and grazing;
937          (iv) irrigation;
938          (v) agriculture;
939          (vi) fire management;
940          (vii) noxious weeds;
941          (viii) forest management;
942          (ix) water rights;
943          (x) ditches and canals;
944          (xi) water quality and hydrology;
945          (xii) flood plains and river terraces;
946          (xiii) wetlands;
947          (xiv) riparian areas;
948          (xv) predator control;
949          (xvi) wildlife;
950          (xvii) fisheries;
951          (xviii) recreation and tourism;
952          (xix) energy resources;
953          (xx) mineral resources;
954          (xxi) cultural, historical, geological, and paleontological resources;
955          (xxii) wilderness;
956          (xxiii) wild and scenic rivers;
957          (xxiv) threatened, endangered, and sensitive species;

958          (xxv) land access;
959          (xxvi) law enforcement;
960          (xxvii) economic considerations; and
961          (xxviii) air.
962          (d) For each item listed under Subsection (3)(c), a county's resource management plan
963     shall:
964          (i) establish findings pertaining to the item;
965          (ii) establish defined objectives; and
966          (iii) outline general policies and guidelines on how the objectives described in
967     Subsection (3)(d)(ii) are to be accomplished.
968          (4) (a) (i) The general plan shall include specific provisions related to any areas within,
969     or partially within, the exterior boundaries of the county, or contiguous to the boundaries of a
970     county, which are proposed for the siting of a storage facility or transfer facility for the
971     placement of high-level nuclear waste or greater than class C radioactive nuclear waste, as
972     these wastes are defined in Section 19-3-303.
973          (ii) The provisions described in Subsection (4)(a)(i) shall address the effects of the
974     proposed site upon the health and general welfare of citizens of the state, and shall provide:
975          [(i)] (A) the information identified in Section 19-3-305;
976          [(ii)] (B) information supported by credible studies that demonstrates that the
977     provisions of Subsection 19-3-307(2) have been satisfied; and
978          [(iii)] (C) specific measures to mitigate the effects of high-level nuclear waste and
979     greater than class C radioactive waste and guarantee the health and safety of the citizens of the
980     state.
981          (b) A county may, in lieu of complying with Subsection (4)(a), adopt an ordinance
982     indicating that all proposals for the siting of a storage facility or transfer facility for the
983     placement of high-level nuclear waste or greater than class C radioactive waste wholly or
984     partially within the county are rejected.
985          (c) A county may adopt the ordinance listed in Subsection (4)(b) at any time.
986          (d) The county shall send a certified copy of the ordinance described in Subsection
987     (4)(b) to the executive director of the Department of Environmental Quality by certified mail
988     within 30 days of enactment.

989          (e) If a county repeals an ordinance adopted under Subsection (4)(b) the county shall:
990          (i) comply with Subsection (4)(a) as soon as reasonably possible; and
991          (ii) send a certified copy of the repeal to the executive director of the Department of
992     Environmental Quality by certified mail within 30 days after the repeal.
993          (5) The general plan may define the county's local customs, local culture, and the
994     components necessary for the county's economic stability.
995          (6) Subject to Subsection 17-27a-403(2), the county may determine the
996     comprehensiveness, extent, and format of the general plan.
997          (7) If a county has designated a mountainous planning district, the general plan for the
998     mountainous planning district is the controlling plan.
999          (8) Nothing in this part may be construed to limit the authority of the state to manage
1000     and protect wildlife under Title 23, Wildlife Resources Code of Utah.
1001          Section 10. Section 17-27a-403 is amended to read:
1002          17-27a-403. Plan preparation.
1003          (1) (a) The planning commission shall provide notice, as provided in Section
1004     17-27a-203, of [its] the planning commission's intent to make a recommendation to the county
1005     legislative body for a general plan or a comprehensive general plan amendment when the
1006     planning commission initiates the process of preparing [its] the planning commission's
1007     recommendation.
1008          (b) The planning commission shall make and recommend to the legislative body a
1009     proposed general plan for:
1010          (i) the unincorporated area within the county; or
1011          (ii) if the planning commission is a planning commission for a mountainous planning
1012     district, the mountainous planning district.
1013          (c) (i) The plan may include planning for incorporated areas if, in the planning
1014     commission's judgment, they are related to the planning of the unincorporated territory or of
1015     the county as a whole.
1016          (ii) Elements of the county plan that address incorporated areas are not an official plan
1017     or part of a municipal plan for any municipality, unless the county plan is recommended by the
1018     municipal planning commission and adopted by the governing body of the municipality.
1019          (2) (a) At a minimum, the proposed general plan, with the accompanying maps, charts,

1020     and descriptive and explanatory matter, shall include the planning commission's
1021     recommendations for the following plan elements:
1022          (i) a land use element that:
1023          (A) designates the long-term goals and the proposed extent, general distribution, and
1024     location of land for housing for residents of various income levels, business, industry,
1025     agriculture, recreation, education, public buildings and grounds, open space, and other
1026     categories of public and private uses of land as appropriate; and
1027          (B) [may include] includes a statement of the projections for and standards of
1028     population density and building intensity recommended for the various land use categories
1029     covered by the plan;
1030          (ii) a transportation and traffic circulation element that:
1031          (A) provides the general location and extent of existing and proposed freeways, arterial
1032     and collector streets, public transit, active transportation facilities, and other modes of
1033     transportation that the planning commission considers appropriate;
1034          (B) addresses the county's plan for residential and commercial development around
1035     major transit investment corridors to maintain and improve the connections between housing,
1036     employment, education, recreation, and commerce; and
1037          (C) correlates with the population projections, the employment projections, and the
1038     proposed land use element of the general plan;
1039          [(iii) a plan for the development of additional moderate income housing within the
1040     unincorporated area of the county or the mountainous planning district, and a plan to provide a
1041     realistic opportunity to meet the need for additional moderate income housing; and]
1042          (iii) for a specified county as defined in Section 17-27a-408, a moderate income
1043     housing element that:
1044          (A) provides a realistic opportunity to meet the need for additional moderate income
1045     housing within the next five years;
1046          (B) selects three or more moderate income housing strategies described in Subsection
1047     (2)(b)(ii) for implementation; and
1048          (C) includes an implementation plan as provided in Subsection (2)(e); and
1049          (iv) [before May 1, 2017,] a resource management plan detailing the findings,
1050     objectives, and policies required by Subsection 17-27a-401(3).

1051          (b) In drafting the moderate income housing element, the planning commission:
1052          (i) shall consider the Legislature's determination that counties should facilitate a
1053     reasonable opportunity for a variety of housing, including moderate income housing:
1054          (A) to meet the needs of people of various income levels living, working, or desiring to
1055     live or work in the community; and
1056          (B) to allow people with various incomes to benefit from and fully participate in all
1057     aspects of neighborhood and community life; and
1058          (ii) shall include an analysis of how the county will provide a realistic opportunity for
1059     the development of moderate income housing within the planning horizon, [which may
1060     include] including a recommendation to implement three or more of the following moderate
1061     income housing strategies:
1062          (A) rezone for densities necessary to [assure] facilitate the production of moderate
1063     income housing;
1064          (B) [facilitate] demonstrate investment in the rehabilitation or expansion of
1065     infrastructure that [will encourage] facilitates the construction of moderate income housing;
1066          (C) [facilitate] demonstrate investment in the rehabilitation of existing uninhabitable
1067     housing stock into moderate income housing;
1068          (D) [consider] identify and utilize county general fund subsidies or other sources of
1069     revenue to waive construction related fees that are otherwise generally imposed by the county
1070     for the construction or rehabilitation of moderate income housing;
1071          (E) create or allow for, and reduce regulations related to, internal or detached accessory
1072     dwelling units in residential zones;
1073          (F) [allow] zone or rezone for higher density or moderate income residential
1074     development in commercial [and] or mixed-use zones, commercial centers, or employment
1075     centers;
1076          (G) [encourage] amend land use regulations to allow for higher density or new
1077     moderate income residential development in commercial or mixed-use zones near major transit
1078     investment corridors;
1079          (H) amend land use regulations to eliminate or reduce parking requirements for
1080     residential development where a resident is less likely to rely on the resident's own vehicle,
1081     such as residential development near major transit investment corridors or senior living

1082     facilities;
1083          (I) amend land use regulations to allow for single room occupancy developments;
1084          (J) implement zoning incentives for [low to] moderate income units in new
1085     developments;
1086          [(K) utilize strategies that preserve subsidized low to moderate income units on a
1087     long-term basis;]
1088          [(L)] (K) preserve existing and new moderate income housing and subsidized units by
1089     utilizing a landlord incentive program, providing for deed restricted units through a grant
1090     program, or establishing a housing loss mitigation fund;
1091          [(M)] (L) reduce, waive, or eliminate impact fees[, as defined in Section 11-36a-102,]
1092     related to [low and] moderate income housing;
1093          [(N) participate in] (M) demonstrate creation of, or participation in, a community land
1094     trust program for [low or] moderate income housing;
1095          [(O)] (N) implement a mortgage assistance program for employees of the county [or
1096     of], an employer that provides contracted services for the county, or any other public employer
1097     that operates within the county;
1098          [(P)] (O) apply for or partner with an entity that applies for state or federal funds or tax
1099     incentives to promote the construction of moderate income housing, an entity that applies for
1100     programs offered by the Utah Housing Corporation within that agency's funding capacity, an
1101     entity that applies for affordable housing programs administered by the Department of
1102     Workforce Services, an entity that applies for services provided by a public housing authority
1103     to preserve and create moderate income housing, or any other entity that applies for programs
1104     or services that promote the construction or preservation of moderate income housing;
1105          [(Q) apply for or partner with an entity that applies for programs offered by the Utah
1106     Housing Corporation within that agency's funding capacity;]
1107          [(R) apply for or partner with an entity that applies for affordable housing programs
1108     administered by the Department of Workforce Services;]
1109          [(S) apply for or partner with an entity that applies for services provided by a public
1110     housing authority to preserve and create moderate income housing;]
1111          [(T) apply for or partner with an entity that applies for programs administered by a
1112     metropolitan planning organization or other transportation agency that provides technical

1113     planning assistance;]
1114          [(U) utilize] (P) demonstrate utilization of a moderate income housing set aside from a
1115     community reinvestment agency, redevelopment agency, or community development and
1116     renewal agency to create or subsidize moderate income housing; [and]     
1117          (Q) create a program to transfer development rights for moderate income housing;
1118          (R) ratify a joint acquisition agreement with another local political subdivision for the
1119     purpose of combining resources to acquire property for moderate income housing;
1120          (S) develop a moderate income housing project for residents who are disabled or 55
1121     years of age or older; and
1122          [(V) consider] (T) demonstrate implementation of any other program or strategy
1123     [implemented by the county] to address the housing needs of residents of the county who earn
1124     less than 80% of the area median income, including the dedication of a local funding source to
1125     moderate income housing or the adoption of a land use ordinance that requires 10% or more of
1126     new residential development in a residential zone be dedicated to moderate income housing.
1127          (c) In drafting the land use element, the planning commission shall:
1128          (i) identify and consider each agriculture protection area within the unincorporated area
1129     of the county or mountainous planning district; and
1130          (ii) avoid proposing a use of land within an agriculture protection area that is
1131     inconsistent with or detrimental to the use of the land for agriculture.
1132          (d) In drafting the transportation and traffic circulation element, the planning
1133     commission shall:
1134          (i) consider and coordinate with the regional transportation plan developed by [its] the
1135     region's metropolitan planning organization, if the relevant areas of the county are within the
1136     boundaries of a metropolitan planning organization; or
1137          (ii) consider and coordinate with the long-range transportation plan developed by the
1138     Department of Transportation, if the relevant areas of the county are not within the boundaries
1139     of a metropolitan planning organization.
1140          (e) (i) In drafting the implementation plan portion of the moderate income housing
1141     element as described in Subsection (2)(a)(iii)(C), the planning commission shall establish a
1142     timeline for implementing each of the moderate income housing strategies selected by the
1143     county for implementation.

1144          (ii) The timeline described in Subsection (2)(e)(i) shall:
1145          (A) identify specific measures and benchmarks for implementing each moderate
1146     income housing strategy selected by the county; and
1147          (B) provide flexibility for the county to make adjustments as needed.
1148          (3) The proposed general plan may include:
1149          (a) an environmental element that addresses:
1150          (i) to the extent not covered by the county's resource management plan, the protection,
1151     conservation, development, and use of natural resources, including the quality of air, forests,
1152     soils, rivers and other waters, harbors, fisheries, wildlife, minerals, and other natural resources;
1153     and
1154          (ii) the reclamation of land, flood control, prevention and control of the pollution of
1155     streams and other waters, regulation of the use of land on hillsides, stream channels and other
1156     environmentally sensitive areas, the prevention, control, and correction of the erosion of soils,
1157     protection of watersheds and wetlands, and the mapping of known geologic hazards;
1158          (b) a public services and facilities element showing general plans for sewage, water,
1159     waste disposal, drainage, public utilities, rights-of-way, easements, and facilities for them,
1160     police and fire protection, and other public services;
1161          (c) a rehabilitation, redevelopment, and conservation element consisting of plans and
1162     programs for:
1163          (i) historic preservation;
1164          (ii) the diminution or elimination of a development impediment as defined in Section
1165     17C-1-102; and
1166          (iii) redevelopment of land, including housing sites, business and industrial sites, and
1167     public building sites;
1168          (d) an economic element composed of appropriate studies and forecasts, as well as an
1169     economic development plan, which may include review of existing and projected county
1170     revenue and expenditures, revenue sources, identification of basic and secondary industry,
1171     primary and secondary market areas, employment, and retail sales activity;
1172          (e) recommendations for implementing all or any portion of the general plan, including
1173     the use of land use ordinances, capital improvement plans, community development and
1174     promotion, and any other appropriate action;

1175          (f) provisions addressing any of the matters listed in Subsection 17-27a-401(2) or
1176     (3)(a)(i); and
1177          (g) any other element the county considers appropriate.
1178          Section 11. Section 17-27a-404 is amended to read:
1179          17-27a-404. Public hearing by planning commission on proposed general plan or
1180     amendment -- Notice -- Revisions to general plan or amendment -- Adoption or rejection
1181     by legislative body.
1182          (1) (a) After completing its recommendation for a proposed general plan, or proposal to
1183     amend the general plan, the planning commission shall schedule and hold a public hearing on
1184     the proposed plan or amendment.
1185          (b) The planning commission shall provide notice of the public hearing, as required by
1186     Section 17-27a-204.
1187          (c) After the public hearing, the planning commission may modify the proposed
1188     general plan or amendment.
1189          (2) The planning commission shall forward the proposed general plan or amendment to
1190     the legislative body.
1191          (3) (a) As provided by local ordinance and by Section 17-27a-204, the legislative body
1192     shall provide notice of its intent to consider the general plan proposal.
1193          (b) (i) In addition to the requirements of Subsections (1), (2), and (3)(a), the legislative
1194     body shall hold a public hearing in Salt Lake City on provisions of the proposed county plan
1195     regarding Subsection 17-27a-401(4). The hearing procedure shall comply with this Subsection
1196     (3)(b).
1197          (ii) The hearing format shall allow adequate time for public comment at the actual
1198     public hearing, and shall also allow for public comment in writing to be submitted to the
1199     legislative body for not fewer than 90 days after the date of the public hearing.
1200          (c) (i) The legislative body shall give notice of the hearing in accordance with this
1201     Subsection (3) when the proposed plan provisions required by Subsection 17-27a-401(4) are
1202     complete.
1203          (ii) Direct notice of the hearing shall be given, in writing, to the governor, members of
1204     the state Legislature, executive director of the Department of Environmental Quality, the state
1205     planning coordinator, the Resource Development Coordinating Committee, and any other

1206     citizens or entities who specifically request notice in writing.
1207          (iii) Public notice shall be given by publication on the Utah Public Notice Website
1208     created in Section 63A-16-601.
1209          (iv) The notice shall be published to allow reasonable time for interested parties and
1210     the state to evaluate the information regarding the provisions of Subsection 17-27a-401(4),
1211     including publication described in Subsection (3)(c)(iii) for 180 days before the date of the
1212     hearing to be held under this Subsection (3).
1213          (4) (a) After the public hearing required under this section, the legislative body may
1214     adopt, reject, or make any revisions to the proposed general plan that it considers appropriate.
1215          (b) The legislative body shall respond in writing and in a substantive manner to all
1216     those providing comments as a result of the hearing required by Subsection (3).
1217          (c) If the county legislative body rejects the proposed general plan or amendment, it
1218     may provide suggestions to the planning commission for the planning commission's review and
1219     recommendation.
1220          (5) The legislative body shall adopt:
1221          (a) a land use element as provided in Subsection 17-27a-403(2)(a)(i);
1222          (b) a transportation and traffic circulation element as provided in Subsection
1223     17-27a-403(2)(a)(ii);
1224          [(c) after considering the factors included in Subsection 17-27a-403(2)(b), a plan to
1225     provide a realistic opportunity to meet the need for additional moderate income housing; and]
1226          (c) for a specified county as defined in Section 17-27-408, a moderate income housing
1227     element as provided in Subsection 17-27a-403(2)(a)(iii); and
1228          (d) [before August 1, 2017,] a resource management plan as provided by Subsection
1229     17-27a-403(2)(a)(iv).
1230          Section 12. Section 17-27a-408 is amended to read:
1231          17-27a-408. Moderate income housing report -- Contents -- Prioritization for
1232     funds -- Ineligibility for funds after noncompliance -- Civil actions.
1233          [(1) The legislative body of each county of the first, second, or third class, which has a
1234     population in the county's unincorporated areas of more than 5,000 residents, shall annually:]
1235          [(a) review the moderate income housing plan element of the county's general plan and
1236     implementation of that element of the general plan;]

1237          [(b) prepare a report on the findings of the review described in Subsection (1)(a); and]
1238          [(c) post the report described in Subsection (1)(b) on the county's website.]
1239          [(2) The report described in Subsection (1) shall include:]
1240          [(a) a revised estimate of the need for moderate income housing in the unincorporated
1241     areas of the county for the next five years;]
1242          [(b) a description of progress made within the unincorporated areas of the county to
1243     provide moderate income housing demonstrated by analyzing and publishing data on the
1244     number of housing units in the county that are at or below:]
1245          [(i) 80% of the adjusted median family income;]
1246          [(ii) 50% of the adjusted median family income; and]
1247          [(iii) 30% of the adjusted median family income;]
1248          [(c) a description of any efforts made by the county to utilize a moderate income
1249     housing set-aside from a community reinvestment agency, redevelopment agency, or a
1250     community development and renewal agency; and]
1251          [(d) a description of how the county has implemented any of the recommendations
1252     related to moderate income housing described in Subsection 17-27a-403(2)(b)(ii).]
1253          [(3) The legislative body of each county described in Subsection (1) shall send a copy
1254     of the report under Subsection (1) to the Department of Workforce Services, the association of
1255     governments in which the county is located, and, if the unincorporated area of the county is
1256     located within the boundaries of a metropolitan planning organization, the appropriate
1257     metropolitan planning organization.]     (1) As used in this section:
1258          (a) "Division" means the Housing and Community Development Division within the
1259     Department of Workforce Services.
1260          (b) "Implementation plan" means the implementation plan adopted as part of the
1261     moderate income housing element of a specified county's general plan as provided in
1262     Subsection 10-9a-403(2)(c).
1263          (c) "Moderate income housing report" or "report" means the report described in
1264     Subsection (2)(a).
1265          (d) "Moderate income housing strategy" means a strategy described in Subsection
1266     17-27a-403(2)(b)(ii).
1267          (e) "Specified county" means a county of the first, second, or third class, which has a

1268     population of more than 5,000 in the county's unincorporated areas.
1269          (2) (a) Beginning in 2022, on or before October 1 of each calendar year, the legislative
1270     body of a specified county shall annually submit a written moderate income housing report to
1271     the division.
1272          (b) The moderate income housing report submitted in 2022 shall include:
1273          (i) a description of each moderate income housing strategy selected by the specified
1274     county for implementation; and
1275          (ii) an implementation plan.
1276          (c) The moderate income housing report submitted in each calendar year after 2022
1277     shall include:
1278          (i) the information required under Subsection (2)(b);
1279          (ii) a description of each action, whether one-time or ongoing, taken by the specified
1280     county during the previous fiscal year to implement the moderate income housing strategies
1281     selected by the specified county for implementation;
1282          (iii) a description of each land use regulation or land use decision made by the
1283     specified county during the previous fiscal year to implement the moderate income housing
1284     strategies, including an explanation of how the land use regulation or land use decision
1285     supports the specified county's efforts to implement the moderate income housing strategies;
1286          (iv) a description of any barriers encountered by the specified county in the previous
1287     fiscal year in implementing the moderate income housing strategies; and
1288          (v) information regarding the number of internal and external or detached accessory
1289     dwelling units located within the specified county for which the specified county:
1290          (A) issued a building permit to construct; or
1291          (B) issued a business license to rent;
1292          (vi) a description of how the market has responded to the selected moderate income
1293     housing strategies, including the number of entitled moderate income housing units or other
1294     relevant data; and
1295          (vii) any recommendations on how the state can support the specified county in
1296     implementing the moderate income housing strategies.
1297          (d) The moderate income housing report shall be in a form:
1298          (i) approved by the division; and

1299          (ii) made available by the division on or before July 1 of the year in which the report is
1300     required.
1301          (3) Within 90 days after the day on which the division receives a specified county's
1302     moderate income housing report, the division shall:
1303          (a) post the report on the division's website;
1304          (b) send a copy of the report to the Department of Transportation, the Governor's
1305     Office of Planning and Budget, the association of governments in which the specified county is
1306     located, and, if the unincorporated area of the specified county is located within the boundaries
1307     of a metropolitan planning organization, the appropriate metropolitan planning organization;
1308     and
1309          (c) subject to Subsection (4), review the report to determine compliance with
1310     Subsection (2).
1311          (4) (a) The report described in Subsection (2)(b) complies with Subsection (2) if the
1312     report:
1313          (i) includes the information required under Subsection (2)(b);
1314          (ii) demonstrates to the division that the specified county made plans to implement
1315     three or more moderate income housing strategies; and
1316          (iii) is in a form approved by the division.
1317          (b) The report described in Subsection (2)(c) complies with Subsection (2) if the
1318     report:
1319          (i) includes the information required under Subsection (2)(c);
1320          (ii) demonstrates to the division that the specified county made plans to implement
1321     three or more moderate income housing strategies;
1322          (iii) is in a form approved by the division; and
1323          (iv) provides sufficient information for the division to:
1324          (A) assess the specified county's progress in implementing the moderate income
1325     housing strategies;
1326          (B) monitor compliance with the specified county's implementation plan;
1327          (C) identify a clear correlation between the specified county's land use decisions and
1328     efforts to implement the moderate income housing strategies; and
1329          (D) identify how the market has responded to the specified county's selected moderate

1330     income housing strategies.
1331          (5) (a) A specified county qualifies for priority consideration under this Subsection (5)
1332     if the specified county's moderate income housing report:
1333          (i) complies with Subsection (2); and
1334          (ii) demonstrates to the division that the specified county made plans to implement five
1335     or more moderate income housing strategies.
1336          (b) The following apply to a specified county described in Subsection (5)(a) during the
1337     fiscal year immediately following the fiscal year in which the report is required:
1338          (i) the Department of Transportation may give priority consideration for programming
1339     funds from the Transportation Investment Fund of 2005, including the Transit Transportation
1340     Investment Fund, to a project that is located within the unincorporated areas of the specified
1341     county in accordance with Subsection 72-2-124(11); and
1342          (ii) the Governor's Office of Planning and Budget may give priority consideration for
1343     awarding a financial grant to the specified county under the COVID-19 Local Assistance
1344     Matching Grant Program in accordance with Subsection 63J-4-802(6).
1345          (c) Upon determining that a specified county qualifies for priority consideration under
1346     this Subsection (5), the division shall send a notice of prioritization to the legislative body of
1347     the specified county, the Department of Transportation, and the Governor's Office of Planning
1348     and Budget.
1349          (d) The notice described in Subsection (5)(c) shall:
1350          (i) name the specified county that qualifies for priority consideration;
1351          (ii) describe the funds for which the specified county qualifies to receive priority
1352     consideration;
1353          (iii) specify the fiscal year during which the specified county qualifies for priority
1354     consideration; and
1355          (iv) state the basis for the division's determination that the specified county qualifies
1356     for priority consideration.
1357          (6) (a) If the division, after reviewing a specified county's moderate income housing
1358     report, determines that the report does not comply with Subsection (2), the division shall send a
1359     notice of noncompliance to the legislative body of the specified county.
1360          (b) The notice described in Subsection (6)(a) shall:

1361          (i) describe each deficiency in the report and the actions needed to cure each
1362     deficiency;
1363          (ii) state that the specified county has an opportunity to cure the deficiencies within 45
1364     days after the day on which the notice is sent; and
1365          (iii) state that failure to cure the deficiencies within 90 days after the day on which the
1366     notice is sent will result in ineligibility for funds under Subsection (7).
1367          (7) (a) A specified county is ineligible for funds under this Subsection (7) if the
1368     specified county:
1369          (i) fails to submit a moderate income housing report to the division; or
1370          (ii) fails to cure the deficiencies in the specified county's moderate income housing
1371     report within 90 days after the day on which the division sent to the specified county a notice of
1372     noncompliance under Subsection (6).
1373          (b) The following apply to a specified county described in Subsection (7)(a) during the
1374     fiscal year immediately following the fiscal year in which the report is required:
1375          (i) the executive director of the Department of Transportation may not program funds
1376     from the Transportation Investment Fund of 2005, including the Transit Transportation
1377     Investment Fund, to a project that is located within the unincorporated areas of the specified
1378     county in accordance with Subsection 72-2-124(6); and
1379          (ii) the Governor's Office of Planning and Budget may not award a financial grant to
1380     the specified county under the COVID-19 Local Assistance Matching Grant Program in
1381     accordance with Subsection 63J-4-802(7).
1382          (c) Upon determining that a specified county is ineligible for funds under this
1383     Subsection (7), the division shall send a notice of ineligibility to the legislative body of the
1384     specified county, the Department of Transportation, and the Governor's Office of Planning and
1385     Budget.
1386          (d) The notice described in Subsection (7)(c) shall:
1387          (i) name the specified county that is ineligible for funds;
1388          (ii) describe the funds for which the specified county is ineligible to receive;
1389          (iii) specify the fiscal year during which the specified county is ineligible for funds;
1390     and
1391          (iv) state the basis for the division's determination that the specified county is ineligible

1392     for funds.
1393          [(4)] (8) In a civil action seeking enforcement or claiming a violation of this section or
1394     of Subsection 17-27a-404(5)(c), a plaintiff may not recover damages but may be awarded only
1395     injunctive or other equitable relief.
1396          Section 13. Section 17-27a-510.5 is amended to read:
1397          17-27a-510.5. Changes to dwellings -- Egress windows.
1398          (1) As used in this section:
1399          (a) "Internal accessory dwelling unit" means an accessory dwelling unit created:
1400          (i) within a primary dwelling;
1401          (ii) within the footprint of the primary dwelling described in Subsection (1)(a)(i) at the
1402     time the internal accessory dwelling unit is created; and
1403          (iii) for the purpose of offering a long-term rental of 30 consecutive days or longer.
1404          (b) "Primary dwelling" means a single-family dwelling that:
1405          (i) is detached; and
1406          (ii) is occupied as the primary residence of the owner of record.
1407          (c) "Rental dwelling" means the same as that term is defined in Section 10-8-85.5.
1408          (2) A county ordinance adopted under Section 10-1-203.5 may not:
1409          (a) require physical changes in a structure with a legal nonconforming rental dwelling
1410     use unless the change is for:
1411          (i) the reasonable installation of:
1412          (A) a smoke detector that is plugged in or battery operated;
1413          (B) a ground fault circuit interrupter protected outlet on existing wiring;
1414          (C) street addressing;
1415          (D) except as provided in Subsection (3), an egress bedroom window if the existing
1416     bedroom window is smaller than that required by current State Construction Code;
1417          (E) an electrical system or a plumbing system, if the existing system is not functioning
1418     or is unsafe as determined by an independent electrical or plumbing professional who is
1419     licensed in accordance with Title 58, Occupations and Professions;
1420          (F) hand or guard rails; or
1421          (G) occupancy separation doors as required by the International Residential Code; or
1422          (ii) the abatement of a structure; or

1423          (b) be enforced to terminate a legal nonconforming rental dwelling use.
1424          (3) (a) A county may not require physical changes to install an egress or emergency
1425     escape window in an existing bedroom that complied with the State Construction Code in
1426     effect at the time the bedroom was finished if:
1427          (i) the dwelling is an owner-occupied dwelling or a rental dwelling that is:
1428          (A) a detached one-, two-, three-, or four-family dwelling; or
1429          (B) a town home that is not more than three stories above grade with a separate means
1430     of egress; and
1431          (ii) (A) the window in the existing bedroom is smaller than that required by current
1432     State Construction Code; and
1433          (B) the change would compromise the structural integrity of the structure or could not
1434     be completed in accordance with current State Construction Code, including set-back and
1435     window well requirements.
1436          (b) Subject to Section 17-27a-526, Subsection (3)(a) [does not apply] applies only to an
1437     internal accessory dwelling unit constructed before October 1, 2021.
1438          (4) Nothing in this section prohibits a county from:
1439          (a) regulating the style of window that is required or allowed in a bedroom;
1440          (b) requiring that a window in an existing bedroom be fully openable if the openable
1441     area is less than required by current State Construction Code; or
1442          (c) requiring that an existing window not be reduced in size if the openable area is
1443     smaller than required by current State Construction Code.
1444          Section 14. Section 17-27a-526 is amended to read:
1445          17-27a-526. Internal accessory dwelling units.
1446          (1) As used in this section:
1447          (a) "Internal accessory dwelling unit" means an accessory dwelling unit created:
1448          (i) within a primary dwelling;
1449          (ii) within the footprint of the primary dwelling described in Subsection (1)(a)(i) at the
1450     time the internal accessory dwelling unit is created; and
1451          (iii) for the purpose of offering a long-term rental of 30 consecutive days or longer.
1452          (b) "Primary dwelling" means a single-family dwelling that:
1453          (i) is detached; and

1454          (ii) is occupied as the primary residence of the owner of record.
1455          (2) In any area zoned primarily for residential use:
1456          (a) the use of an internal accessory dwelling unit is a permitted use; and
1457          (b) except as provided in Subsections (3) and (4), a county may not establish any
1458     restrictions or requirements for the construction or use of one internal accessory dwelling unit
1459     within a primary dwelling, including a restriction or requirement governing:
1460          (i) the size of the internal accessory dwelling unit in relation to the primary dwelling;
1461          (ii) total lot size; or
1462          (iii) street frontage.
1463          (3) (a) This Subsection (3) applies only to an internal accessory dwelling unit created
1464     on or after October 1, 2021.
1465          [(3)] (b) An internal accessory dwelling unit shall comply with all applicable building,
1466     health, and fire codes.
1467          (c) A county shall require the owner of a primary dwelling to:
1468          (i) obtain a permit or license for renting an internal accessory dwelling unit; or
1469          (ii) obtain a building permit for constructing an internal accessory dwelling unit.
1470          [(4)] (d) A county may:
1471          [(a)] (i) prohibit the installation of a separate utility meter for an internal accessory
1472     dwelling unit;
1473          [(b)] (ii) require that an internal accessory dwelling unit be designed in a manner that
1474     does not change the appearance of the primary dwelling as a single-family dwelling;
1475          [(c)] (iii) require a primary dwelling:
1476          [(i)] (A) to include one additional on-site parking space for an internal accessory
1477     dwelling unit, regardless of whether the primary dwelling is existing or new construction; and
1478          [(ii)] (B) to replace any parking spaces contained within a garage or carport if an
1479     internal accessory dwelling unit is created within the garage or carport;
1480          [(d)] (iv) prohibit the creation of an internal accessory dwelling unit within a mobile
1481     home as defined in Section 57-16-3;
1482          [(e) require the owner of a primary dwelling to obtain a permit or license for renting an
1483     internal accessory dwelling unit;]
1484          [(f)] (v) prohibit the creation of an internal accessory dwelling unit within a zoning

1485     district covering an area that is equivalent to 25% or less of the total unincorporated area in the
1486     county that is zoned primarily for residential use;
1487          [(g)] (vi) prohibit the creation of an internal accessory dwelling unit if the primary
1488     dwelling is served by a failing septic tank;
1489          [(h)] (vii) prohibit the creation of an internal accessory dwelling unit if the lot
1490     containing the primary dwelling is 6,000 square feet or less in size;
1491          [(i)] (viii) prohibit the rental or offering the rental of an internal accessory dwelling
1492     unit for a period of less than 30 consecutive days;
1493          [(j)] (ix) prohibit the rental of an internal accessory dwelling unit if the internal
1494     accessory dwelling unit is located in a dwelling that is not occupied as the owner's primary
1495     residence;
1496          [(k)] (x) hold a lien against a property that contains an internal accessory dwelling unit
1497     in accordance with Subsection (5); and
1498          [(l)] (xi) record a notice for an internal accessory dwelling unit in accordance with
1499     Subsection (6).
1500          (4) (a) This Subsection (4) applies only to an internal accessory dwelling unit
1501     constructed before October 1, 2021.
1502          (b) A county shall require the owner of a primary dwelling to obtain a permit or license
1503     for renting an internal accessory dwelling unit.
1504          (c) In accordance with Section 17-27a-510.5, a county may require the owner of a
1505     primary dwelling to:
1506          (i) install a smoke detector within an internal accessory dwelling unit that is plugged in
1507     or battery operated; and
1508          (ii) by no later than May 4, 2025, install an egress bedroom window within an internal
1509     accessory dwelling unit if the existing bedroom window is smaller than that required by current
1510     State Construction Code.
1511          (5) (a) In addition to any other legal or equitable remedies available to a county, a
1512     county may hold a lien against a property that contains an internal accessory dwelling unit if:
1513          (i) the owner of the property violates any of the provisions of this section or any
1514     ordinance adopted under Subsection (3) or (4);
1515          (ii) the county provides a written notice of violation in accordance with Subsection

1516     (5)(b);
1517          (iii) the county holds a hearing and determines that the violation has occurred in
1518     accordance with Subsection (5)(d), if the owner files a written objection in accordance with
1519     Subsection (5)(b)(iv);
1520          (iv) the owner fails to cure the violation within the time period prescribed in the
1521     written notice of violation under Subsection (5)(b);
1522          (v) the county provides a written notice of lien in accordance with Subsection (5)(c);
1523     and
1524          (vi) the county records a copy of the written notice of lien described in Subsection
1525     (5)(a)(iv) with the county recorder of the county in which the property is located.
1526          (b) The written notice of violation shall:
1527          (i) describe the specific violation;
1528          (ii) provide the owner of the internal accessory dwelling unit a reasonable opportunity
1529     to cure the violation that is:
1530          (A) no less than 14 days after the day on which the county sends the written notice of
1531     violation, if the violation results from the owner renting or offering to rent the internal
1532     accessory dwelling unit for a period of less than 30 consecutive days; or
1533          (B) no less than 30 days after the day on which the county sends the written notice of
1534     violation, for any other violation; and
1535          (iii) state that if the owner of the property fails to cure the violation within the time
1536     period described in Subsection (5)(b)(ii), the county may hold a lien against the property in an
1537     amount of up to $100 for each day of violation after the day on which the opportunity to cure
1538     the violation expires;
1539          (iv) notify the owner of the property:
1540          (A) that the owner may file a written objection to the violation within 14 days after the
1541     day on which the written notice of violation is post-marked or posted on the property; and
1542          (B) of the name and address of the county office where the owner may file the written
1543     objection;
1544          (v) be mailed to:
1545          (A) the property's owner of record; and
1546          (B) any other individual designated to receive notice in the owner's license or permit

1547     records; and
1548          (vi) be posted on the property.
1549          (c) The written notice of lien shall:
1550          (i) comply with the requirements of Section 38-12-102;
1551          (ii) describe the specific violation;
1552          (iii) specify the lien amount, in an amount of up to $100 for each day of violation after
1553     the day on which the opportunity to cure the violation expires;
1554          (iv) be mailed to:
1555          (A) the property's owner of record; and
1556          (B) any other individual designated to receive notice in the owner's license or permit
1557     records; and
1558          (v) be posted on the property.
1559          (d) (i) If an owner of property files a written objection in accordance with Subsection
1560     (5)(b)(iv), the county shall:
1561          (A) hold a hearing in accordance with Title 52, Chapter 4, Open and Public Meetings
1562     Act, to conduct a review and determine whether the specific violation described in the written
1563     notice of violation under Subsection (5)(b) has occurred; and
1564          (B) notify the owner in writing of the date, time, and location of the hearing described
1565     in Subsection (5)(d)(i)(A) no less than 14 days before the day on which the hearing is held.
1566          (ii) If an owner of property files a written objection under Subsection (5)(b)(iv), a
1567     county may not record a lien under this Subsection (5) until the county holds a hearing and
1568     determines that the specific violation has occurred.
1569          (iii) If the county determines at the hearing that the specific violation has occurred, the
1570     county may impose a lien in an amount of up to $100 for each day of violation after the day on
1571     which the opportunity to cure the violation expires, regardless of whether the hearing is held
1572     after the day on which the opportunity to cure the violation has expired.
1573          (e) If an owner cures a violation within the time period prescribed in the written notice
1574     of violation under Subsection (5)(b), the county may not hold a lien against the property, or
1575     impose any penalty or fee on the owner, in relation to the specific violation described in the
1576     written notice of violation under Subsection (5)(b).
1577          (6) (a) A county that issues, on or after October 1, 2021, a permit or license to an

1578     owner of a primary dwelling to rent an internal accessory dwelling unit, or a building permit to
1579     an owner of a primary dwelling to create an internal accessory dwelling unit, may record a
1580     notice in the office of the recorder of the county in which the primary dwelling is located.
1581          (b) The notice described in Subsection (6)(a) shall include:
1582          (i) a description of the primary dwelling;
1583          (ii) a statement that the primary dwelling contains an internal accessory dwelling unit;
1584     and
1585          (iii) a statement that the internal accessory dwelling unit may only be used in
1586     accordance with the county's land use regulations.
1587          (c) The county shall, upon recording the notice described in Subsection (6)(a), deliver a
1588     copy of the notice to the owner of the internal accessory dwelling unit.
1589          Section 15. Section 35A-8-101 is amended to read:
1590          35A-8-101. Definitions.
1591          As used in this chapter:
1592          (1) "Accessible housing" means housing which has been constructed or modified to be
1593     accessible, as described in the State Construction Code or an approved code under Title 15A,
1594     State Construction and Fire Codes Act.
1595          (2) "Director" means the director of the division.
1596          (3) "Division" means the Housing and Community Development Division.
1597          (4) "Moderate income housing" means housing occupied or reserved for occupancy by
1598     households with a gross household income equal to or less than 80% of the median gross
1599     income for households of the same size in the county in which the housing is located.
1600          (5) "Moderate income housing unit" means a housing unit that qualifies as moderate
1601     income housing.
1602          Section 16. Section 35A-8-503 is amended to read:
1603          35A-8-503. Housing loan fund board -- Duties -- Expenses.
1604          (1) There is created the Olene Walker Housing Loan Fund Board.
1605          (2) The board is composed of [11] 13 voting members.
1606          (a) The governor shall appoint the following members to four-year terms:
1607          (i) two members from local governments[;], of which:
1608          (A) one member shall be a locally elected official who resides in a county of the first or

1609     second class; and
1610          (B) one member shall be a locally elected official who resides in a county of the third,
1611     fourth, fifth, or sixth class;
1612          (ii) two members from the mortgage lending community[;], of which:
1613          (A) one member shall have expertise in single-family mortgage lending; and
1614          (B) one member shall have expertise in multi-family mortgage lending;
1615          (iii) one member from real estate sales interests;
1616          (iv) [one member] two members from home builders interests[;], of which:
1617          (A) one member shall have expertise in single-family residential construction; and
1618          (B) one member shall have expertise in multi-family residential construction;
1619          (v) one member from rental housing interests;
1620          (vi) [one member] two members from housing advocacy interests[;], of which:
1621          (A) one member who resides within any area in a county of the first or second class;
1622     and
1623          (B) one member who resides within any area in a county of the third, fourth, fifth, or
1624     sixth class;
1625          (vii) one member of the manufactured housing interest;
1626          (viii) one member with expertise in transit-oriented developments; and
1627          (ix) one member who represents rural interests.
1628          (b) The director or the director's designee serves as the secretary of the board.
1629          (c) The members of the board shall annually elect a chair from among the voting
1630     membership of the board.
1631          (3) (a) Notwithstanding the requirements of Subsection (2), the governor shall, at the
1632     time of appointment or reappointment, adjust the length of terms to ensure that the terms of
1633     board members are staggered so that approximately half of the board is appointed every two
1634     years.
1635          (b) When a vacancy occurs in the membership for any reason, the replacement is
1636     appointed for the unexpired term.
1637          (4) (a) The board shall:
1638          (i) meet regularly, at least quarterly to conduct business of the board, on dates fixed by
1639     the board;

1640          (ii) meet twice per year, with at least one of the meetings in a rural area of the state, to
1641     provide information to and receive input from the public regarding the state's housing policies
1642     and needs;
1643          (iii) keep minutes of its meetings; and
1644          (iv) comply with the procedures and requirements of Title 52, Chapter 4, Open and
1645     Public Meetings Act.
1646          (b) [Six] Seven members of the board constitute a quorum, and the governor, the chair,
1647     or a majority of the board may call a meeting of the board.
1648          (5) The board shall:
1649          (a) review the housing needs in the state;
1650          (b) determine the relevant operational aspects of any grant, loan, or revenue collection
1651     program established under the authority of this chapter;
1652          (c) determine the means to implement the policies and goals of this chapter;
1653          (d) select specific projects to receive grant or loan money; and
1654          (e) determine how fund money shall be allocated and distributed.
1655          (6) A member may not receive compensation or benefits for the member's service, but
1656     may receive per diem and travel expenses in accordance with:
1657          (a) Section 63A-3-106;
1658          (b) Section 63A-3-107; and
1659          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
1660     63A-3-107.
1661          Section 17. Section 35A-8-504 is amended to read:
1662          35A-8-504. Distribution of fund money.
1663          (1) As used in this section:
1664          (a) "Community" means the same as that term is defined in Section 17C-1-102.
1665          (b) "Income targeted housing" means the same as that term is defined in Section
1666     17C-1-102.
1667          [(1)] (2) The executive director shall:
1668          (a) make grants and loans from the fund for any of the activities authorized by Section
1669     35A-8-505, as directed by the board;
1670          (b) establish the criteria with the approval of the board by which loans and grants will

1671     be made; and
1672          (c) determine with the approval of the board the order in which projects will be funded.
1673          [(2)] (3) The executive director shall distribute, as directed by the board, any federal
1674     money contained in the fund according to the procedures, conditions, and restrictions placed
1675     upon the use of the money by the federal government.
1676          [(3) (a)] (4) The executive director shall distribute, as directed by the board, any funds
1677     received under Section 17C-1-412 to pay the costs of providing income targeted housing within
1678     the community that created the community reinvestment agency under Title 17C, Limited
1679     Purpose Local Government Entities - Community Reinvestment Agency Act.
1680          [(b) As used in Subsection (3)(a):]
1681          [(i) "Community" means the same as that term is defined in Section 17C-1-102.]
1682          [(ii) "Income targeted housing" means the same as that term is defined in Section
1683     17C-1-102.]
1684          [(4)] (5) Except for federal money, money received under Section 17C-1-412, and
1685     money appropriated for use in accordance with Section 35A-8-2105, the executive director
1686     shall distribute, as directed by the board, money in the fund according to the following
1687     requirements:
1688          [(a) the executive director shall distribute at least 30% of the money in the fund to rural
1689     areas of the state;]
1690          [(b)] (a) the executive director shall distribute at least 70% of the money in the fund to
1691     benefit persons whose annual income is at or below 50% of the median family income for the
1692     state;
1693          [(c)] (b) the executive director may [not use more than] use up to 3% of the revenues of
1694     the fund, including any appropriation to the fund to offset department or board administrative
1695     expenses;
1696          [(d)] (c) the executive director shall distribute any remaining money in the fund to
1697     benefit persons whose annual income is at or below 80% of the median family income for the
1698     state; and
1699          [(e)] (d) if the executive director or the executive director's designee makes a loan in
1700     accordance with this section, the interest rate of the loan shall be based on the borrower's
1701     ability to pay.

1702          [(5)] (6) The executive director may, with the approval of the board:
1703          (a) enact rules to establish procedures for the grant and loan process by following the
1704     procedures and requirements of Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
1705     and
1706          (b) service or contract, under Title 63G, Chapter 6a, Utah Procurement Code, for the
1707     servicing of loans made by the fund.
1708          Section 18. Section 35A-8-507.5 is amended to read:
1709          35A-8-507.5. Predevelopment grants.
1710          [(1) The executive director under the direction of the board may:]
1711          [(a) award one or more predevelopment grants to nonprofit or for-profit entities in
1712     preparation for the construction of low-income housing units;]
1713          [(b) award a predevelopment grant in an amount of no more than $50,000 per project;]
1714          [(c) may only award a predevelopment grant in relation to a project in:]
1715          [(i) a city of the fifth or sixth class, or a town, in a rural area of the state; or]
1716          [(ii) any municipality or unincorporated area in a county of the fourth, fifth, or sixth
1717     class.]
1718          (1) The executive director may, under the direction of the board, award one or more
1719     predevelopment grants to a nonprofit or for-profit entity:
1720          (a) in preparation for a project that:
1721          (i) involves the construction of moderate income housing units; and
1722          (ii) is located within:
1723          (A) a city of the fifth or sixth class, or a town, in a rural area of the state; or
1724          (B) any municipality or unincorporated area in a county of the fourth, fifth, or sixth
1725     class; and
1726          (b) in an amount of no more than $50,000 per project.
1727          (2) The executive director shall, under the direction of the board [shall], award each
1728     predevelopment grant in accordance with the provisions of this section and the provisions
1729     related to grant applications, grant awards, and reporting requirements in this part.
1730          (3) [A] The recipient of a predevelopment grant:
1731          (a) may [be used by a recipient for offsetting] use grant funds to offset the
1732     predevelopment funds needed to prepare for the construction of low-income housing units,

1733     including market studies, surveys, environmental and impact studies, technical assistance, and
1734     preliminary architecture, engineering, or legal work; and
1735          (b) may not [be used by a recipient] use grant funds to pay for staff salaries [of a grant
1736     recipient] or construction costs.
1737          (4) The executive director shall, under the direction of the board [shall], prioritize the
1738     awarding of a predevelopment grant for a project [in] that is located within:
1739          (a) a county of the fifth or sixth class [and where the municipality or unincorporated];
1740     and
1741          (b) an area that has underdeveloped infrastructure, as demonstrated by at least two of
1742     the following:
1743          [(a)] (i) limited or no availability of natural gas;
1744          [(b)] (ii) limited or no availability of a sewer system;
1745          [(c)] (iii) limited or no availability of broadband Internet;
1746          [(d)] (iv) unpaved residential streets; or
1747          [(e)] (v) limited local construction professionals, vendors, or services.
1748          Section 19. Section 35A-8-508 is amended to read:
1749          35A-8-508. Annual accounting.
1750          (1) The executive director shall monitor the activities of recipients of grants and loans
1751     issued under this part on a yearly basis to ensure compliance with the terms and conditions
1752     imposed on the recipient by the executive director with the approval of the board or by this
1753     part.
1754          (2) [An] Beginning July 1, 2021, an entity that receives [a grant or loan] any money
1755     from the fund under this part shall provide the executive director with an annual accounting of
1756     how the money the entity received from the fund has been spent.
1757          (3) The executive director shall make an annual report to the board accounting for the
1758     expenditures authorized by the board.
1759          (4) The board shall submit a report to the department for inclusion in the annual
1760     written report described in Section 35A-1-109:
1761          (a) accounting for expenditures authorized by the board; and
1762          (b) evaluating the effectiveness of the program.
1763          Section 20. Section 35A-8-509 is amended to read:

1764          35A-8-509. Economic Revitalization and Investment Fund.
1765          (1) There is created an enterprise fund known as the "Economic Revitalization and
1766     Investment Fund."
1767          (2) The Economic Revitalization and Investment Fund consists of money from the
1768     following:
1769          (a) money appropriated to the account by the Legislature;
1770          (b) private contributions;
1771          (c) donations or grants from public or private entities; and
1772          (d) money returned to the department under [Section 35A-8-512] Subsection
1773     35A-8-512(3)(a).
1774          (3) The Economic Revitalization and Investment Fund shall earn interest, which shall
1775     be deposited into the Economic Revitalization and Investment Fund.
1776          (4) The executive director may distribute money from the Economic Revitalization and
1777     Investment Fund to one or more projects that:
1778          (a) include affordable housing units for households[: (i)] whose income is no more
1779     than 30% of the area median income for households of the same size in the county or
1780     municipality where the project is located; and
1781          [(ii) at rental rates no greater than the rates described in Subsection 35A-8-511(2)(b);
1782     and]
1783          (b) have been approved by the board in accordance with Section 35A-8-510.
1784          (5) (a) A housing sponsor may apply to the department to receive a distribution in
1785     accordance with Subsection (4).
1786          (b) The application shall include:
1787          (i) the location of the project;
1788          (ii) the number, size, and tenant income requirements of affordable housing units
1789     described in Subsection (4)(a) that will be included in the project; and
1790          (iii) a written commitment to enter into a deed restriction that reserves for a period of
1791     30 years the affordable housing units described in Subsection (5)(b)(ii) or their equivalent for
1792     occupancy by households that meet the income requirements described in Subsection (5)(b)(ii).
1793          (c) The commitment in Subsection (5)(b)(iii) shall be considered met if a housing unit
1794     is:

1795          (i) (A) occupied or reserved for occupancy by a household whose income is no more
1796     than 30% of the area median income for households of the same size in the county or
1797     municipality where the project is located; or
1798          (B) occupied by a household whose income is no more than 60% of the area median
1799     income for households of the same size in the county or municipality where the project is
1800     located if that household met the income requirement described in Subsection (4)(a) when the
1801     household originally entered into the lease agreement for the housing unit; and
1802          (ii) rented at a rate no greater than the rate described in Subsection 35A-8-511(2)(b).
1803          (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1804     department may make additional rules providing procedures for a person to apply to the
1805     department to receive a distribution described in Subsection (4).
1806          (6) The executive director may expend up to 3% of the revenues of the Economic
1807     Revitalization and Investment Fund, including any appropriation to the Economic
1808     Revitalization and Investment Fund, to offset department or board administrative expenses.
1809          Section 21. Section 35A-8-509.5 is enacted to read:
1810          35A-8-509.5. Rural Housing Fund.
1811          (1) There is created an enterprise fund known as the "Rural Housing Fund."
1812          (2) The Rural Housing Fund consists of money from the following:
1813          (a) money appropriated to the account by the Legislature;
1814          (b) private contributions;
1815          (c) donations or grants from public or private entities; and
1816          (d) money returned to the department under Subsection 35A-8-512(3)(b).
1817          (3) The Rural Housing Fund shall earn interest, which shall be deposited into the Rural
1818     Housing Fund.
1819          (4) Subject to appropriation, the executive director may expend funds in the Rural
1820     Housing Fund to provide loans for projects that:
1821          (a) are located within:
1822          (i) a county of the third, fourth, fifth, or sixth class; or
1823          (ii) a municipality in a county of the second class with a population of 10,000 or less;
1824          (b) include moderate income housing units; and
1825          (c) have been approved by the board in accordance with Section 35A-8-510.

1826          (5) (a) A housing sponsor may apply to the department to receive a loan under this
1827     section.
1828          (b) An application under Subsection (5)(a) shall specify:
1829          (i) the location of the project;
1830          (ii) the number, size, and income requirements of moderate income housing units that
1831     will be included in the project; and
1832          (iii) a written commitment to enter into a deed restriction that reserves for a period of
1833     50 years the moderate income housing units described in Subsection (5)(b)(ii).
1834          (c) A commitment under Subsection (5)(b)(iii) shall be considered satisfied if a
1835     housing unit is occupied by a household that met the income requirement for moderate income
1836     housing when the household originally entered into the lease agreement for the housing unit.
1837          (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1838     department may make rules establishing procedures and requirements for housing sponsors to
1839     apply for and receive loans under this section.
1840          (6) The executive director may expend up to 3% of the revenues of the Rural Housing
1841     Fund, including any appropriation to the Rural Housing Fund, to offset department or board
1842     administrative expenses.
1843          Section 22. Section 35A-8-510 is amended to read:
1844          35A-8-510. Housing loan fund board approval.
1845          (1) The board shall review the project applications described in [Subsection]
1846     Subsections 35A-8-509(5) and 35A-8-509.5(5).
1847          (2) (a) The board may approve a project that meets the requirements of Subsections
1848     35A-8-509(4) and (5) to receive funds from the Economic Revitalization and Investment Fund.
1849          (b) The board may approve a project that meets the requirements of Subsections
1850     35A-8-509.5(4) and (5) to receive funds from the Rural Housing Fund.
1851          (3) The board shall give preference to projects:
1852          (a) that include significant additional or matching funds from an individual, private
1853     organization, or local government entity;
1854          (b) that include significant contributions by the applicant to total project costs,
1855     including contributions secured by the applicant from other sources such as professional, craft,
1856     and trade services and lender interest rate subsidies;

1857          (c) with significant local government contributions in the form of infrastructure,
1858     improvements, or other assistance;
1859          (d) where the applicant has demonstrated the ability, stability, and resources to
1860     complete the project;
1861          (e) that will serve the greatest need;
1862          (f) that promote economic development benefits;
1863          (g) that allow integration into a local government housing plan;
1864          (h) that would mitigate or correct existing health, safety, or welfare concerns; or
1865          (i) that remedy a gap in the supply of and demand for affordable housing.
1866          Section 23. Section 35A-8-511 is amended to read:
1867          35A-8-511. Activities authorized to receive account money.
1868          [(1)] The executive director may distribute funds from the Economic Revitalization
1869     and Investment Fund and the Rural Housing Fund for any of the following activities
1870     undertaken as part of an approved project:
1871          [(a)] (1) the acquisition, rehabilitation, or new construction of a building that includes
1872     [affordable] moderate income housing units;
1873          [(b)] (2) the purchase of land for the construction of a building that will include
1874     [affordable] moderate income housing units; or
1875          [(c)] (3) pre-development work, including planning, studies, design, and site work for a
1876     building that will include [affordable] moderate income housing units.
1877          [(2) The maximum amount of money that may be distributed from the Economic
1878     Revitalization and Investment Fund for each affordable housing unit that has been committed
1879     in accordance with Subsection 35A-8-509(5)(b)(iii) is the present value, based on the current
1880     market interest rate as determined by the board for a multi-family mortgage loan in the county
1881     or metropolitan area where the project is located, of 360 monthly payments equal to the
1882     difference between:]
1883          [(a) the most recent United States Department of Housing and Urban Development fair
1884     market rent for a unit of the same size in the county or metropolitan area where the project is
1885     located; and]
1886          [(b) an affordable rent equal to 30% of the income requirement described in Subsection
1887     35A-8-509(5)(b)(ii) for a household of:]

1888          [(i) one person if the unit is an efficiency unit;]
1889          [(ii) two people if the unit is a one-bedroom unit;]
1890          [(iii) four people if the unit is a two-bedroom unit;]
1891          [(iv) five people if the unit is a three-bedroom unit;]
1892          [(v) six people if the unit is a four-bedroom unit; or]
1893          [(vi) eight people if the unit is a five-bedroom or larger unit.]
1894          Section 24. Section 35A-8-512 is amended to read:
1895          35A-8-512. Repayment of funds.
1896          (1) Upon the earlier of 30 years from the date an approved project is placed in service
1897     or the sale or transfer of the affordable housing units acquired, constructed, or rehabilitated as
1898     part of an approved project funded under [Section 35A-8-511] Subsection 35A-8-511(1), the
1899     housing sponsor shall remit to the department:
1900          (a) the total amount of money distributed by the department to the housing sponsor for
1901     the project; and
1902          (b) an additional amount of money determined by contract with the department prior to
1903     the initial disbursement of money [from the Economic Revitalization and Investment Fund].
1904          (2) Any claim arising under Subsection (1) is a lien against the real property funded
1905     under this chapter.
1906          (3) (a) Any money returned to the department under Subsection (1) from a housing
1907     sponsor that received funds from the Economic Revitalization and Investment Fund shall be
1908     deposited in the Economic Revitalization and Investment Fund.
1909          (b) Any money returned to the department under Subsection (1) from a housing
1910     sponsor that received funds from the Rural Housing Fund shall be deposited in the Rural
1911     Housing Fund.
1912          Section 25. Section 35A-8-513 is amended to read:
1913          35A-8-513. Annual accounting.
1914          (1) The executive director shall monitor the activities of recipients of funds from the
1915     Economic Revitalization and Investment Fund and the Rural Housing Fund on a yearly basis to
1916     ensure compliance with the terms and conditions imposed on the recipient by the executive
1917     director with the approval of the board.
1918          (2) (a) A housing sponsor that receives funds from the Economic Revitalization and

1919     Investment Fund shall provide the executive director with an annual accounting of how the
1920     money the entity received from the Economic Revitalization and Investment Fund has been
1921     spent and evidence that the commitment described in Subsection 35A-8-509(5) has been met.
1922          (b) A housing sponsor that receives funds from the Rural Housing Fund shall provide
1923     the executive director with an annual accounting of how the money the entity received from the
1924     Rural Housing Fund has been spent and evidence that the commitment described in Subsection
1925     35A-8-509.5(5) has been met.
1926          (3) The executive director shall make an annual report to the board accounting for the
1927     expenditures authorized by the board under the Economic Revitalization and Investment Fund
1928     and the Rural Housing Fund.
1929          (4) The board shall submit a report to the department for inclusion in the annual
1930     written report described in Section 35A-1-109 that includes:
1931          (a) an accounting for expenditures authorized by the board; and
1932          (b) an evaluation of the effectiveness of [the] each program.
1933          Section 26. Section 35A-8-803 is amended to read:
1934          35A-8-803. Division -- Functions.
1935          (1) In addition to any other functions the governor or Legislature may assign:
1936          (a) the division shall:
1937          (i) provide a clearinghouse of information for federal, state, and local housing
1938     assistance programs;
1939          (ii) establish, in cooperation with political subdivisions, model plans and management
1940     methods to encourage or provide for the development of affordable housing that may be
1941     adopted by political subdivisions by reference;
1942          (iii) undertake, in cooperation with political subdivisions, a realistic assessment of
1943     problems relating to housing needs, such as:
1944          (A) inadequate supply of dwellings;
1945          (B) substandard dwellings; and
1946          (C) inability of medium and low income families to obtain adequate housing;
1947          (iv) provide the information obtained under Subsection (1)(a)(iii) to:
1948          (A) political subdivisions;
1949          (B) real estate developers;

1950          (C) builders;
1951          (D) lending institutions;
1952          (E) affordable housing advocates; and
1953          (F) others having use for the information;
1954          (v) advise political subdivisions of serious housing problems existing within their
1955     jurisdiction that require concerted public action for solution;
1956          (vi) assist political subdivisions in defining housing objectives and in preparing for
1957     adoption a plan of action covering a five-year period designed to accomplish housing
1958     objectives within their jurisdiction; [and]
1959          (vii) for municipalities or counties required to submit an annual moderate income
1960     housing report to the department as described in Section 10-9a-408 or 17-27a-408:
1961          (A) assist in the creation of the reports; and
1962          [(B) evaluate the reports for the purposes of Subsections 72-2-124(5) and (6); and]
1963          (B) review the reports to meet the requirements of Sections 10-9a-408 and 17-27a-408;
1964          (viii) establish and maintain a database of moderate income housing units located
1965     within the state; and
1966          (ix) on or before December 1, 2022, develop and submit to the Commission on
1967     Housing Affordability a methodology for determining whether a municipality or county is
1968     taking sufficient measures to protect and promote moderate income housing in accordance with
1969     the provisions of Sections 10-9a-403 and 17-27a-403; and
1970          (b) within legislative appropriations, the division may accept for and on behalf of, and
1971     bind the state to, any federal housing or homeless program in which the state is invited,
1972     permitted, or authorized to participate in the distribution, disbursement, or administration of
1973     any funds or service advanced, offered, or contributed in whole or in part by the federal
1974     government.
1975          (2) The administration of any federal housing program in which the state is invited,
1976     permitted, or authorized to participate in distribution, disbursement, or administration of funds
1977     or services, except those administered by the Utah Housing Corporation, is governed by
1978     Sections 35A-8-501 through 35A-8-508.
1979          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1980     department shall make rules describing the [evaluation] review process for moderate income

1981     housing reports described in Subsection (1)(a)(vii).
1982          Section 27. Section 35A-8-2105 is amended to read:
1983          35A-8-2105. Allocation of volume cap.
1984          (1) (a) Subject to Subsection (1)(b), the volume cap for each year shall be distributed
1985     by the board of review to the allotment accounts as described in Section 35A-8-2106.
1986          (b) The board of review may distribute up to 50% of each increase in the volume cap
1987     for use in development that occurs in quality growth areas, depending upon the board's analysis
1988     of the relative need for additional volume cap between development in quality growth areas
1989     and the allotment accounts under Section 35A-8-2106.
1990          (2) To obtain an allocation of the volume cap, issuing authorities shall submit to the
1991     board of review an application containing information required by the procedures and
1992     processes of the board of review.
1993          (3) (a) The board of review shall establish criteria for making allocations of volume
1994     cap that are consistent with the purposes of the code and this part.
1995          (b) In making an allocation of volume cap the board of review shall consider the
1996     following:
1997          (i) the principal amount of the bonds proposed to be issued;
1998          (ii) the nature and the location of the project or the type of program;
1999          (iii) the likelihood that the bonds will be sold and the timeframe of bond issuance;
2000          (iv) whether the project or program could obtain adequate financing without an
2001     allocation of volume cap;
2002          (v) the degree to which an allocation of volume cap is required for the project or
2003     program to proceed or continue;
2004          (vi) the social, health, economic, and educational effects of the project or program on
2005     the local community and state as a whole;
2006          (vii) the anticipated economic development created or retained within the local
2007     community and the state as a whole;
2008          (viii) the anticipated number of jobs, both temporary and permanent, created or
2009     retained within the local community and the state as a whole;
2010          (ix) if the project is a residential rental project, the degree to which the residential
2011     rental project:

2012          (A) targets lower income populations; and
2013          (B) is accessible housing; and
2014          (x) whether the project meets the principles of quality growth recommended by the
2015     Quality Growth Commission created in Section 11-38-201.
2016          (4) The board of review shall provide evidence of an allocation of volume cap by
2017     issuing a certificate in accordance with Section 35A-8-2107.
2018          (5) (a) [From] Subject to Subsection (5)(c), from January 1 to June 30 of each year, the
2019     board of review shall set aside at least 50% of the Small Issue Bond Account that may only be
2020     allocated to manufacturing projects.
2021          (b) [From] Subject to Subsection (5)(c), from July 1 to August 15 of each year, the
2022     board of review shall set aside at least 50% of the Pool Account that may only be allocated to
2023     manufacturing projects.
2024          (c) The board of review is not required to set aside any unused volume cap under
2025     Subsection 35A-8-2106(2)(c) to satisfy the requirements of Subsection (5)(a) or (b).
2026          Section 28. Section 35A-8-2106 is amended to read:
2027          35A-8-2106. Allotment accounts.
2028          (1) There are created the following allotment accounts:
2029          (a) the Single Family Housing Account, for which eligible issuing authorities are those
2030     authorized under the code and state statute to issue qualified mortgage bonds under Section 143
2031     of the code;
2032          (b) the Student Loan Account, for which eligible issuing authorities are those
2033     authorized under the code and state statute to issue qualified student loan bonds under Section
2034     144(b) of the code;
2035          (c) the Small Issue Bond Account, for which eligible issuing authorities are those
2036     authorized under the code and state statute to issue:
2037          (i) qualified small issue bonds under Section 144(a) of the code;
2038          (ii) qualified exempt facility bonds for qualified residential rental projects under
2039     Section 142(d) of the code; or
2040          (iii) qualified redevelopment bonds under Section 144(c) of the code;
2041          (d) the Exempt Facilities Account, for which eligible issuing authorities are those
2042     authorized under the code and state statute to issue any bonds requiring an allocation of volume

2043     cap other than for purposes described in [Subsections] Subsection (1)(a), (b), or (c);
2044          (e) the Pool Account, for which eligible issuing authorities are those authorized under
2045     the code and state statute to issue any bonds requiring an allocation of volume cap; and
2046          (f) the Carryforward Account, for which eligible issuing authorities are those with
2047     projects or programs qualifying under Section 146(f) of the code.
2048          (2) (a) The volume cap shall be distributed to the allotment accounts on January 1 of
2049     each year on the following basis:
2050          (i) 42% to the Single Family Housing Account;
2051          (ii) 33% to the Student Loan Account;
2052          (iii) 1% to the Exempt Facilities Account; and
2053          (iv) 24% to the Small Issue Bond Account.
2054          (b) From July 1 to September 30 of each year, the board of review may transfer any
2055     unallocated volume cap from the Exempt Facilities Account or the Small Issue Bond Account
2056     to the Pool Account.
2057          (c) Upon written notification by the issuing authorities eligible for volume cap
2058     allocation from the Single Family Housing Account or the Student Loan Account that all or a
2059     portion of volume cap distributed into that allotment account will not be used, the board of
2060     review may transfer the unused volume cap [between the Single Family Housing Account and
2061     the Student Loan Account] to any other allotment account.
2062          (d) From October 1 to the third Friday of December of each year, the board of review
2063     shall transfer all unallocated volume cap into the Pool Account.
2064          (e) On the third Saturday of December of each year, the board of review shall transfer
2065     uncollected volume cap, or allocated volume cap for which bonds have not been issued prior to
2066     the third Saturday of December, into the Carryforward Account.
2067          (f) If the authority to issue bonds designated in any allotment account is rescinded by
2068     amendment to the code, the board of review may transfer any unallocated volume cap from that
2069     allotment account to any other allotment account.
2070          Section 29. Section 35A-8-2203 is amended to read:
2071          35A-8-2203. Duties of the commission.
2072          (1) The commission's duties include:
2073          (a) increasing public and government awareness and understanding of the housing

2074     affordability needs of the state and how those needs may be most effectively and efficiently
2075     met, through empirical study and investigation;
2076          (b) identifying and recommending implementation of specific strategies, policies,
2077     procedures, and programs to address the housing affordability needs of the state;
2078          (c) facilitating the communication and coordination of public and private entities that
2079     are involved in developing, financing, providing, advocating for, and administering affordable
2080     housing in the state;
2081          (d) studying, evaluating, and reporting on the status and effectiveness of policies,
2082     procedures, and programs that address housing affordability in the state;
2083          (e) studying and evaluating the policies, procedures, and programs implemented by
2084     other states that address housing affordability;
2085          (f) providing a forum for public comment on issues related to housing affordability;
2086     [and]
2087          (g) providing recommendations to the governor and Legislature on strategies, policies,
2088     procedures, and programs to address the housing affordability needs of the state[.]; and
2089          (h) on or before December 31, 2022, approving the methodology developed by the
2090     division under Subsection 35A-8-803(1)(a)(ix).
2091          (2) To accomplish its duties, the commission may:
2092          (a) request and receive from a state or local government agency or institution summary
2093     information relating to housing affordability, including:
2094          (i) reports;
2095          (ii) audits;
2096          (iii) projections; and
2097          (iv) statistics; and
2098          (b) appoint one or more advisory groups to advise and assist the commission.
2099          (3) (a) A member of an advisory group described in Subsection (2)(b):
2100          (i) shall be appointed by the commission;
2101          (ii) may be:
2102          (A) a member of the commission; or
2103          (B) an individual from the private or public sector; and
2104          (iii) notwithstanding Section 35A-8-2202, may not receive reimbursement or pay for

2105     any work done in relation to the advisory group.
2106          (b) An advisory group described in Subsection (2)(b) shall report to the commission on
2107     the progress of the advisory group.
2108          Section 30. Section 63J-4-802 is amended to read:
2109          63J-4-802. Creation of COVID-19 Local Assistance Matching Grant Program --
2110     Eligibility -- Duties of the office.
2111          (1) There is established a grant program known as COVID-19 Local Assistance
2112     Matching Grant Program that is administered by the office.
2113          (2) The office shall award financial grants to local governments that meet the
2114     qualifications described in Subsection (3) to provide support for:
2115          (a) projects or services that address the economic impacts of the COVID-19 emergency
2116     on housing insecurity, lack of affordable housing, or homelessness;
2117          (b) costs incurred in addressing public health challenges resulting from the COVID-19
2118     emergency;
2119          (c) necessary investments in water and sewer infrastructure; or
2120          (d) any other purpose authorized under the American Rescue Plan Act.
2121          (3) To be eligible for a grant under this part, a local government shall:
2122          (a) provide matching funds in an amount determined by the office; and
2123          (b) certify that the local government will spend grant funds:
2124          (i) on a purpose described in Subsection (2);
2125          (ii) within the time period determined by the office; and
2126          (iii) in accordance with the American Rescue Plan Act.
2127          (4) As soon as is practicable, but on or before September 15, 2021, the office shall,
2128     with recommendations from the review committee, establish:
2129          (a) procedures for applying for and awarding grants under this part, using an online
2130     grants management system that:
2131          (i) manages each grant throughout the duration of the grant;
2132          (ii) allows for:
2133          (A) online submission of grant applications; and
2134          (B) auditing and reporting for a local government that receives grant funds; and
2135          (iii) generates reports containing information about each grant;

2136          (b) criteria for awarding grants; and
2137          (c) reporting requirements for grant recipients.
2138          (5) Subject to appropriation, the office shall award grant funds on a competitive basis
2139     until December 31, 2024.
2140          (6) If the office receives a notice of prioritization for a municipality as described in
2141     Subsection 10-9a-408(5), or a notice of prioritization for a county as described in Subsection
2142     17-27a-408(5), the office may prioritize the awarding of a financial grant under this section to
2143     the municipality or county during the fiscal year specified in the notice.
2144          (7) If the office receives a notice of ineligibility for a municipality as described in
2145     Subsection 10-9a-408(7), or a notice of ineligibility for a county as described in Subsection
2146     17-27a-408(7), the office may not award a financial grant under this section to the municipality
2147     or county during the fiscal year specified in the notice.
2148          [(6)] (8) Before November 30 of each year, ending November 30, 2025, the office shall
2149     submit a report to the Executive Appropriations Committee that includes:
2150          (a) a summary of the procedures, criteria, and requirements established under
2151     Subsection (4);
2152          (b) a summary of the recommendations of the review committee under Section
2153     63J-4-803;
2154          (c) the number of applications submitted under the grant program during the previous
2155     year;
2156          (d) the number of grants awarded under the grant program during the previous year;
2157          (e) the aggregate amount of grant funds awarded under the grant program during the
2158     previous year; and
2159          (f) any other information the office considers relevant to evaluating the success of the
2160     grant program.
2161          [(7)] (9) The office may use funds appropriated by the Legislature for the grant
2162     program to pay for administrative costs.
2163          Section 31. Section 63L-12-101 is enacted to read:
2164     
CHAPTER 12. GRANTING OF REAL PROPERTY FOR MODERATE INCOME

2165     
HOUSING

2166          63L-12-101. Definitions.

2167          As used in this chapter:
2168          (1) "Governmental entity" means:
2169          (a) an agency, as that term is defined in Section 63G-10-102;
2170          (b) the School and Institutional Trust Lands Administration created in Section
2171     53C-1-201;
2172          (c) the School and Institutional Trust Lands Board of Trustees created in Section
2173     53C-1-202; or
2174          (d) a political subdivision, as that term is defined in Section 63L-11-102.
2175          (2) "Moderate income housing" means housing occupied or reserved for occupancy by
2176     households with a gross household income equal to or less than 80% of the median gross
2177     income for households of the same size in the county in which the housing is located.
2178          (3) "Municipality" means the same as that term is defined in Section 10-1-104.
2179          Section 32. Section 63L-12-102, which is renumbered from Section 10-8-501 is
2180     renumbered and amended to read:
2181          [10-8-501].      63L-12-102. Grant of real property for moderate income housing.
2182          [(1) As used in this part, "affordable housing unit" means a rental housing unit where a
2183     household whose income is no more than 50% of the area median income for households
2184     where the housing unit is located is able to occupy the housing unit paying no more than 31%
2185     of the household's income for gross housing costs including utilities.]
2186          [(2)] (1) Subject to the requirements of this section, [and for a municipality, Subsection
2187     10-8-2(4), a political subdivision] a governmental entity may grant real property owned by the
2188     [political subdivision] governmental entity to an entity for the development of [one or more
2189     affordable housing units on the real property that will serve households at various income
2190     levels whereby at least 20% of the housing units are affordable housing units] moderate income
2191     housing on the real property.
2192          [(3) A political subdivision]
2193          (2) A governmental entity shall ensure that real property granted [as described in]
2194     under Subsection [(2)] (1) is deed restricted for [affordable] moderate income housing for at
2195     least 30 years after the day on which each [affordable] moderate income housing unit is
2196     completed and occupied.
2197          [(4)] (3) If applicable, a [political subdivision] governmental entity granting real

2198     property under this section shall comply with:
2199          (a) the provisions of Title 78B, Chapter 6, Part 5, Eminent Domain[.];
2200          (b) Subsection 10-8-2(4), if a municipality is granting real property under this section;
2201          (c) Subsection 17-50-312(5), if a county is granting real property under this section;
2202     and
2203          (d) except as provided in Subsection (4), any other applicable provisions of law that
2204     govern the granting of real property by the governmental entity.
2205          [(5)] (4) A municipality granting real property under this section is not subject to the
2206     provisions of Subsection 10-8-2(3).
2207          Section 33. Section 72-2-124 is amended to read:
2208          72-2-124. Transportation Investment Fund of 2005.
2209          (1) There is created a capital projects fund entitled the Transportation Investment Fund
2210     of 2005.
2211          (2) The fund consists of money generated from the following sources:
2212          (a) any voluntary contributions received for the maintenance, construction,
2213     reconstruction, or renovation of state and federal highways;
2214          (b) appropriations made to the fund by the Legislature;
2215          (c) registration fees designated under Section 41-1a-1201;
2216          (d) the sales and use tax revenues deposited into the fund in accordance with Section
2217     59-12-103; and
2218          (e) revenues transferred to the fund in accordance with Section 72-2-106.
2219          (3) (a) The fund shall earn interest.
2220          (b) All interest earned on fund money shall be deposited into the fund.
2221          (4) (a) Except as provided in Subsection (4)(b), the executive director may only use
2222     fund money to pay:
2223          (i) the costs of maintenance, construction, reconstruction, or renovation to state and
2224     federal highways prioritized by the Transportation Commission through the prioritization
2225     process for new transportation capacity projects adopted under Section 72-1-304;
2226          (ii) the costs of maintenance, construction, reconstruction, or renovation to the highway
2227     projects described in Subsections 63B-18-401(2), (3), and (4);
2228          (iii) principal, interest, and issuance costs of bonds authorized by Section 63B-18-401

2229     minus the costs paid from the County of the First Class Highway Projects Fund in accordance
2230     with Subsection 72-2-121(4)(e);
2231          (iv) for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
2232     Lake County Revenue Bond Sinking Fund created by Section 72-2-121.3 the amount certified
2233     by Salt Lake County in accordance with Subsection 72-2-121.3(4)(c) as necessary to pay the
2234     debt service on $30,000,000 of the revenue bonds issued by Salt Lake County;
2235          (v) principal, interest, and issuance costs of bonds authorized by Section 63B-16-101
2236     for projects prioritized in accordance with Section 72-2-125;
2237          (vi) all highway general obligation bonds that are intended to be paid from revenues in
2238     the Centennial Highway Fund created by Section 72-2-118;
2239          (vii) for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First
2240     Class Highway Projects Fund created in Section 72-2-121 to be used for the purposes described
2241     in Section 72-2-121;
2242          (viii) if a political subdivision provides a contribution equal to or greater than 40% of
2243     the costs needed for construction, reconstruction, or renovation of paved pedestrian or paved
2244     nonmotorized transportation for projects that:
2245          (A) mitigate traffic congestion on the state highway system;
2246          (B) are part of an active transportation plan approved by the department; and
2247          (C) are prioritized by the commission through the prioritization process for new
2248     transportation capacity projects adopted under Section 72-1-304;
2249          (ix) $705,000,000 for the costs of right-of-way acquisition, construction,
2250     reconstruction, or renovation of or improvement to the following projects:
2251          (A) the connector road between Main Street and 1600 North in the city of Vineyard;
2252          (B) Geneva Road from University Parkway to 1800 South;
2253          (C) the SR-97 interchange at 5600 South on I-15;
2254          (D) two lanes on U-111 from Herriman Parkway to 11800 South;
2255          (E) widening I-15 between mileposts 10 and 13 and the interchange at milepost 11;
2256          (F) improvements to 1600 North in Orem from 1200 West to State Street;
2257          (G) widening I-15 between mileposts 6 and 8;
2258          (H) widening 1600 South from Main Street in the city of Spanish Fork to SR-51;
2259          (I) widening US 6 from Sheep Creek to Mill Fork between mileposts 195 and 197 in

2260     Spanish Fork Canyon;
2261          (J) I-15 northbound between mileposts 43 and 56;
2262          (K) a passing lane on SR-132 between mileposts 41.1 and 43.7 between mileposts 43
2263     and 45.1;
2264          (L) east Zion SR-9 improvements;
2265          (M) Toquerville Parkway;
2266          (N) an environmental study on Foothill Boulevard in the city of Saratoga Springs;
2267          (O) for construction of an interchange on Bangerter Highway at 13400 South; and
2268          (P) an environmental impact study for Kimball Junction in Summit County; and
2269          (x) $28,000,000 as pass-through funds, to be distributed as necessary to pay project
2270     costs based upon a statement of cash flow that the local jurisdiction where the project is located
2271     provides to the department demonstrating the need for money for the project, for the following
2272     projects in the following amounts:
2273          (A) $5,000,000 for Payson Main Street repair and replacement;
2274          (B) $8,000,000 for a Bluffdale 14600 South railroad bypass;
2275          (C) $5,000,000 for improvements to 4700 South in Taylorsville; and
2276          (D) $10,000,000 for improvements to the west side frontage roads adjacent to U.S. 40
2277     between mile markers 7 and 10.
2278          (b) The executive director may use fund money to exchange for an equal or greater
2279     amount of federal transportation funds to be used as provided in Subsection (4)(a).
2280          (5) (a) Except as provided in Subsection (5)(b), if the department receives a notice of
2281     ineligibility for a municipality as described in Subsection 10-9a-408(7), the executive director
2282     may not program fund money to a project prioritized by the commission under Section
2283     72-1-304, including fund money from the Transit Transportation Investment Fund, within the
2284     boundaries of [a municipality that is required to adopt a moderate income housing plan element
2285     as part of the municipality's general plan as described in Subsection 10-9a-401(3), if the
2286     municipality has failed to adopt a moderate income housing plan element as part of the
2287     municipality's general plan or has failed to implement the requirements of the moderate income
2288     housing plan as determined by the results of the Department of Workforce Service's review of
2289     the annual moderate income housing report described in Subsection 35A-8-803(1)(a)(vii)] the
2290     municipality during the fiscal year specified in the notice.

2291          [(b) Within the boundaries of a municipality that is required under Subsection
2292     10-9a-401(3) to plan for moderate income housing growth but has failed to adopt a moderate
2293     income housing plan element as part of the municipality's general plan or has failed to
2294     implement the requirements of the moderate income housing plan as determined by the results
2295     of the Department of Workforce Service's review of the annual moderate income housing
2296     report described in Subsection 35A-8-803(1)(a)(vii), the executive director:]
2297          (b) Within the boundaries of a municipality described in Subsection (5)(a), the
2298     executive director:
2299          (i) may program fund money in accordance with Subsection (4)(a) for a limited-access
2300     facility or interchange connecting limited-access facilities;
2301          (ii) may not program fund money for the construction, reconstruction, or renovation of
2302     an interchange on a limited-access facility;
2303          (iii) may program Transit Transportation Investment Fund money for a
2304     multi-community fixed guideway public transportation project; and
2305          (iv) may not program Transit Transportation Investment Fund money for the
2306     construction, reconstruction, or renovation of a station that is part of a fixed guideway public
2307     transportation project.
2308          (c) Subsections (5)(a) and (b) do not apply to a project programmed by the executive
2309     director before [May 1, 2020] July 1, 2022, for projects prioritized by the commission under
2310     Section 72-1-304.
2311          (6) (a) Except as provided in Subsection (6)(b), if the department receives a notice of
2312     ineligibility for a county as described in Subsection 17-27a-408(7), the executive director may
2313     not program fund money to a project prioritized by the commission under Section 72-1-304,
2314     including fund money from the Transit Transportation Investment Fund, within the boundaries
2315     of the unincorporated area of [a county, if the county is required to adopt a moderate income
2316     housing plan element as part of the county's general plan as described in Subsection
2317     17-27a-401(3) and if the county has failed to adopt a moderate income housing plan element as
2318     part of the county's general plan or has failed to implement the requirements of the moderate
2319     income housing plan as determined by the results of the Department of Workforce Service's
2320     review of the annual moderate income housing report described in Subsection
2321     35A-8-803(1)(a)(vii)] the county during the fiscal year specified in the notice.

2322          [(b) Within the boundaries of the unincorporated area of a county where the county is
2323     required under Subsection 17-27a-401(3) to plan for moderate income housing growth but has
2324     failed to adopt a moderate income housing plan element as part of the county's general plan or
2325     has failed to implement the requirements of the moderate income housing plan as determined
2326     by the results of the Department of Workforce Service's review of the annual moderate income
2327     housing report described in Subsection 35A-8-803(1)(a)(vii), the executive director:]
2328          (b) Within the boundaries of the unincorporated area of a county described in
2329     Subsection (6)(a), the executive director:
2330          (i) may program fund money in accordance with Subsection (4)(a) for a limited-access
2331     facility to a project prioritized by the commission under Section 72-1-304;
2332          (ii) may not program fund money for the construction, reconstruction, or renovation of
2333     an interchange on a limited-access facility;
2334          (iii) may program Transit Transportation Investment Fund money for a
2335     multi-community fixed guideway public transportation project; and
2336          (iv) may not program Transit Transportation Investment Fund money for the
2337     construction, reconstruction, or renovation of a station that is part of a fixed guideway public
2338     transportation project.
2339          (c) Subsections [(5)] (6)(a) and (b) do not apply to a project programmed by the
2340     executive director before July 1, [2020] 2022, for projects prioritized by the commission under
2341     Section 72-1-304.
2342          (7) (a) Before bonds authorized by Section 63B-18-401 or 63B-27-101 may be issued
2343     in any fiscal year, the department and the commission shall appear before the Executive
2344     Appropriations Committee of the Legislature and present the amount of bond proceeds that the
2345     department needs to provide funding for the projects identified in Subsections 63B-18-401(2),
2346     (3), and (4) or Subsection 63B-27-101(2) for the current or next fiscal year.
2347          (b) The Executive Appropriations Committee of the Legislature shall review and
2348     comment on the amount of bond proceeds needed to fund the projects.
2349          (8) The Division of Finance shall, from money deposited into the fund, transfer the
2350     amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
2351     Section 63B-18-401 or 63B-27-101 in the current fiscal year to the appropriate debt service or
2352     sinking fund.

2353          (9) (a) There is created in the Transportation Investment Fund of 2005 the Transit
2354     Transportation Investment Fund.
2355          (b) The fund shall be funded by:
2356          (i) contributions deposited into the fund in accordance with Section 59-12-103;
2357          (ii) appropriations into the account by the Legislature;
2358          (iii) deposits of sales and use tax increment related to a housing and transit
2359     reinvestment zone as described in Section 63N-3-610;
2360          (iv) private contributions; and
2361          (v) donations or grants from public or private entities.
2362          (c) (i) The fund shall earn interest.
2363          (ii) All interest earned on fund money shall be deposited into the fund.
2364          (d) Subject to Subsection (9)(e), the Legislature may appropriate money from the fund
2365     for public transit capital development of new capacity projects to be used as prioritized by the
2366     commission through the prioritization process adopted under Section 72-1-304.
2367          (e) (i) The Legislature may only appropriate money from the fund for a public transit
2368     capital development project or pedestrian or nonmotorized transportation project that provides
2369     connection to the public transit system if the public transit district or political subdivision
2370     provides funds of equal to or greater than 40% of the costs needed for the project.
2371          (ii) A public transit district or political subdivision may use money derived from a loan
2372     granted pursuant to Title 72, Chapter 2, Part 2, State Infrastructure Bank Fund, to provide all or
2373     part of the 40% requirement described in Subsection (9)(e)(i) if:
2374          (A) the loan is approved by the commission as required in Title 72, Chapter 2, Part 2,
2375     State Infrastructure Bank Fund; and
2376          (B) the proposed capital project has been prioritized by the commission pursuant to
2377     Section 72-1-303.
2378          (10) (a) There is created in the Transportation Investment Fund of 2005 the
2379     Cottonwood Canyons Transportation Investment Fund.
2380          (b) The fund shall be funded by:
2381          (i) money deposited into the fund in accordance with Section 59-12-103;
2382          (ii) appropriations into the account by the Legislature;
2383          (iii) private contributions; and

2384          (iv) donations or grants from public or private entities.
2385          (c) (i) The fund shall earn interest.
2386          (ii) All interest earned on fund money shall be deposited into the fund.
2387          (d) The Legislature may appropriate money from the fund for public transit or
2388     transportation projects in the Cottonwood Canyons of Salt Lake County.
2389          (11) If the department receives a notice of prioritization for a municipality as described
2390     in Subsection 10-9a-408(5), or a notice of prioritization for a county as described in Subsection
2391     17-27a-408(5), the executive director may, during the fiscal year specified in the notice, give
2392     priority consideration for programming fund money, including Transit Transportation
2393     Investment Fund money, to a project that is located within the boundaries of the municipality
2394     or the unincorporated areas of the county.
2395          Section 34. Appropriation.
2396          The following sums of money are appropriated for the fiscal year beginning July 1,
2397     2022, and ending June 30, 2023. These are additions to amounts previously appropriated for
2398     fiscal year 2023. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
2399     Act, the Legislature appropriates the following sums of money from the funds or accounts
2400     indicated for the use and support of the government of the state of Utah.
2401     ITEM 1
2402          To Department of Workforce Services -- Housing and Community Development
2403               From General Fund, One-time
$500,000

2404               Schedule of Programs:
2405                    Housing Development                    $500,000
2406          The Legislature intends that the Department of Workforce Services use funds
2407     appropriated under this item to develop a statewide database for moderate income housing
2408     units as described in Subsection 35A-8-803(1)(a)(viii).
2409     ITEM 2
2410          To Department of Workforce Services -- Housing and Community Development
2411               From General Fund, One-time
$750,000

2412               Schedule of Programs:
2413                    Housing Development                    $750,000
2414          The Legislature intends that the Department of Workforce Services use $375,000 of the

2415     funds appropriated under this item in fiscal years 2023 and 2024 to provide assistance to
2416     landlords under the Department of Workforce Services' Section 8 Landlord Incentive Program.
2417     Under the terms of Section 63J-1-603 of the Utah Code, the Legislature intends that funds
2418     appropriated to the Department of Workforce Services under this item shall not lapse at the
2419     close of fiscal year 2023.
2420     ITEM 3
2421          To Department of Workforce Services -- Olene Walker Housing Loan Fund
2422               From General Fund, One-time
$50,000,000

2423               Schedule of Programs:
2424                    Olene Walker Housing Loan Fund          $50,000,000
2425          The Legislature intends that the Department of Workforce Services use funds
2426     appropriated under this item to provide gap financing for tax credit projects and to offset
2427     related administrative costs under Section 35A-8-504.
2428     ITEM 4
2429          To Department of Workforce Services -- Housing and Community Development
2430               From General Fund
$208,000

2431               Schedule of Programs:
2432                    Housing Development               $208,000
2433          The Legislature intends that the Department of Workforce Services use funds
2434     appropriated under this item to hire two full-time equivalent employees.
2435     ITEM 5
2436          To Department of Workforce Services -- Administration
2437               From General Fund
$132,000

2438               Schedule of Programs:
2439                    Administrative Support               $132,000
2440          The Legislature intends that the Department of Workforce Services use funds
2441     appropriated under this item to hire one full-time equivalent employee.
2442     ITEM 6
2443          To Department of Workforce Services -- Housing and Community Development
2444               From General Fund, One-time
$250,000

2445                    Schedule of Programs:

2446                    Housing Development               $250,000
2447          The Legislature intends that the Department of Workforce Services distribute funds
2448     appropriated under this item to a nonprofit entity in the state that provides training and
2449     education on land use law. The Legislature intends that the Department of Workforce Services
2450     follow the provisions of Title 63G, Chapter 6a, Utah Procurement Code, in selecting the
2451     recipient entity.
2452          The Legislature intends that the recipient entity use funds distributed from the
2453     Department of Workforce Services under this item to provide regional land use training and
2454     workshops to local officials and policymakers on housing issues.
2455     ITEM 7
2456          To Department of Workforce Services -- Housing and Community Development
2457               From General Fund, One-time
$250,000

2458                    Schedule of Programs:
2459                    Housing Development               $250,000
2460          The Legislature intends that the Department of Workforce Services distribute funds
2461     appropriated under this item to a nonprofit entity in the state that engages in efforts to increase
2462     housing affordability through local zoning and housing regulation reform. The Legislature
2463     intends that the Department of Workforce Services follow the provisions of Title 63G, Chapter
2464     6a, Utah Procurement Code, in selecting the recipient entity.
2465     ITEM 8
2466          To Department of Workforce Services -- Rural Housing Fund
2467               From General Fund, One-time
$50,000,000

2468               Schedule of Programs:
2469                    Rural Housing Fund                    $50,000,000
2470          The Legislature intends that the Department of Workforce Services use funds
2471     appropriated under this item to provide loans and to offset administrative costs under Section
2472     35A-8-509.5.
2473     ITEM 9
2474          To Governor's Office of Economic Opportunity -- Pass-Through
2475               From General Fund, One-time
$3,000,000

2476               Schedule of Programs:

2477                    Pass-Through                         $3,000,000
2478          The Legislature intends that the Governor's Office of Economic Opportunity distribute
2479     $1,000,000 of the funds appropriated under this item in fiscal years 2023, 2024, and 2025 to a
2480     statewide business association that provides matching funds. The Legislature intends that the
2481     Governor's Office of Economic Opportunity follow the provisions of Title 63G, Chapter 6a,
2482     Utah Procurement Code, in selecting the recipient entity.
2483          The Legislature intends that the recipient entity use funds distributed from the
2484     Governor's Office of Economic Opportunity under this item to develop and implement a
2485     statewide marketing and outreach campaign to educate the business community on the impacts
2486     of housing affordability and other housing issues on workforce needs and business
2487     development.
2488          Under the terms of Section 63J-1-603 of the Utah Code, the Legislature intends that
2489     funds appropriated to the Governor's Office of Economic Opportunity under this item shall not
2490     lapse at the close of fiscal year 2023.
2491          Section 35. Repealer.
2492          This bill repeals:
2493          Section 10-8-85.4, Ordinances regarding short-term rentals -- Prohibition on
2494     ordinances restricting speech on short-term rental websites.
2495          Section 17-50-338, Ordinances regarding short-term rentals -- Prohibition on
2496     ordinances restricting speech on short-term rental websites.