1     
LOCAL LAND USE AND DEVELOPMENT REVISIONS

2     
2023 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Lincoln Fillmore

5     
House Sponsor: Stephen L. Whyte

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to local land use and development.
10     Highlighted Provisions:
11          This bill:
12          ▸     amends the penalties for noncompliance with the requirements applicable to a
13     political subdivision's moderate income housing report;
14          ▸     defines the circumstances under which a garage may be included in the definition of
15     an internal accessory dwelling unit;
16          ▸     amends a political subdivision's authority with respect to restrictions and
17     requirements for internal accessory dwelling units;
18          ▸     enacts a new process for subdivision review and approval; and
19          ▸     makes technical changes.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          None
24     Utah Code Sections Affected:
25     AMENDS:
26          10-9a-408, as last amended by Laws of Utah 2022, Chapter 406
27          10-9a-530, as enacted by Laws of Utah 2021, Chapter 102

28          17-27a-408, as last amended by Laws of Utah 2022, Chapter 406
29          17-27a-526, as enacted by Laws of Utah 2021, Chapter 102
30     ENACTS:
31          10-9a-604.1, Utah Code Annotated 1953
32     

33     Be it enacted by the Legislature of the state of Utah:
34          Section 1. Section 10-9a-408 is amended to read:
35          10-9a-408. Moderate income housing report -- Contents -- Prioritization for
36     funds or projects -- Ineligibility for funds after noncompliance -- Civil actions.
37          (1) As used in this section:
38          (a) "Division" means the Housing and Community Development Division within the
39     Department of Workforce Services.
40          (b) "Implementation plan" means the implementation plan adopted as part of the
41     moderate income housing element of a specified municipality's general plan as provided in
42     Subsection 10-9a-403(2)(c).
43          (c) "Moderate income housing report" or "report" means the report described in
44     Subsection (2)(a).
45          (d) "Moderate income housing strategy" means a strategy described in Subsection
46     10-9a-403(2)(b)(iii).
47          (e) "Specified municipality" means:
48          (i) a city of the first, second, third, or fourth class;
49          (ii) a city of the fifth class with a population of 5,000 or more, if the city is located
50     within a county of the first, second, or third class; or
51          (iii) a metro township with a population of 5,000 or more.
52          (2) (a) Beginning in 2022, on or before October 1 of each calendar year, the legislative
53     body of a specified municipality shall annually submit a written moderate income housing
54     report to the division.
55          (b) The moderate income housing report submitted in 2022 shall include:
56          (i) a description of each moderate income housing strategy selected by the specified
57     municipality for implementation; and
58          (ii) an implementation plan.

59          (c) The moderate income housing report submitted in each calendar year after 2022
60     shall include:
61          (i) the information required under Subsection (2)(b);
62          (ii) a description of each action, whether one-time or ongoing, taken by the specified
63     municipality during the previous fiscal year to implement the moderate income housing
64     strategies selected by the specified municipality for implementation;
65          (iii) a description of each land use regulation or land use decision made by the
66     specified municipality during the previous fiscal year to implement the moderate income
67     housing strategies, including an explanation of how the land use regulation or land use decision
68     supports the specified municipality's efforts to implement the moderate income housing
69     strategies;
70          (iv) a description of any barriers encountered by the specified municipality in the
71     previous fiscal year in implementing the moderate income housing strategies;
72          (v) information regarding the number of internal and external or detached accessory
73     dwelling units located within the specified municipality for which the specified municipality:
74          (A) issued a building permit to construct; or
75          (B) issued a business license to rent;
76          (vi) a description of how the market has responded to the selected moderate income
77     housing strategies, including the number of entitled moderate income housing units or other
78     relevant data; and
79          (vii) any recommendations on how the state can support the specified municipality in
80     implementing the moderate income housing strategies.
81          (d) The moderate income housing report shall be in a form:
82          (i) approved by the division; and
83          (ii) made available by the division on or before July 1 of the year in which the report is
84     required.
85          (3) Within 90 days after the day on which the division receives a specified
86     municipality's moderate income housing report, the division shall:
87          (a) post the report on the division's website;
88          (b) send a copy of the report to the Department of Transportation, the Governor's
89     Office of Planning and Budget, the association of governments in which the specified

90     municipality is located, and, if the specified municipality is located within the boundaries of a
91     metropolitan planning organization, the appropriate metropolitan planning organization; and
92          (c) subject to Subsection (4), review the report to determine compliance with
93     Subsection (2).
94          (4) (a) The report described in Subsection (2)(b) complies with Subsection (2) if the
95     report:
96          (i) includes the information required under Subsection (2)(b);
97          (ii) demonstrates to the division that the specified municipality made plans to
98     implement:
99          (A) three or more moderate income housing strategies if the specified municipality
100     does not have a fixed guideway public transit station; or
101          (B) subject to Subsection 10-9a-403(2)(b)(iv), five or more moderate income housing
102     strategies if the specified municipality has a fixed guideway public transit station; and
103          (iii) is in a form approved by the division.
104          (b) The report described in Subsection (2)(c) complies with Subsection (2) if the
105     report:
106          (i) includes the information required under Subsection (2)(c);
107          (ii) demonstrates to the division that the specified municipality made plans to
108     implement:
109          (A) three or more moderate income housing strategies if the specified municipality
110     does not have a fixed guideway public transit station; or
111          (B) four or more moderate income housing strategies if the specified municipality has a
112     fixed guideway public transit station;
113          (iii) is in a form approved by the division; and
114          (iv) provides sufficient information for the division to:
115          (A) assess the specified municipality's progress in implementing the moderate income
116     housing strategies;
117          (B) monitor compliance with the specified municipality's implementation plan;
118          (C) identify a clear correlation between the specified municipality's land use
119     regulations and land use decisions and the specified municipality's efforts to implement the
120     moderate income housing strategies; and

121          (D) identify how the market has responded to the specified municipality's selected
122     moderate income housing strategies.
123          (5) (a) A specified municipality qualifies for priority consideration under this
124     Subsection (5) if the specified municipality's moderate income housing report:
125          (i) complies with Subsection (2); and
126          (ii) demonstrates to the division that the specified municipality made plans to
127     implement:
128          (A) five or more moderate income housing strategies if the specified municipality does
129     not have a fixed guideway public transit station; or
130          (B) six or more moderate income housing strategies if the specified municipality has a
131     fixed guideway public transit station.
132          (b) The following apply to a specified municipality described in Subsection (5)(a)
133     during the fiscal year immediately following the fiscal year in which the report is required:
134          (i) the Transportation Commission may give priority consideration to transportation
135     projects located within the boundaries of the specified municipality in accordance with
136     Subsection 72-1-304(3)(c); and
137          (ii) the Governor's Office of Planning and Budget may give priority consideration for
138     awarding financial grants to the specified municipality under the COVID-19 Local Assistance
139     Matching Grant Program in accordance with Subsection 63J-4-802(6).
140          (c) Upon determining that a specified municipality qualifies for priority consideration
141     under this Subsection (5), the division shall send a notice of prioritization to the legislative
142     body of the specified municipality, the Department of Transportation, and the Governor's
143     Office of Planning and Budget.
144          (d) The notice described in Subsection (5)(c) shall:
145          (i) name the specified municipality that qualifies for priority consideration;
146          (ii) describe the funds or projects for which the specified municipality qualifies to
147     receive priority consideration;
148          (iii) specify the fiscal year during which the specified municipality qualifies for priority
149     consideration; and
150          (iv) state the basis for the division's determination that the specified municipality
151     qualifies for priority consideration.

152          (6) (a) If the division, after reviewing a specified municipality's moderate income
153     housing report, determines that the report does not comply with Subsection (2), the division
154     shall send a notice of noncompliance to the legislative body of the specified municipality.
155          (b) The notice described in Subsection (6)(a) shall:
156          (i) describe each deficiency in the report and the actions needed to cure each
157     deficiency;
158          (ii) state that the specified municipality has an opportunity to cure the deficiencies
159     within 90 days after the day on which the notice is sent; and
160          (iii) state that failure to cure the deficiencies within 90 days after the day on which the
161     notice is sent will result in ineligibility for funds and fees owed under Subsection (7).
162          (7) (a) A specified municipality is ineligible for funds and owes a fee under this
163     Subsection (7) if the specified municipality:
164          (i) fails to submit a moderate income housing report to the division; or
165          (ii) fails to cure the deficiencies in the specified municipality's moderate income
166     housing report within 90 days after the day on which the division sent to the specified
167     municipality a notice of noncompliance under Subsection (6).
168          (b) The following apply to a specified municipality described in Subsection (7)(a)
169     during the fiscal year immediately following the fiscal year in which the report is required:
170          (i) the executive director of the Department of Transportation may not program funds
171     from the Transportation Investment Fund of 2005, including the Transit Transportation
172     Investment Fund, to projects located within the boundaries of the specified municipality in
173     accordance with Subsection 72-2-124(5); and
174          [(ii) the Governor's Office of Planning and Budget may not award financial grants to
175     the specified municipality under the COVID-19 Local Assistance Matching Grant Program in
176     accordance with Subsection 63J-4-802(7)]
177          (ii) beginning with the moderate income housing report submitted in 2024, the
178     specified municipality shall pay a fee to the Olene Walker Housing Loan Fund in the amount of
179     $250 per day that the specified municipality:
180          (A) fails to submit a moderate income housing report to the division in accordance
181     with Subsection (2), beginning the day after the day on which the report was due; or
182          (B) fails to cure the deficiencies in the specified municipality's moderate income

183     housing report, beginning the day after the day by which the cure was required to occur as
184     described in the notice under Subsection (6)(b).
185          (c) Upon determining that a specified municipality is ineligible for funds under this
186     Subsection (7), the division shall send a notice of ineligibility to the legislative body of the
187     specified municipality, the Department of Transportation, and the Governor's Office of
188     Planning and Budget.
189          (d) The notice described in Subsection (7)(c) shall:
190          (i) name the specified municipality that is ineligible for funds;
191          (ii) describe the funds for which the specified municipality is ineligible to receive;
192          (iii) specify the fiscal year during which the specified municipality is ineligible for
193     funds; and
194          (iv) state the basis for the division's determination that the specified municipality is
195     ineligible for funds.
196          (8) In a civil action seeking enforcement or claiming a violation of this section or of
197     Subsection 10-9a-404(4)(c), a plaintiff may not recover damages but may be awarded only
198     injunctive or other equitable relief.
199          Section 2. Section 10-9a-530 is amended to read:
200          10-9a-530. Internal accessory dwelling units.
201          (1) As used in this section:
202          (a) "Internal accessory dwelling unit" means an accessory dwelling unit created:
203          (i) within a primary dwelling;
204          (ii) within the footprint of the primary dwelling described in Subsection (1)(a)(i) at the
205     time the internal accessory dwelling unit is created; and
206          (iii) for the purpose of offering a long-term rental of [30] 31 consecutive days or
207     longer.
208          (b) (i) "Primary dwelling" means a single-family dwelling that:
209          [(i)] (A) is detached; and
210          [(ii)] (B) is occupied as the primary residence of the owner of record.
211          (ii) "Primary dwelling" includes a garage if the garage is connected to the primary
212     dwelling by a common wall.
213          (2) In any area zoned primarily for residential use:

214          (a) the use of an internal accessory dwelling unit is a permitted use; [and]
215          (b) except as provided in Subsections (3) and (4), a municipality may not establish any
216     restrictions or requirements for the construction or use of one internal accessory dwelling unit
217     within a primary dwelling, including a restriction or requirement governing:
218          (i) the size of the internal accessory dwelling unit in relation to the primary dwelling;
219          (ii) total lot size; [or]
220          (iii) street frontage[.]; or
221          (iv) internal connectivity; and
222          (c) a municipality's regulation of architectural elements for internal accessory dwelling
223     units must be consistent with the regulation for single family units.
224          (3) An internal accessory dwelling unit shall comply with all applicable building,
225     health, and fire codes.
226          (4) A municipality may:
227          (a) prohibit the installation of a separate utility meter for an internal accessory dwelling
228     unit;
229          (b) require that an internal accessory dwelling unit be designed in a manner that does
230     not change the appearance of the primary dwelling as a single-family dwelling;
231          (c) require a primary dwelling:
232          (i) regardless of whether the primary dwelling is existing or new construction, to
233     include one additional on-site parking space for an internal accessory dwelling unit, [regardless
234     of whether the primary dwelling is existing or new construction] in addition to the parking
235     spaces required under the municipality's land use ordinance, except that if the municipality's
236     land use ordinance requires four or more off-street parking spaces within the setbacks, the
237     municipality may not require the additional space contemplated under this Subsection (4)(c)(i);
238     and
239          (ii) to replace any parking spaces contained within a garage or carport if an internal
240     accessory dwelling unit is created within the garage or carport;
241          (d) prohibit the creation of an internal accessory dwelling unit within a mobile home as
242     defined in Section 57-16-3;
243          (e) require the owner of a primary dwelling to obtain a permit or license for renting an
244     internal accessory dwelling unit;

245          (f) prohibit the creation of an internal accessory dwelling unit within a zoning district
246     covering an area that is equivalent to:
247          (i) 25% or less of the total area in the municipality that is zoned primarily for
248     residential use, except that the municipality may not prohibit newly constructed internal
249     accessory dwelling units with a final plat approval dated on or after October 1, 2021; or
250          (ii) 67% or less of the total area in the municipality that is zoned primarily for
251     residential use, if the main campus of a state or private university with a student population of
252     10,000 or more is located within the municipality;
253          (g) prohibit the creation of an internal accessory dwelling unit if the primary dwelling
254     is served by a failing septic tank;
255          (h) prohibit the creation of an internal accessory dwelling unit if the lot containing the
256     primary dwelling is 6,000 square feet or less in size;
257          (i) prohibit the rental or offering the rental of an internal accessory dwelling unit for a
258     period of less than 30 consecutive days;
259          (j) prohibit the rental of an internal accessory dwelling unit if the internal accessory
260     dwelling unit is located in a dwelling that is not occupied as the owner's primary residence;
261          (k) hold a lien against a property that contains an internal accessory dwelling unit in
262     accordance with Subsection (5); and
263          (l) record a notice for an internal accessory dwelling unit in accordance with
264     Subsection (6).
265          (5) (a) In addition to any other legal or equitable remedies available to a municipality, a
266     municipality may hold a lien against a property that contains an internal accessory dwelling
267     unit if:
268          (i) the owner of the property violates any of the provisions of this section or any
269     ordinance adopted under Subsection (4);
270          (ii) the municipality provides a written notice of violation in accordance with
271     Subsection (5)(b);
272          (iii) the municipality holds a hearing and determines that the violation has occurred in
273     accordance with Subsection (5)(d), if the owner files a written objection in accordance with
274     Subsection (5)(b)(iv);
275          (iv) the owner fails to cure the violation within the time period prescribed in the

276     written notice of violation under Subsection (5)(b);
277          (v) the municipality provides a written notice of lien in accordance with Subsection
278     (5)(c); and
279          (vi) the municipality records a copy of the written notice of lien described in
280     Subsection [(5)(a)(iv)] (5)(a)(v) with the county recorder of the county in which the property is
281     located.
282          (b) The written notice of violation shall:
283          (i) describe the specific violation;
284          (ii) provide the owner of the internal accessory dwelling unit a reasonable opportunity
285     to cure the violation that is:
286          (A) no less than 14 days after the day on which the municipality sends the written
287     notice of violation, if the violation results from the owner renting or offering to rent the internal
288     accessory dwelling unit for a period of less than 30 consecutive days; or
289          (B) no less than 30 days after the day on which the municipality sends the written
290     notice of violation, for any other violation;
291          (iii) state that if the owner of the property fails to cure the violation within the time
292     period described in Subsection (5)(b)(ii), the municipality may hold a lien against the property
293     in an amount of up to $100 for each day of violation after the day on which the opportunity to
294     cure the violation expires;
295          (iv) notify the owner of the property:
296          (A) that the owner may file a written objection to the violation within 14 days after the
297     day on which the written notice of violation is post-marked or posted on the property; and
298          (B) of the name and address of the municipal office where the owner may file the
299     written objection;
300          (v) be mailed to:
301          (A) the property's owner of record; and
302          (B) any other individual designated to receive notice in the owner's license or permit
303     records; and
304          (vi) be posted on the property.
305          (c) The written notice of lien shall:
306          (i) comply with the requirements of Section 38-12-102;

307          (ii) state that the property is subject to a lien;
308          (iii) specify the lien amount, in an amount of up to $100 for each day of violation after
309     the day on which the opportunity to cure the violation expires;
310          (iv) be mailed to:
311          (A) the property's owner of record; and
312          (B) any other individual designated to receive notice in the owner's license or permit
313     records; and
314          (v) be posted on the property.
315          (d) (i) If an owner of property files a written objection in accordance with Subsection
316     (5)(b)(iv), the municipality shall:
317          (A) hold a hearing in accordance with Title 52, Chapter 4, Open and Public Meetings
318     Act, to conduct a review and determine whether the specific violation described in the written
319     notice of violation under Subsection (5)(b) has occurred; and
320          (B) notify the owner in writing of the date, time, and location of the hearing described
321     in Subsection (5)(d)(i)(A) no less than 14 days before the day on which the hearing is held.
322          (ii) If an owner of property files a written objection under Subsection (5)(b)(iv), a
323     municipality may not record a lien under this Subsection (5) until the municipality holds a
324     hearing and determines that the specific violation has occurred.
325          (iii) If the municipality determines at the hearing that the specific violation has
326     occurred, the municipality may impose a lien in an amount of up to $100 for each day of
327     violation after the day on which the opportunity to cure the violation expires, regardless of
328     whether the hearing is held after the day on which the opportunity to cure the violation has
329     expired.
330          (e) If an owner cures a violation within the time period prescribed in the written notice
331     of violation under Subsection (5)(b), the municipality may not hold a lien against the property,
332     or impose any penalty or fee on the owner, in relation to the specific violation described in the
333     written notice of violation under Subsection (5)(b).
334          (6) (a) A municipality that issues, on or after October 1, 2021, a permit or license to an
335     owner of a primary dwelling to rent an internal accessory dwelling unit, or a building permit to
336     an owner of a primary dwelling to create an internal accessory dwelling unit, may record a
337     notice in the office of the recorder of the county in which the primary dwelling is located.

338          (b) The notice described in Subsection (6)(a) shall include:
339          (i) a description of the primary dwelling;
340          (ii) a statement that the primary dwelling contains an internal accessory dwelling unit;
341     and
342          (iii) a statement that the internal accessory dwelling unit may only be used in
343     accordance with the municipality's land use regulations.
344          (c) The municipality shall, upon recording the notice described in Subsection (6)(a),
345     deliver a copy of the notice to the owner of the internal accessory dwelling unit.
346          Section 3. Section 10-9a-604.1 is enacted to read:
347          10-9a-604.1. Process for subdivision review and approval.
348          (1) As used in this section:
349          (a) "Administrative land use authority" means a person, board, or commission,
350     including municipal staff or a municipal planning commission.
351          (b) "Administrative land use authority" does not include a municipal legislative body.
352          (2) A municipal ordinance governing the subdivision of land shall:
353          (a) comply with this section;
354          (b) designate a single administrative land use authority for the review of preliminary
355     applications to subdivide land; and
356          (c) identify a standard method and form of application for preliminary subdivision
357     applications and final subdivision applications.
358          (3) A preliminary subdivision application shall comply with all applicable municipal
359     ordinances and requirements of this section.
360          (4) An administrative land use authority shall review a preliminary subdivision
361     application in a public meeting.
362          (5) With respect to a preliminary application to subdivide land, an administrative land
363     use authority may:
364          (a) receive public comment; and
365          (b) conduct one public hearing.
366          (6) A municipality shall give written notice of the preliminary subdivision application
367     and the time, place, and manner of the public meeting under Subsection (4), and any public
368     comment opportunity or public hearing under Subsection (5), at least 30 days before the

369     meeting, public comment opportunity, or public hearing, by:
370          (a) mailing the notice to the owners of any property that is within 300 feet of the
371     property that is the subject property of the application to subdivide land; or
372          (b) posting the notice on a sign that:
373          (i) is on the property that is the subject property of the application to subdivide; and
374          (ii) at a location and of sufficient size, durability, and print quality that is reasonably
375     calculated to give notice to passers-by.
376          (7) (a) An administrative land use authority shall approve a preliminary subdivision
377     application if the application and record of proceedings before the administrative land use
378     authority demonstrate that the application complies with:
379          (i) the applicable municipal ordinances; and
380          (ii) the requirements of this section.
381          (b) An administrative land use authority may deny a preliminary subdivision
382     application only if there is substantial evidence to show that the application does not comply
383     with:
384          (i) the applicable municipal ordinances; or
385          (ii) the requirements of this section.
386          (8) A municipality shall review and approve or deny a final subdivision application in
387     accordance with the provisions of this section and municipal ordinances, which:
388          (a) may permit concurrent processing of the final subdivision application with the
389     preliminary subdivision application; and
390          (b) shall not require planning commission or city council approval.
391          (9) A municipality shall approve the final subdivision application if the final
392     subdivision application complies with:
393          (a) the preliminary subdivision approval granted under Subsection (7)(a);
394          (b) the applicable municipal ordinances; and
395          (c) the requirements of this section.
396          Section 4. Section 17-27a-408 is amended to read:
397          17-27a-408. Moderate income housing report -- Contents -- Prioritization for
398     funds or projects -- Ineligibility for funds after noncompliance -- Civil actions.
399          (1) As used in this section:

400          (a) "Division" means the Housing and Community Development Division within the
401     Department of Workforce Services.
402          (b) "Implementation plan" means the implementation plan adopted as part of the
403     moderate income housing element of a specified county's general plan as provided in
404     Subsection [10-9a-403(2)(c)] 17-27a-401(3)(a).
405          (c) "Moderate income housing report" or "report" means the report described in
406     Subsection (2)(a).
407          (d) "Moderate income housing strategy" means a strategy described in Subsection
408     17-27a-403(2)(b)(ii).
409          (e) "Specified county" means a county of the first, second, or third class, which has a
410     population of more than 5,000 in the county's unincorporated areas.
411          (2) (a) Beginning in 2022, on or before October 1 of each calendar year, the legislative
412     body of a specified county shall annually submit a written moderate income housing report to
413     the division.
414          (b) The moderate income housing report submitted in 2022 shall include:
415          (i) a description of each moderate income housing strategy selected by the specified
416     county for implementation; and
417          (ii) an implementation plan.
418          (c) The moderate income housing report submitted in each calendar year after 2022
419     shall include:
420          (i) the information required under Subsection (2)(b);
421          (ii) a description of each action, whether one-time or ongoing, taken by the specified
422     county during the previous fiscal year to implement the moderate income housing strategies
423     selected by the specified county for implementation;
424          (iii) a description of each land use regulation or land use decision made by the
425     specified county during the previous fiscal year to implement the moderate income housing
426     strategies, including an explanation of how the land use regulation or land use decision
427     supports the specified county's efforts to implement the moderate income housing strategies;
428          (iv) a description of any barriers encountered by the specified county in the previous
429     fiscal year in implementing the moderate income housing strategies; and
430          (v) information regarding the number of internal and external or detached accessory

431     dwelling units located within the specified county for which the specified county:
432          (A) issued a building permit to construct; or
433          (B) issued a business license to rent;
434          (vi) a description of how the market has responded to the selected moderate income
435     housing strategies, including the number of entitled moderate income housing units or other
436     relevant data; and
437          (vii) any recommendations on how the state can support the specified county in
438     implementing the moderate income housing strategies.
439          (d) The moderate income housing report shall be in a form:
440          (i) approved by the division; and
441          (ii) made available by the division on or before July 1 of the year in which the report is
442     required.
443          (3) Within 90 days after the day on which the division receives a specified county's
444     moderate income housing report, the division shall:
445          (a) post the report on the division's website;
446          (b) send a copy of the report to the Department of Transportation, the Governor's
447     Office of Planning and Budget, the association of governments in which the specified county is
448     located, and, if the unincorporated area of the specified county is located within the boundaries
449     of a metropolitan planning organization, the appropriate metropolitan planning organization;
450     and
451          (c) subject to Subsection (4), review the report to determine compliance with
452     Subsection (2).
453          (4) (a) The report described in Subsection (2)(b) complies with Subsection (2) if the
454     report:
455          (i) includes the information required under Subsection (2)(b);
456          (ii) demonstrates to the division that the specified county made plans to implement
457     three or more moderate income housing strategies; and
458          (iii) is in a form approved by the division.
459          (b) The report described in Subsection (2)(c) complies with Subsection (2) if the
460     report:
461          (i) includes the information required under Subsection (2)(c);

462          (ii) demonstrates to the division that the specified county made plans to implement
463     three or more moderate income housing strategies;
464          (iii) is in a form approved by the division; and
465          (iv) provides sufficient information for the division to:
466          (A) assess the specified county's progress in implementing the moderate income
467     housing strategies;
468          (B) monitor compliance with the specified county's implementation plan;
469          (C) identify a clear correlation between the specified county's land use decisions and
470     efforts to implement the moderate income housing strategies; and
471          (D) identify how the market has responded to the specified county's selected moderate
472     income housing strategies.
473          (5) (a) A specified county qualifies for priority consideration under this Subsection (5)
474     if the specified county's moderate income housing report:
475          (i) complies with Subsection (2); and
476          (ii) demonstrates to the division that the specified county made plans to implement five
477     or more moderate income housing strategies.
478          (b) The following apply to a specified county described in Subsection (5)(a) during the
479     fiscal year immediately following the fiscal year in which the report is required:
480          (i) the Transportation Commission may give priority consideration to transportation
481     projects located within the unincorporated areas of the specified county in accordance with
482     Subsection 72-1-304(3)(c); and
483          (ii) the Governor's Office of Planning and Budget may give priority consideration for
484     awarding financial grants to the specified county under the COVID-19 Local Assistance
485     Matching Grant Program in accordance with Subsection 63J-4-802(6).
486          (c) Upon determining that a specified county qualifies for priority consideration under
487     this Subsection (5), the division shall send a notice of prioritization to the legislative body of
488     the specified county, the Department of Transportation, and the Governor's Office of Planning
489     and Budget.
490          (d) The notice described in Subsection (5)(c) shall:
491          (i) name the specified county that qualifies for priority consideration;
492          (ii) describe the funds or projects for which the specified county qualifies to receive

493     priority consideration;
494          (iii) specify the fiscal year during which the specified county qualifies for priority
495     consideration; and
496          (iv) state the basis for the division's determination that the specified county qualifies
497     for priority consideration.
498          (6) (a) If the division, after reviewing a specified county's moderate income housing
499     report, determines that the report does not comply with Subsection (2), the division shall send a
500     notice of noncompliance to the legislative body of the specified county.
501          (b) The notice described in Subsection (6)(a) shall:
502          (i) describe each deficiency in the report and the actions needed to cure each
503     deficiency;
504          (ii) state that the specified county has an opportunity to cure the deficiencies within 90
505     days after the day on which the notice is sent; and
506          (iii) state that failure to cure the deficiencies within 90 days after the day on which the
507     notice is sent will result in ineligibility for funds and fees owed under Subsection (7).
508          (7) (a) A specified county is ineligible for funds and owes a fee under this Subsection
509     (7) if the specified county:
510          (i) fails to submit a moderate income housing report to the division; or
511          (ii) fails to cure the deficiencies in the specified county's moderate income housing
512     report within 90 days after the day on which the division sent to the specified county a notice of
513     noncompliance under Subsection (6).
514          (b) The following apply to a specified county described in Subsection (7)(a) during the
515     fiscal year immediately following the fiscal year in which the report is required:
516          (i) the executive director of the Department of Transportation may not program funds
517     from the Transportation Investment Fund of 2005, including the Transit Transportation
518     Investment Fund, to projects located within the unincorporated areas of the specified county in
519     accordance with Subsection 72-2-124(6); and
520          [(ii) the Governor's Office of Planning and Budget may not award financial grants to
521     the specified county under the COVID-19 Local Assistance Matching Grant Program in
522     accordance with Subsection 63J-4-802(7)]
523          (ii) beginning with the moderate income housing report submitted in 2024, the

524     specified county shall pay a fee to the Olene Walker Housing Loan Fund in the amount of $250
525     per day that the specified county:
526          (A) fails to submit a moderate income housing report to the division in accordance
527     with Subsection (2), beginning the day after the day on which the report was due; or
528          (B) fails to cure the deficiencies in the specified municipality's moderate income
529     housing report, beginning the day after the day by which the cure was required to occur as
530     described in the notice under Subsection (6)(b).
531          (c) Upon determining that a specified county is ineligible for funds under this
532     Subsection (7), the division shall send a notice of ineligibility to the legislative body of the
533     specified county, the Department of Transportation, and the Governor's Office of Planning and
534     Budget.
535          (d) The notice described in Subsection (7)(c) shall:
536          (i) name the specified county that is ineligible for funds;
537          (ii) describe the funds for which the specified county is ineligible to receive;
538          (iii) specify the fiscal year during which the specified county is ineligible for funds;
539     and
540          (iv) state the basis for the division's determination that the specified county is ineligible
541     for funds.
542          (8) In a civil action seeking enforcement or claiming a violation of this section or of
543     Subsection 17-27a-404(5)(c), a plaintiff may not recover damages but may be awarded only
544     injunctive or other equitable relief.
545          Section 5. Section 17-27a-526 is amended to read:
546          17-27a-526. Internal accessory dwelling units.
547          (1) As used in this section:
548          (a) "Internal accessory dwelling unit" means an accessory dwelling unit created:
549          (i) within a primary dwelling;
550          (ii) within the footprint of the primary dwelling described in Subsection (1)(a)(i) at the
551     time the internal accessory dwelling unit is created; and
552          (iii) for the purpose of offering a long-term rental of [30] 31 consecutive days or
553     longer.
554          (b) (i) "Primary dwelling" means a single-family dwelling that:

555          [(i)] (A) is detached; and
556          [(ii)] (B) is occupied as the primary residence of the owner of record.
557          (ii) "Primary dwelling" includes a garage if the garage is connected to the primary
558     dwelling by a common wall.
559          (2) In any area zoned primarily for residential use:
560          (a) the use of an internal accessory dwelling unit is a permitted use; [and]
561          (b) except as provided in Subsections (3) and (4), a county may not establish any
562     restrictions or requirements for the construction or use of one internal accessory dwelling unit
563     within a primary dwelling, including a restriction or requirement governing:
564          (i) the size of the internal accessory dwelling unit in relation to the primary dwelling;
565          (ii) total lot size; [or]
566          (iii) street frontage[.]; or
567          (iv) internal connectivity; and
568          (c) a county's regulation of architectural elements for internal accessory dwelling units
569     must be consistent with the regulation for single family units.
570          (3) An internal accessory dwelling unit shall comply with all applicable building,
571     health, and fire codes.
572          (4) A county may:
573          (a) prohibit the installation of a separate utility meter for an internal accessory dwelling
574     unit;
575          (b) require that an internal accessory dwelling unit be designed in a manner that does
576     not change the appearance of the primary dwelling as a single-family dwelling;
577          (c) require a primary dwelling:
578          (i) regardless of whether the primary dwelling is existing or new construction, to
579     include one additional on-site parking space for an internal accessory dwelling unit, [regardless
580     of whether the primary dwelling is existing or new construction] in addition to the parking
581     spaces required under the county's land use ordinance, except that if the county's land use
582     ordinance requires four or more off-street parking spaces within the setbacks, the county may
583     not require the additional space contemplated under this Subsection (4)(c)(i); and
584          (ii) to replace any parking spaces contained within a garage or carport if an internal
585     accessory dwelling unit is created within the garage or carport;

586          (d) prohibit the creation of an internal accessory dwelling unit within a mobile home as
587     defined in Section 57-16-3;
588          (e) require the owner of a primary dwelling to obtain a permit or license for renting an
589     internal accessory dwelling unit;
590          (f) prohibit the creation of an internal accessory dwelling unit within a zoning district
591     covering an area that is equivalent to 25% or less of the total unincorporated area in the county
592     that is zoned primarily for residential use, except that the municipality may not prohibit newly
593     constructed internal accessory dwelling units with a final plat approval dated on or after
594     October 1, 2021;
595          (g) prohibit the creation of an internal accessory dwelling unit if the primary dwelling
596     is served by a failing septic tank;
597          (h) prohibit the creation of an internal accessory dwelling unit if the lot containing the
598     primary dwelling is 6,000 square feet or less in size;
599          (i) prohibit the rental or offering the rental of an internal accessory dwelling unit for a
600     period of less than 30 consecutive days;
601          (j) prohibit the rental of an internal accessory dwelling unit if the internal accessory
602     dwelling unit is located in a dwelling that is not occupied as the owner's primary residence;
603          (k) hold a lien against a property that contains an internal accessory dwelling unit in
604     accordance with Subsection (5); and
605          (l) record a notice for an internal accessory dwelling unit in accordance with
606     Subsection (6).
607          (5) (a) In addition to any other legal or equitable remedies available to a county, a
608     county may hold a lien against a property that contains an internal accessory dwelling unit if:
609          (i) the owner of the property violates any of the provisions of this section or any
610     ordinance adopted under Subsection (4);
611          (ii) the county provides a written notice of violation in accordance with Subsection
612     (5)(b);
613          (iii) the county holds a hearing and determines that the violation has occurred in
614     accordance with Subsection (5)(d), if the owner files a written objection in accordance with
615     Subsection (5)(b)(iv);
616          (iv) the owner fails to cure the violation within the time period prescribed in the

617     written notice of violation under Subsection (5)(b);
618          (v) the county provides a written notice of lien in accordance with Subsection (5)(c);
619     and
620          (vi) the county records a copy of the written notice of lien described in Subsection
621     [(5)(a)(iv)] (5)(a)(v) with the county recorder of the county in which the property is located.
622          (b) The written notice of violation shall:
623          (i) describe the specific violation;
624          (ii) provide the owner of the internal accessory dwelling unit a reasonable opportunity
625     to cure the violation that is:
626          (A) no less than 14 days after the day on which the county sends the written notice of
627     violation, if the violation results from the owner renting or offering to rent the internal
628     accessory dwelling unit for a period of less than 30 consecutive days; or
629          (B) no less than 30 days after the day on which the county sends the written notice of
630     violation, for any other violation; [and]
631          (iii) state that if the owner of the property fails to cure the violation within the time
632     period described in Subsection (5)(b)(ii), the county may hold a lien against the property in an
633     amount of up to $100 for each day of violation after the day on which the opportunity to cure
634     the violation expires;
635          (iv) notify the owner of the property:
636          (A) that the owner may file a written objection to the violation within 14 days after the
637     day on which the written notice of violation is post-marked or posted on the property; and
638          (B) of the name and address of the county office where the owner may file the written
639     objection;
640          (v) be mailed to:
641          (A) the property's owner of record; and
642          (B) any other individual designated to receive notice in the owner's license or permit
643     records; and
644          (vi) be posted on the property.
645          (c) The written notice of lien shall:
646          (i) comply with the requirements of Section 38-12-102;
647          (ii) describe the specific violation;

648          (iii) specify the lien amount, in an amount of up to $100 for each day of violation after
649     the day on which the opportunity to cure the violation expires;
650          (iv) be mailed to:
651          (A) the property's owner of record; and
652          (B) any other individual designated to receive notice in the owner's license or permit
653     records; and
654          (v) be posted on the property.
655          (d) (i) If an owner of property files a written objection in accordance with Subsection
656     (5)(b)(iv), the county shall:
657          (A) hold a hearing in accordance with Title 52, Chapter 4, Open and Public Meetings
658     Act, to conduct a review and determine whether the specific violation described in the written
659     notice of violation under Subsection (5)(b) has occurred; and
660          (B) notify the owner in writing of the date, time, and location of the hearing described
661     in Subsection (5)(d)(i)(A) no less than 14 days before the day on which the hearing is held.
662          (ii) If an owner of property files a written objection under Subsection (5)(b)(iv), a
663     county may not record a lien under this Subsection (5) until the county holds a hearing and
664     determines that the specific violation has occurred.
665          (iii) If the county determines at the hearing that the specific violation has occurred, the
666     county may impose a lien in an amount of up to $100 for each day of violation after the day on
667     which the opportunity to cure the violation expires, regardless of whether the hearing is held
668     after the day on which the opportunity to cure the violation has expired.
669          (e) If an owner cures a violation within the time period prescribed in the written notice
670     of violation under Subsection (5)(b), the county may not hold a lien against the property, or
671     impose any penalty or fee on the owner, in relation to the specific violation described in the
672     written notice of violation under Subsection (5)(b).
673          (6) (a) A county that issues, on or after October 1, 2021, a permit or license to an
674     owner of a primary dwelling to rent an internal accessory dwelling unit, or a building permit to
675     an owner of a primary dwelling to create an internal accessory dwelling unit, may record a
676     notice in the office of the recorder of the county in which the primary dwelling is located.
677          (b) The notice described in Subsection (6)(a) shall include:
678          (i) a description of the primary dwelling;

679          (ii) a statement that the primary dwelling contains an internal accessory dwelling unit;
680     and
681          (iii) a statement that the internal accessory dwelling unit may only be used in
682     accordance with the county's land use regulations.
683          (c) The county shall, upon recording the notice described in Subsection (6)(a), deliver a
684     copy of the notice to the owner of the internal accessory dwelling unit.