Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 364 Sixth Substitute (2023GS)

Sponsor

Rep. Whyte, S.

Final action

House/ to Governor 3/13/2023

Outcome

House/ to Governor

Summary

What it does

• This bill:
• modifies provisions related to the moderate income housing reporting requirements for certain cities and counties;
• allows a city or county to appeal the Housing and Community Development Division's determination of noncompliance in relation to city and county moderate income housing reports;
• establishes an appeal board to hear and decide appeals in relation to city and county moderate income housing reports;
• requires the Department of Workforce Services to report annually on expenditures authorized by the Utah Housing Preservation Fund;
• establishes the Housing Support Grant Program within the Office of Homeless Services for supporting residential projects that include affordable housing units;
• increases the aggregate annual amount of Utah low-income housing tax credits that may be allocated beginning in 2023;
• requires the Legislature to conduct reviews of the aggregate annual amount of Utah low-income housing tax credits that may be allocated beginning in 2023;
• establishes a future repeal date of the aggregate annual amount of Utah low-income housing tax credits that may be allocated beginning in 2023; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

HOUSING AFFORDABILITY AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Stephen L. Whyte
Senate Sponsor: 
____________
LONG TITLE
General Description:
This bill modifies provisions relating to affordable housing and the provision of
services related to affordable housing.
Highlighted Provisions:
This bill:
▸ modifies provisions related to the moderate income housing reporting requirements
for certain cities and counties;
▸ allows a city or county to appeal the Housing and Community Development
Division's determination of noncompliance in relation to city and county moderate
income housing reports;
▸ establishes an appeal board to hear and decide appeals in relation to city and county
moderate income housing reports;
▸ requires the Department of Workforce Services to report annually on expenditures
authorized by the Utah Housing Preservation Fund;
▸ establishes the Housing Support Grant Program within the Office of Homeless
Services for supporting residential projects that include affordable housing units;
▸ increases the aggregate annual amount of Utah low-income housing tax credits that
may be allocated beginning in 2023;
▸ requires the Legislature to conduct reviews of the aggregate annual amount of Utah
low-income housing tax credits that may be allocated beginning in 2023;
▸ establishes a future repeal date of the aggregate annual amount of Utah low-income
housing tax credits that may be allocated beginning in 2023; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
10-9a-401
, as last amended by Laws of Utah 2022, Chapters 282, 406
10-9a-403
, as last amended by Laws of Utah 2022, Chapters 282, 406 and last amended
by Coordination Clause, Laws of Utah 2022, Chapter 406
10-9a-408
, as last amended by Laws of Utah 2022, Chapter 406
17-27a-401
, as last amended by Laws of Utah 2022, Chapters 282, 406
17-27a-403
, as last amended by Laws of Utah 2022, Chapters 282, 406
17-27a-408
, as last amended by Laws of Utah 2022, Chapter 406
59-7-607
, as last amended by Laws of Utah 2020, Chapter 241
59-10-1010
, as last amended by Laws of Utah 2020, Chapter 241
63I-2-259
, as last amended by Laws of Utah 2022, Chapter 264
ENACTS:
35A-8-2401
, Utah Code Annotated 1953
35A-16-701
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
10-9a-401
 is amended to read:
10-9a-401.
General plan required -- Content.
(1) To accomplish the purposes of this chapter, a municipality shall prepare and adopt
a comprehensive, long-range general plan for:
(a) present and future needs of the municipality; and
(b) growth and development of all or any part of the land within the municipality.
(2) The general plan may provide for:
(a) health, general welfare, safety, energy conservation, transportation, prosperity, civic
activities, aesthetics, and recreational, educational, and cultural opportunities;
(b) the reduction of the waste of physical, financial, or human resources that result
from either excessive congestion or excessive scattering of population;
(c) the efficient and economical use, conservation, and production of the supply of:
(i) food and water; and
(ii) drainage, sanitary, and other facilities and resources;
(d) the use of energy conservation and solar and renewable energy resources;
(e) the protection of urban development;
(f) if the municipality is a town, the protection or promotion of moderate income
housing;
(g) the protection and promotion of air quality;
(h) historic preservation;
(i) identifying future uses of land that are likely to require an expansion or significant
modification of services or facilities provided by an affected entity; and
(j) an official map.
(3) (a) The general plan of a specified municipality, as defined in Section 
10-9a-408
,
shall include a moderate income housing element that meets the requirements of Subsection
10-9a-403
(2)(a)(iii).
[
(b) On or before October 1, 2022, a specified municipality, as defined in Section
10-9a-408
, with a general plan that does not comply with Subsection (3)(a) shall amend the
general plan to comply with Subsection (3)(a)
]
(b) If a municipality changes from one class to another or grows in population to
become a specified municipality, as defined in Section 
10-9a-408
, the municipality shall amend
the municipality's general plan to comply with Subsection (3)(a) on or before August 1 of the
year in which the municipality first becomes a specified municipality
.
(c) A municipality described in Subsection (3)(b) shall send a copy of the
municipality's amended general plan to:
(i) the association of governments, established pursuant to an interlocal agreement
under Title 11, Chapter 13, Interlocal Cooperation Act, of which the municipality is a member;
or
(ii) if the municipality is located within the boundaries of a metropolitan planning
organization, the appropriate metropolitan planning organization.
(4) Subject to Subsection 
10-9a-403
(2), the municipality may determine the
comprehensiveness, extent, and format of the general plan.
Section 2. Section 
10-9a-403
 is amended to read:
10-9a-403.
General plan preparation.
(1) (a) The planning commission shall provide notice, as provided in Section
10-9a-203
, of the planning commission's intent to make a recommendation to the municipal
legislative body for a general plan or a comprehensive general plan amendment when the
planning commission initiates the process of preparing the planning commission's
recommendation.
(b) The planning commission shall make and recommend to the legislative body a
proposed general plan for the area within the municipality.
(c) The plan may include areas outside the boundaries of the municipality if, in the
planning commission's judgment, those areas are related to the planning of the municipality's
territory.
(d) Except as otherwise provided by law or with respect to a municipality's power of
eminent domain, when the plan of a municipality involves territory outside the boundaries of
the municipality, the municipality may not take action affecting that territory without the
concurrence of the county or other municipalities affected.
(2) (a) At a minimum, the proposed general plan, with the accompanying maps, charts,
and descriptive and explanatory matter, shall include the planning commission's
recommendations for the following plan elements:
(i) a land use element that:
(A) designates the long-term goals and the proposed extent, general distribution, and
location of land for housing for residents of various income levels, business, industry,
agriculture, recreation, education, public buildings and grounds, open space, and other
categories of public and private uses of land as appropriate;
(B) includes a statement of the projections for and standards of population density and
building intensity recommended for the various land use categories covered by the plan;
(C) except for a city of the fifth class or a town, is coordinated to integrate the land use
element with the water use and preservation element; and
(D) except for a city of the fifth class or a town, accounts for the effect of land use
categories and land uses on water demand;
(ii) a transportation and traffic circulation element that:
(A) provides the general location and extent of existing and proposed freeways, arterial
and collector streets, public transit, active transportation facilities, and other modes of
transportation that the planning commission considers appropriate;
(B) for a municipality that has access to a major transit investment corridor, addresses
the municipality's plan for residential and commercial development around major transit
investment corridors to maintain and improve the connections between housing, employment,
education, recreation, and commerce;
(C) for a municipality that does not have access to a major transit investment corridor,
addresses the municipality's plan for residential and commercial development in areas that will
maintain and improve the connections between housing, transportation, employment,
education, recreation, and commerce; and
(D) correlates with the population projections, the employment projections, and the
proposed land use element of the general plan;
(iii) [
for a specified municipality as defined in Section 
10-9a-408
,
] a moderate income
housing element that:
(A) provides a realistic opportunity to meet the need for additional moderate income
housing within 
the municipality during
 the next five years;
(B) [
selects
] 
for a town, may include a recommendation to implement
 three or more 
of
the
 moderate income housing strategies described in Subsection (2)(b)(iii) [
for implementation,
including one additional moderate income housing strategy as provided in Subsection (2)(b)(iv)
for a specified municipality that has a fixed guideway public transit station
];
(C) for a specified municipality, as defined in Section 
10-9a-408
, that does not have a
fixed guideway public transit station, shall include a recommendation to implement three or
more of the moderate income housing strategies described in Subsection (2)(b)(iii);
(D) for a specified municipality, as defined in Section 
10-9a-408
, that has a fixed
guideway public transit station, shall include a recommendation to implement five or more of
the moderate income housing strategies described in Subsection (2)(b)(iii), of which one shall
be the moderate income housing strategy described in Subsection (2)(b)(iii)(V), and one shall
be a moderate income housing strategy described in Subsection (2)(b)(iii)(G), (H), or (Q);
 and
[
(C)
] 
(E)
 [
includes
] 
for a specified municipality, as defined in Section 
10-9a-408
, shall
include
 an implementation plan as provided in Subsection (2)(c); and
(iv) except for a city of the fifth class or a town, a water use and preservation element
that addresses:
(A) the effect of permitted development or patterns of development on water demand
and water infrastructure;
(B) methods of reducing water demand and per capita consumption for future
development;
(C) methods of reducing water demand and per capita consumption for existing
development; and
(D) opportunities for the municipality to modify the municipality's operations to
eliminate practices or conditions that waste water.
(b) In drafting the moderate income housing element, the planning commission:
(i) shall consider the Legislature's determination that municipalities shall facilitate a
reasonable opportunity for a variety of housing, including moderate income housing:
(A) to meet the needs of people of various income levels living, working, or desiring to
live or work in the community; and
(B) to allow people with various incomes to benefit from and fully participate in all
aspects of neighborhood and community life;
(ii) for a town, may include, and for a specified municipality as defined in Section
10-9a-408
, shall include, an analysis of how the municipality will provide a realistic
opportunity for the development of moderate income housing within the next five years;
(iii) for a town, may include, and for [
other municipalities
] 
a specified municipality as
defined in Section 
10-9a-408
, shall include, a recommendation to implement [
three or more of
the following
] 
the required number of any of the following
 moderate income housing strategies
as specified in Subsection (2)(a)(iii)
:
(A) rezone for densities necessary to facilitate the production of moderate income
housing;
(B) demonstrate investment in the rehabilitation or expansion of infrastructure that
facilitates the construction of moderate income housing;
(C) demonstrate investment in the rehabilitation of existing uninhabitable housing
stock into moderate income housing;
(D) identify and utilize general fund subsidies or other sources of revenue to waive
construction related fees that are otherwise generally imposed by the municipality for the
construction or rehabilitation of moderate income housing;
(E) create or allow for, and reduce regulations related to, internal or detached accessory
dwelling units in residential zones;
(F) zone or rezone for higher density or moderate income residential development in
commercial or mixed-use zones near major transit investment corridors, commercial centers, or
employment centers;
(G) amend land use regulations to allow for higher density or new moderate income
residential development in commercial or mixed-use zones near major transit investment
corridors;
(H) amend land use regulations to eliminate or reduce parking requirements for
residential development where a resident is less likely to rely on the resident's own vehicle,
such as residential development near major transit investment corridors or senior living
facilities;
(I) amend land use regulations to allow for single room occupancy developments;
(J) implement zoning incentives for moderate income units in new developments;
(K) preserve existing and new moderate income housing and subsidized units by
utilizing a landlord incentive program, providing for deed restricted units through a grant
program, or, notwithstanding Section 
10-9a-535
, establishing a housing loss mitigation fund;
(L) reduce, waive, or eliminate impact fees related to moderate income housing;
(M) demonstrate creation of, or participation in, a community land trust program for
moderate income housing;
(N) implement a mortgage assistance program for employees of the municipality, an
employer that provides contracted services to the municipality, or any other public employer
that operates within the municipality;
(O) apply for or partner with an entity that applies for state or federal funds or tax
incentives to promote the construction of moderate income housing, an entity that applies for
programs offered by the Utah Housing Corporation within that agency's funding capacity, an
entity that applies for affordable housing programs administered by the Department of
Workforce Services, an entity that applies for affordable housing programs administered by an
association of governments established by an interlocal agreement under Title 11, Chapter 13,
Interlocal Cooperation Act, an entity that applies for services provided by a public housing
authority to preserve and create moderate income housing, or any other entity that applies for
programs or services that promote the construction or preservation of moderate income
housing;
(P) demonstrate utilization of a moderate income housing set aside from a community
reinvestment agency, redevelopment agency, or community development and renewal agency
to create or subsidize moderate income housing;
(Q) create a housing and transit reinvestment zone pursuant to Title 63N, Chapter 3,
Part 6, Housing and Transit Reinvestment Zone Act;
(R) eliminate impact fees for any accessory dwelling unit that is not an internal
accessory dwelling unit as defined in Section 
10-9a-530
;
(S) create a program to transfer development rights for moderate income housing;
(T) ratify a joint acquisition agreement with another local political subdivision for the
purpose of combining resources to acquire property for moderate income housing;
(U) develop a moderate income housing project for residents who are disabled or 55
years old or older;
(V) develop and adopt a station area plan in accordance with Section 
10-9a-403.1
;
(W) create or allow for, and reduce regulations related to, multifamily residential
dwellings compatible in scale and form with detached single-family residential dwellings and
located in walkable communities within residential or mixed-use zones; and
(X) demonstrate implementation of any other program or strategy to address the
housing needs of residents of the municipality who earn less than 80% of the area median
income, including the dedication of a local funding source to moderate income housing or the
adoption of a land use ordinance that requires 10% or more of new residential development in a
residential zone be dedicated to moderate income housing; and
[
(iv) in addition to the recommendations required under Subsection (2)(b)(iii), for a
municipality that has a fixed guideway public transit station, shall include a recommendation to
implement:
]
[
(A) the strategy described in Subsection (2)(b)(iii)(V); and
]
[
(B) a strategy described in Subsection (2)(b)(iii)(G), (H), or (Q).
]
(iv) shall identify each moderate income housing strategy recommended for
implementation by restating the exact language used to describe the strategy in Subsection
(2)(b)(iii).
(c) (i) In drafting the implementation plan portion of the moderate income housing
element as described in Subsection (2)(a)(iii)(C), the planning commission shall [
establish
]
recommend the establishment of
 a 
five-year
 timeline for implementing each of the moderate
income housing strategies selected by the municipality for implementation.
(ii) The timeline described in Subsection (2)(c)(i) shall:
(A) identify specific measures and benchmarks for implementing each moderate
income housing strategy selected by the municipality, whether one-time or ongoing; and
(B) provide flexibility for the municipality to make adjustments as needed.
(d) In drafting the land use element, the planning commission shall:
(i) identify and consider each agriculture protection area within the municipality;
(ii) avoid proposing a use of land within an agriculture protection area that is
inconsistent with or detrimental to the use of the land for agriculture; and
(iii) consider and coordinate with any station area plans adopted by the municipality if
required under Section 
10-9a-403.1
.
(e) In drafting the transportation and traffic circulation element, the planning
commission shall:
(i) (A) consider and coordinate with the regional transportation plan developed by the
municipality's region's metropolitan planning organization, if the municipality is within the
boundaries of a metropolitan planning organization; or
(B) consider and coordinate with the long-range transportation plan developed by the
Department of Transportation, if the municipality is not within the boundaries of a
metropolitan planning organization; and
(ii) consider and coordinate with any station area plans adopted by the municipality if
required under Section 
10-9a-403.1
.
(f) In drafting the water use and preservation element, the planning commission:
(i) shall consider:
(A) applicable regional water conservation goals recommended by the Division of
Water Resources; and
(B) if Section 
73-10-32
 requires the municipality to adopt a water conservation plan
pursuant to Section 
73-10-32
, the municipality's water conservation plan;
(ii) shall include a recommendation for:
(A) water conservation policies to be determined by the municipality; and
(B) landscaping options within a public street for current and future development that
do not require the use of lawn or turf in a parkstrip;
(iii) shall review the municipality's land use ordinances and include a recommendation
for changes to an ordinance that promotes the inefficient use of water;
(iv) shall consider principles of sustainable landscaping, including the:
(A) reduction or limitation of the use of lawn or turf;
(B) promotion of site-specific landscape design that decreases stormwater runoff or
runoff of water used for irrigation;
(C) preservation and use of healthy trees that have a reasonable water requirement or
are resistant to dry soil conditions;
(D) elimination or regulation of ponds, pools, and other features that promote
unnecessary water evaporation;
(E) reduction of yard waste; and
(F) use of an irrigation system, including drip irrigation, best adapted to provide the
optimal amount of water to the plants being irrigated;
(v) shall consult with the public water system or systems serving the municipality with
drinking water regarding how implementation of the land use element and water use and
preservation element may affect:
(A) water supply planning, including drinking water source and storage capacity
consistent with Section 
19-4-114
; and
(B) water distribution planning, including master plans, infrastructure asset
management programs and plans, infrastructure replacement plans, and impact fee facilities
plans;
(vi) may include recommendations for additional water demand reduction strategies,
including:
(A) creating a water budget associated with a particular type of development;
(B) adopting new or modified lot size, configuration, and landscaping standards that
will reduce water demand for new single family development;
(C) providing one or more water reduction incentives for existing development such as
modification of existing landscapes and irrigation systems and installation of water fixtures or
systems that minimize water demand;
(D) discouraging incentives for economic development activities that do not adequately
account for water use or do not include strategies for reducing water demand; and
(E) adopting water concurrency standards requiring that adequate water supplies and
facilities are or will be in place for new development; and
(vii) for a town, may include, and for another municipality, shall include, a
recommendation for low water use landscaping standards for a new:
(A) commercial, industrial, or institutional development;
(B) common interest community, as defined in Section 
57-25-102
; or
(C) multifamily housing project.
(3) The proposed general plan may include:
(a) an environmental element that addresses:
(i) the protection, conservation, development, and use of natural resources, including
the quality of:
(A) air;
(B) forests;
(C) soils;
(D) rivers;
(E) groundwater and other waters;
(F) harbors;
(G) fisheries;
(H) wildlife;
(I) minerals; and
(J) other natural resources; and
(ii) (A) the reclamation of land, flood control, prevention and control of the pollution
of streams and other waters;
(B) the regulation of the use of land on hillsides, stream channels and other
environmentally sensitive areas;
(C) the prevention, control, and correction of the erosion of soils;
(D) the preservation and enhancement of watersheds and wetlands; and
(E) the mapping of known geologic hazards;
(b) a public services and facilities element showing general plans for sewage, water,
waste disposal, drainage, public utilities, rights-of-way, easements, and facilities for them,
police and fire protection, and other public services;
(c) a rehabilitation, redevelopment, and conservation element consisting of plans and
programs for:
(i) historic preservation;
(ii) the diminution or elimination of a development impediment as defined in Section
17C-1-102
; and
(iii) redevelopment of land, including housing sites, business and industrial sites, and
public building sites;
(d) an economic element composed of appropriate studies and forecasts, as well as an
economic development plan, which may include review of existing and projected municipal
revenue and expenditures, revenue sources, identification of basic and secondary industry,
primary and secondary market areas, employment, and retail sales activity;
(e) recommendations for implementing all or any portion of the general plan, including
the adoption of land and water use ordinances, capital improvement plans, community
development and promotion, and any other appropriate action;
(f) provisions addressing any of the matters listed in Subsection 
10-9a-401
(2) or (3);
and
(g) any other element the municipality considers appropriate.
Section 3. Section 
10-9a-408
 is amended to read:
10-9a-408.
Moderate income housing report -- Contents -- Prioritization for
funds or projects -- Ineligibility for funds after noncompliance -- Civil actions.
(1) As used in this section:
(a) "Division" means the Housing and Community Development Division within the
Department of Workforce Services.
(b) "Implementation plan" means the implementation plan adopted as part of the
moderate income housing element of a specified municipality's general plan as provided in
Subsection 
10-9a-403
(2)(c).
(c) [
"Moderate income housing report" or "report"
] 
"Initial report" or "initial moderate
income housing report"
 means the 
one-time
 report described in Subsection [
(2)(a)
] 
(2)
.
(d) "Moderate income housing strategy" means a strategy described in Subsection
10-9a-403
(2)(b)(iii).
(e) "Report" means an initial report or a subsequent report.
[
(e)
] 
(f)
 "Specified municipality" means:
(i) a city of the first, second, third, or fourth class;
(ii) a city of the fifth class with a population of 5,000 or more, if the city is located
within a county of the first, second, or third class; or
(iii) a metro township with a population of 5,000 or more.
(g) "Subsequent report" or "subsequent moderate income housing report" means the
annual report described in Subsection (3).
(2) (a) [
Beginning in 2022, on or before October 1 of each calendar year, the
] 
The
legislative body of a specified municipality shall [
annually submit a written
] 
submit an initial
moderate income housing report to the division.
[
(b) The moderate income housing report submitted in 2022 shall include:
]
(b) If a municipality changes from one class to another or grows in population to
become a specified municipality, the municipality shall submit the initial report to the division
on or before August 1 of the year in which the municipality first becomes a specified
municipality.
(c) The initial report shall:
(i) [
a description of
] 
identify
 each moderate income housing strategy selected by the
specified municipality for 
continued, ongoing, or one-time
 implementation
, restating the exact
language used to describe the moderate income housing strategy in Subsection
10-9a-403
(2)(b)(iii)
; and
(ii) 
include
 an implementation plan.
[
(c)
] 
(3) (a)
 [
The
] 
After the division approves a specified municipality's initial report in
accordance with this section, the specified municipality shall annually submit to the division a
subsequent
 moderate income housing report [
submitted in each calendar year after 2022
] 
on or
before August 1 of each year after the year in which the specified municipality is required to
submit an initial report to the division.
(b) The subsequent report
 shall include:
(i) the information required [
under Subsection (2)(b)
] 
in the initial report
;
(ii) a description of each action, whether one-time or ongoing, taken by the specified
municipality during the previous fiscal year to implement the moderate income housing
strategies [
selected by the specified municipality
] 
identified in the initial report
 for
implementation;
(iii) a description of each land use regulation or land use decision made by the
specified municipality during the previous fiscal year to implement the moderate income
housing strategies, including an explanation of how the land use regulation or land use decision
supports the specified municipality's efforts to implement the moderate income housing
strategies;
(iv) a description of any barriers encountered by the specified municipality in the
previous fiscal year in implementing the moderate income housing strategies;
(v) information regarding the number of internal and external or detached accessory
dwelling units located within the specified municipality for which the specified municipality:
(A) issued a building permit to construct; or
(B) issued a business license 
or comparable license or permit
 to rent;
(vi) a description of how the market has responded to the selected moderate income
housing strategies, including the number of entitled moderate income housing units or other
relevant data; and
(vii) any recommendations on how the state can support the specified municipality in
implementing the moderate income housing strategies.
[
(d)
] 
(c)
 [
The moderate income housing
] 
A specified municipality's
 report shall be in a
form:
(i) approved by the division; and
(ii) made available by the division on or before [
July
] 
May
of the year in which the
report is required.
[
(3)
] 
(4)
 Within 90 days after the day on which the division receives a specified
municipality's [
moderate income housing
] report, the division shall:
(a) post the report on the division's website;
(b) send a copy of the report to the Department of Transportation, the Governor's
Office of Planning and Budget, the association of governments in which the specified
municipality is located, and, if the specified municipality is located within the boundaries of a
metropolitan planning organization, the appropriate metropolitan planning organization; and
(c) subject to Subsection [
(4)
] 
(5)
, review the report to determine compliance with
[
Subsection (2)
] 
this section
.
[
(4)
] 
(5)
 (a) [
The report described in Subsection (2)(b) complies with Subsection (2)
]
An initial report complies with this section
 if the report:
(i) includes the information required under Subsection [
(2)(b)
] 
(2)(c)
;
(ii) demonstrates to the division that the specified municipality made plans to
implement:
(A) three or more moderate income housing strategies if the specified municipality
does not have a fixed guideway public transit station; or
(B) subject to Subsection 
10-9a-403
(2)(b)(iv), five or more moderate income housing
strategies if the specified municipality has a fixed guideway public transit station; and
(iii) is in a form approved by the division.
(b) [
The report described in Subsection (2)(c) complies with Subsection (2)
] 
A
subsequent report complies with this section
 if the report:
(i) includes the information required under Subsection [
(2)(c)
] 
(3)(b)
;
(ii) demonstrates to the division that the specified municipality made plans to
implement:
(A) three or more moderate income housing strategies if the specified municipality
does not have a fixed guideway public transit station; or
(B) [
four
] 
subject to the requirements of Subsection 
10-9a-403
(2)(a)(iii)(D), five
 or
more moderate income housing strategies if the specified municipality has a fixed guideway
public transit station;
(iii) is in a form approved by the division; and
(iv) provides sufficient information for the division to:
(A) assess the specified municipality's progress in implementing the moderate income
housing strategies;
(B) monitor compliance with the specified municipality's implementation plan;
(C) identify a clear correlation between the specified municipality's land use
regulations and land use decisions and the specified municipality's efforts to implement the
moderate income housing strategies; [
and
]
(D) identify how the market has responded to the specified municipality's selected
moderate income housing strategies[
.
]
; and
(E) identify any barriers encountered by the specified municipality in implementing the
selected moderate income housing strategies.
[
(5)
] 
(6)
 (a) A specified municipality qualifies for priority consideration under this
Subsection [
(5)
] 
(6)
 if the specified municipality's [
moderate income housing
] report:
(i) complies with [
Subsection (2)
] 
this section
; and
(ii) demonstrates to the division that the specified municipality made plans to
implement:
(A) five or more moderate income housing strategies if the specified municipality does
not have a fixed guideway public transit station; or
(B) six or more moderate income housing strategies if the specified municipality has a
fixed guideway public transit station.
(b) The following apply to a specified municipality described in Subsection [
(5)(a)
]
(6)(a)
 during the fiscal year immediately following the fiscal year in which the report is
required:
(i) the Transportation Commission may give priority consideration to transportation
projects located within the boundaries of the specified municipality in accordance with
Subsection 
72-1-304
(3)(c); and
(ii) the Governor's Office of Planning and Budget may give priority consideration for
awarding financial grants to the specified municipality under the COVID-19 Local Assistance
Matching Grant Program in accordance with Subsection 
63J-4-802
(6).
(c) Upon determining that a specified municipality qualifies for priority consideration
under this Subsection [
(5)
] 
(6)
, the division shall send a notice of prioritization to the
legislative body of the specified municipality, the Department of Transportation, and the
Governor's Office of Planning and Budget.
(d) The notice described in Subsection [
(5)(c)
] 
(6)(c)
 shall:
(i) name the specified municipality that qualifies for priority consideration;
(ii) describe the funds or projects for which the specified municipality qualifies to
receive priority consideration;
(iii) specify the fiscal year during which the specified municipality qualifies for priority
consideration; and
(iv) state the basis for the division's determination that the specified municipality
qualifies for priority consideration.
[
(6)
] 
(7)
 (a) If the division, after reviewing a specified municipality's [
moderate income
housing
] report, determines that the report does not comply with [
Subsection (2)
] 
this section
,
the division shall send a notice of noncompliance to the legislative body of the specified
municipality.
(b) A specified municipality that receives a notice of noncompliance may:
(i) cure each deficiency in the report within 90 days after the day on which the notice of
noncompliance is sent; or
(ii) request an appeal of the division's determination of noncompliance within 10 days
after the day on which the notice of noncompliance is sent.
[
(b)
] 
(c)
 The notice described in Subsection [
(6)(a)
] 
(7)(a)
 shall:
(i) describe each deficiency in the report and the actions needed to cure each
deficiency;
(ii) state that the specified municipality has an opportunity to [
cure the deficiencies
]
:
(A) submit to the division a corrected report that cures each deficiency in the report
within 90 days after the day on which the notice 
of compliance
 is sent; [
and
] 
or
(B) submit to the division a request for an appeal of the division's determination of
noncompliance within 10 days after the day on which the notice of noncompliance is sent; and
(iii) state that failure to [
cure the deficiencies within 90 days after the day on which the
notice is sent
] 
take action under Subsection (7)(c)(ii)
 will result in 
the specified municipality's
ineligibility for funds under Subsection [
(7)
] 
(9)
.
(d) (i) If a specified municipality submits to the division a corrected report in
accordance with Subsection (7)(b)(i), and the division determines that the corrected report does
not comply with this section, the division shall send a second notice of noncompliance to the
legislative body of the specified municipality.
(ii) A specified municipality that receives a second notice of noncompliance may
submit to the division a request for an appeal of the division's determination of noncompliance
within 10 days after the day on which the second notice of noncompliance is sent.
(iii) The notice described in Subsection (7)(d)(i) shall:
(A) state that the specified municipality has an opportunity to submit to the division a
request for an appeal of the division's determination of noncompliance within 10 days after the
day on which the second notice of noncompliance is sent; and
(B) state that failure to take action under Subsection (7)(d)(iii)(A) will result in the
specified municipality's ineligibility for funds under Subsection (9).
(8) (a) A specified municipality that receives a notice of noncompliance under
Subsection (7)(a) or (7)(d)(i) may request an appeal of the division's determination of
noncompliance within 10 days after the day on which the notice of noncompliance is sent.
(b) Within 90 days after the day on which the division receives a request for an appeal,
an appeal board consisting of the following three members shall review and issue a written
decision on the appeal:
(i) one individual appointed by the Utah League of Cities and Towns;
(ii) one individual appointed by the Utah Homebuilders Association; and
(iii) one individual appointed by the presiding member of:
(A) the association of governments, established pursuant to an interlocal agreement
under Title 11, Chapter 13, Interlocal Cooperation Act, of which the specified municipality is a
member; or
(B) if the specified municipality is located within the boundaries of a metropolitan
planning organization, the applicable metropolitan planning organization.
(c) The written decision of the appeal board shall either uphold or reverse the division's
determination of noncompliance.
(d) The appeal board's written decision on the appeal is final.
[
(7)
] 
(9)
 (a) A specified municipality is ineligible for funds under this Subsection [
(7)
if the specified municipality
] 
(9) if
:
(i) 
the specified municipality
 fails to submit a [
moderate income housing
] report to the
division; [
or
]
(ii) [
fails to cure the deficiencies in the specified municipality's moderate income
housing report
] 
after submitting a report to the division, the division determines that the report
does not comply with this section and the specified municipality fails to:
(A) cure each deficiency in the report within 90 days after the day on which the notice
of noncompliance is sent; or
(B) request an appeal of the division's determination of noncompliance
 within [
] 
days after the day on which the [
division sent to the specified municipality a
] notice of
noncompliance [
under Subsection (6).
] 
is sent;
(iii) after submitting to the division a corrected report to cure the deficiencies in a
previously-submitted report, the division determines that the corrected report does not comply
with this section and the specified municipality fails to request an appeal of the division's
determination of noncompliance within 10 days after the day on which the second notice of
noncompliance is sent; or
(iv) after submitting a request for an appeal under Subsection (8), the appeal board
issues a written decision upholding the division's determination of noncompliance.
(b) The following apply to a specified municipality described in Subsection [
(7)(a)
]
(9)(a)
 during the fiscal year immediately following the fiscal year in which the report is
required:
(i) the executive director of the Department of Transportation may not program funds
from the Transportation Investment Fund of 2005, including the Transit Transportation
Investment Fund, to projects located within the boundaries of the specified municipality in
accordance with Subsection 
72-2-124
(5); and
(ii) the Governor's Office of Planning and Budget may not award financial grants to the
specified municipality under the COVID-19 Local Assistance Matching Grant Program in
accordance with Subsection 
63J-4-802
(7).
(c) Upon determining that a specified municipality is ineligible for funds under this
Subsection [
(7)
] 
(9)
, the division shall send a notice of ineligibility to the legislative body of
the specified municipality, the Department of Transportation, and the Governor's Office of
Planning and Budget.
(d) The notice described in Subsection [
(7)(c)
] 
(9)(c)
 shall:
(i) name the specified municipality that is ineligible for funds;
(ii) describe the funds for which the specified municipality is ineligible to receive;
(iii) specify the fiscal year during which the specified municipality is ineligible for
funds; and
(iv) state the basis for the division's determination that the specified municipality is
ineligible for funds.
[
(8)
] 
(10)
 In a civil action seeking enforcement or claiming a violation of this section
or of Subsection 
10-9a-404
(4)(c), a plaintiff may not recover damages but may be awarded
only injunctive or other equitable relief.
Section 4. Section 
17-27a-401
 is amended to read:
17-27a-401.
General plan required -- Content -- Resource management plan --
Provisions related to radioactive waste facility.
(1) To accomplish the purposes of this chapter, a county shall prepare and adopt a
comprehensive, long-range general plan:
(a) for present and future needs of the county;
(b) (i) for growth and development of all or any part of the land within the
unincorporated portions of the county; or
(ii) if a county has designated a mountainous planning district, for growth and
development of all or any part of the land within the mountainous planning district; and
(c) as a basis for communicating and coordinating with the federal government on land
and resource management issues.
(2) To promote health, safety, and welfare, the general plan may provide for:
(a) health, general welfare, safety, energy conservation, transportation, prosperity, civic
activities, aesthetics, and recreational, educational, and cultural opportunities;
(b) the reduction of the waste of physical, financial, or human resources that result
from either excessive congestion or excessive scattering of population;
(c) the efficient and economical use, conservation, and production of the supply of:
(i) food and water; and
(ii) drainage, sanitary, and other facilities and resources;
(d) the use of energy conservation and solar and renewable energy resources;
(e) the protection of urban development;
(f) the protection and promotion of air quality;
(g) historic preservation;
(h) identifying future uses of land that are likely to require an expansion or significant
modification of services or facilities provided by an affected entity; and
(i) an official map.
(3) (a) (i) The general plan of a specified county, as defined in Section 
17-27a-408
,
shall include a moderate income housing element that meets the requirements of Subsection
17-27a-403
(2)(a)(iii).
[
(ii) On or before October 1, 2022, a specified county, as defined in Section
17-27a-408
, with a general plan that does not comply with Subsection (3)(a)(i) shall amend the
general plan to comply with Subsection (3)(a)(i)
]
(ii) If a county changes from one class to another or grows in population to become a
specified county, as defined in Section 
17-27a-408
, the county shall amend the county's general
plan to comply with Subsection (3)(a)(i) on or before August 1 of the year in which the county
first becomes a specified county
.
(iii) A county described in Subsection (3)(a)(ii) shall send a copy of the county's
amended general plan to:
(A) the association of governments, established pursuant to an interlocal agreement
under Title 11, Chapter 13, Interlocal Cooperation Act, of which the county is a member; or
(B) if the county is located within the boundaries of a metropolitan planning
organization, the appropriate metropolitan planning organization.
(b) The general plan shall contain a resource management plan for the public lands, as
defined in Section 
63L-6-102
, within the county.
(c) The resource management plan described in Subsection (3)(b) shall address:
(i) mining;
(ii) land use;
(iii) livestock and grazing;
(iv) irrigation;
(v) agriculture;
(vi) fire management;
(vii) noxious weeds;
(viii) forest management;
(ix) water rights;
(x) ditches and canals;
(xi) water quality and hydrology;
(xii) flood plains and river terraces;
(xiii) wetlands;
(xiv) riparian areas;
(xv) predator control;
(xvi) wildlife;
(xvii) fisheries;
(xviii) recreation and tourism;
(xix) energy resources;
(xx) mineral resources;
(xxi) cultural, historical, geological, and paleontological resources;
(xxii) wilderness;
(xxiii) wild and scenic rivers;
(xxiv) threatened, endangered, and sensitive species;
(xxv) land access;
(xxvi) law enforcement;
(xxvii) economic considerations; and
(xxviii) air.
(d) For each item listed under Subsection (3)(c), a county's resource management plan
shall:
(i) establish findings pertaining to the item;
(ii) establish defined objectives; and
(iii) outline general policies and guidelines on how the objectives described in
Subsection (3)(d)(ii) are to be accomplished.
(4) (a) (i) The general plan shall include specific provisions related to an area within, or
partially within, the exterior boundaries of the county, or contiguous to the boundaries of a
county, which are proposed for the siting of a storage facility or transfer facility for the
placement of high-level nuclear waste or greater than class C radioactive nuclear waste, as
these wastes are defined in Section 
19-3-303
.
(ii) The provisions described in Subsection (4)(a)(i) shall address the effects of the
proposed site upon the health and general welfare of citizens of the state, and shall provide:
(A) the information identified in Section 
19-3-305
;
(B) information supported by credible studies that demonstrates that Subsection
19-3-307
(2) has been satisfied; and
(C) specific measures to mitigate the effects of high-level nuclear waste and greater
than class C radioactive waste and guarantee the health and safety of the citizens of the state.
(b) A county may, in lieu of complying with Subsection (4)(a), adopt an ordinance
indicating that all proposals for the siting of a storage facility or transfer facility for the
placement of high-level nuclear waste or greater than class C radioactive waste wholly or
partially within the county are rejected.
(c) A county may adopt the ordinance listed in Subsection (4)(b) at any time.
(d) The county shall send a certified copy of the ordinance described in Subsection
(4)(b) to the executive director of the Department of Environmental Quality by certified mail
within 30 days of enactment.
(e) If a county repeals an ordinance adopted under Subsection (4)(b) the county shall:
(i) comply with Subsection (4)(a) as soon as reasonably possible; and
(ii) send a certified copy of the repeal to the executive director of the Department of
Environmental Quality by certified mail within 30 days after the repeal.
(5) The general plan may define the county's local customs, local culture, and the
components necessary for the county's economic stability.
(6) Subject to Subsection 
17-27a-403
(2), the county may determine the
comprehensiveness, extent, and format of the general plan.
(7) If a county has designated a mountainous planning district, the general plan for the
mountainous planning district is the controlling plan.
(8) Nothing in this part may be construed to limit the authority of the state to manage
and protect wildlife under Title 23, Wildlife Resources Code of Utah.
(9) On or before December 31, 2025, a county that has a general plan that does not
include a water use and preservation element that complies with Section 
17-27a-403
 shall
amend the county's general plan to comply with Section 
17-27a-403
.
Section 5. Section 
17-27a-403
 is amended to read:
17-27a-403.
Plan preparation.
(1) (a) The planning commission shall provide notice, as provided in Section
17-27a-203
, of the planning commission's intent to make a recommendation to the county
legislative body for a general plan or a comprehensive general plan amendment when the
planning commission initiates the process of preparing the planning commission's
recommendation.
(b) The planning commission shall make and recommend to the legislative body a
proposed general plan for:
(i) the unincorporated area within the county; or
(ii) if the planning commission is a planning commission for a mountainous planning
district, the mountainous planning district.
(c) (i) The plan may include planning for incorporated areas if, in the planning
commission's judgment, they are related to the planning of the unincorporated territory or of
the county as a whole.
(ii) Elements of the county plan that address incorporated areas are not an official plan
or part of a municipal plan for any municipality, unless the county plan is recommended by the
municipal planning commission and adopted by the governing body of the municipality.
(2) (a) At a minimum, the proposed general plan, with the accompanying maps, charts,
and descriptive and explanatory matter, shall include the planning commission's
recommendations for the following plan elements:
(i) a land use element that:
(A) designates the long-term goals and the proposed extent, general distribution, and
location of land for housing for residents of various income levels, business, industry,
agriculture, recreation, education, public buildings and grounds, open space, and other
categories of public and private uses of land as appropriate;
(B) includes a statement of the projections for and standards of population density and
building intensity recommended for the various land use categories covered by the plan;
(C) is coordinated to integrate the land use element with the water use and preservation
element; and
(D) accounts for the effect of land use categories and land uses on water demand;
(ii) a transportation and traffic circulation element that:
(A) provides the general location and extent of existing and proposed freeways, arterial
and collector streets, public transit, active transportation facilities, and other modes of
transportation that the planning commission considers appropriate;
(B) addresses the county's plan for residential and commercial development around
major transit investment corridors to maintain and improve the connections between housing,
employment, education, recreation, and commerce; and
(C) correlates with the population projections, the employment projections, and the
proposed land use element of the general plan;
(iii) for a specified county as defined in Section 
17-27a-408
, a moderate income
housing element that:
(A) provides a realistic opportunity to meet the need for additional moderate income
housing within the next five years;
(B) selects three or more moderate income housing strategies described in Subsection
(2)(b)(ii) for implementation;
(C) includes an implementation plan as provided in Subsection (2)(e);
(iv) a resource management plan detailing the findings, objectives, and policies
required by Subsection 
17-27a-401
(3); and
(v) a water use and preservation element that addresses:
(A) the effect of permitted development or patterns of development on water demand
and water infrastructure;
(B) methods of reducing water demand and per capita consumption for future
development;
(C) methods of reducing water demand and per capita consumption for existing
development; and
(D) opportunities for the county to modify the county's operations to eliminate
practices or conditions that waste water.
(b) In drafting the moderate income housing element, the planning commission:
(i) shall consider the Legislature's determination that counties should facilitate a
reasonable opportunity for a variety of housing, including moderate income housing:
(A) to meet the needs of people of various income levels living, working, or desiring to
live or work in the community; and
(B) to allow people with various incomes to benefit from and fully participate in all
aspects of neighborhood and community life; and
(ii) shall include an analysis of how the county will provide a realistic opportunity for
the development of moderate income housing within the planning horizon, including a
recommendation to implement three or more of the following moderate income housing
strategies:
(A) rezone for densities necessary to facilitate the production of moderate income
housing;
(B) demonstrate investment in the rehabilitation or expansion of infrastructure that
facilitates the construction of moderate income housing;
(C) demonstrate investment in the rehabilitation of existing uninhabitable housing
stock into moderate income housing;
(D) identify and utilize county general fund subsidies or other sources of revenue to
waive construction related fees that are otherwise generally imposed by the county for the
construction or rehabilitation of moderate income housing;
(E) create or allow for, and reduce regulations related to, internal or detached accessory
dwelling units in residential zones;
(F) zone or rezone for higher density or moderate income residential development in
commercial or mixed-use zones, commercial centers, or employment centers;
(G) amend land use regulations to allow for higher density or new moderate income
residential development in commercial or mixed-use zones near major transit investment
corridors;
(H) amend land use regulations to eliminate or reduce parking requirements for
residential development where a resident is less likely to rely on the resident's own vehicle,
such as residential development near major transit investment corridors or senior living
facilities;
(I) amend land use regulations to allow for single room occupancy developments;
(J) implement zoning incentives for moderate income units in new developments;
(K) preserve existing and new moderate income housing and subsidized units by
utilizing a landlord incentive program, providing for deed restricted units through a grant
program, or establishing a housing loss mitigation fund;
(L) reduce, waive, or eliminate impact fees related to moderate income housing;
(M) demonstrate creation of, or participation in, a community land trust program for
moderate income housing;
(N) implement a mortgage assistance program for employees of the county, an
employer that provides contracted services for the county, or any other public employer that
operates within the county;
(O) apply for or partner with an entity that applies for state or federal funds or tax
incentives to promote the construction of moderate income housing, an entity that applies for
programs offered by the Utah Housing Corporation within that agency's funding capacity, an
entity that applies for affordable housing programs administered by the Department of
Workforce Services, an entity that applies for services provided by a public housing authority
to preserve and create moderate income housing, or any other entity that applies for programs
or services that promote the construction or preservation of moderate income housing;
(P) demonstrate utilization of a moderate income housing set aside from a community
reinvestment agency, redevelopment agency, or community development and renewal agency
to create or subsidize moderate income housing;
(Q) create a housing and transit reinvestment zone pursuant to Title 63N, Chapter 3,
Part 6, Housing and Transit Reinvestment Zone Act;
(R) eliminate impact fees for any accessory dwelling unit that is not an internal
accessory dwelling unit as defined in Section 
10-9a-530
;
(S) create a program to transfer development rights for moderate income housing;
(T) ratify a joint acquisition agreement with another local political subdivision for the
purpose of combining resources to acquire property for moderate income housing;
(U) develop a moderate income housing project for residents who are disabled or 55
years old or older;
(V) create or allow for, and reduce regulations related to, multifamily residential
dwellings compatible in scale and form with detached single-family residential dwellings and
located in walkable communities within residential or mixed-use zones; and
(W) demonstrate implementation of any other program or strategy to address the
housing needs of residents of the county who earn less than 80% of the area median income,
including the dedication of a local funding source to moderate income housing or the adoption
of a land use ordinance that requires 10% or more of new residential development in a
residential zone be dedicated to moderate income housing.
(iii) If a specified county, as defined in Section 
17-27a-408
, has created a small public
transit district, as defined in Section 
17B-2a-802
, on or before January 1, 2022, the specified
county shall include as part of the specified county's recommended strategies under Subsection
(2)(b)(ii) a recommendation to implement the strategy described in Subsection (2)(b)(ii)(Q).
(iv) The planning commission shall identify each moderate income housing strategy
recommended for implementation by restating the exact language used to describe the strategy
in Subsection (2)(b)(ii).
(c) In drafting the land use element, the planning commission shall:
(i) identify and consider each agriculture protection area within the unincorporated area
of the county or mountainous planning district;
(ii) avoid proposing a use of land within an agriculture protection area that is
inconsistent with or detrimental to the use of the land for agriculture; and
(iii) consider and coordinate with any station area plans adopted by municipalities
located within the county under Section 
10-9a-403.1
.
(d) In drafting the transportation and traffic circulation element, the planning
commission shall:
(i) (A) consider and coordinate with the regional transportation plan developed by the
county's region's metropolitan planning organization, if the relevant areas of the county are
within the boundaries of a metropolitan planning organization; or
(B) consider and coordinate with the long-range transportation plan developed by the
Department of Transportation, if the relevant areas of the county are not within the boundaries
of a metropolitan planning organization; and
(ii) consider and coordinate with any station area plans adopted by municipalities
located within the county under Section 
10-9a-403.1
.
(e) (i) In drafting the implementation plan portion of the moderate income housing
element as described in Subsection (2)(a)(iii)(C), the planning commission shall [
establish a
]
recommend the establishment of a five-year
 timeline for implementing each of the moderate
income housing strategies selected by the county for implementation.
(ii) The timeline described in Subsection (2)(e)(i) shall:
(A) identify specific measures and benchmarks for implementing each moderate
income housing strategy selected by the county; and
(B) provide flexibility for the county to make adjustments as needed.
(f) In drafting the water use and preservation element, the planning commission:
(i) shall consider applicable regional water conservation goals recommended by the
Division of Water Resources;
(ii) shall include a recommendation for:
(A) water conservation policies to be determined by the county; and
(B) landscaping options within a public street for current and future development that
do not require the use of lawn or turf in a parkstrip;
(iii) shall review the county's land use ordinances and include a recommendation for
changes to an ordinance that promotes the inefficient use of water;
(iv) shall consider principles of sustainable landscaping, including the:
(A) reduction or limitation of the use of lawn or turf;
(B) promotion of site-specific landscape design that decreases stormwater runoff or
runoff of water used for irrigation;
(C) preservation and use of healthy trees that have a reasonable water requirement or
are resistant to dry soil conditions;
(D) elimination or regulation of ponds, pools, and other features that promote
unnecessary water evaporation;
(E) reduction of yard waste; and
(F) use of an irrigation system, including drip irrigation, best adapted to provide the
optimal amount of water to the plants being irrigated;
(v) may include recommendations for additional water demand reduction strategies,
including:
(A) creating a water budget associated with a particular type of development;
(B) adopting new or modified lot size, configuration, and landscaping standards that
will reduce water demand for new single family development;
(C) providing one or more water reduction incentives for existing landscapes and
irrigation systems and installation of water fixtures or systems that minimize water demand;
(D) discouraging incentives for economic development activities that do not adequately
account for water use or do not include strategies for reducing water demand; and
(E) adopting water concurrency standards requiring that adequate water supplies and
facilities are or will be in place for new development; and
(vi) shall include a recommendation for low water use landscaping standards for a new:
(A) commercial, industrial, or institutional development;
(B) common interest community, as defined in Section 
57-25-102
; or
(C) multifamily housing project.
(3) The proposed general plan may include:
(a) an environmental element that addresses:
(i) to the extent not covered by the county's resource management plan, the protection,
conservation, development, and use of natural resources, including the quality of:
(A) air;
(B) forests;
(C) soils;
(D) rivers;
(E) groundwater and other waters;
(F) harbors;
(G) fisheries;
(H) wildlife;
(I) minerals; and
(J) other natural resources; and
(ii) (A) the reclamation of land, flood control, prevention and control of the pollution
of streams and other waters;
(B) the regulation of the use of land on hillsides, stream channels and other
environmentally sensitive areas;
(C) the prevention, control, and correction of the erosion of soils;
(D) the preservation and enhancement of watersheds and wetlands; and
(E) the mapping of known geologic hazards;
(b) a public services and facilities element showing general plans for sewage, water,
waste disposal, drainage, public utilities, rights-of-way, easements, and facilities for them,
police and fire protection, and other public services;
(c) a rehabilitation, redevelopment, and conservation element consisting of plans and
programs for:
(i) historic preservation;
(ii) the diminution or elimination of a development impediment as defined in Section
17C-1-102
; and
(iii) redevelopment of land, including housing sites, business and industrial sites, and
public building sites;
(d) an economic element composed of appropriate studies and forecasts, as well as an
economic development plan, which may include review of existing and projected county
revenue and expenditures, revenue sources, identification of basic and secondary industry,
primary and secondary market areas, employment, and retail sales activity;
(e) recommendations for implementing all or any portion of the general plan, including
the adoption of land and water use ordinances, capital improvement plans, community
development and promotion, and any other appropriate action;
(f) provisions addressing any of the matters listed in Subsection 
17-27a-401
(2) or
(3)(a)(i); and
(g) any other element the county considers appropriate.
Section 6. Section 
17-27a-408
 is amended to read:
17-27a-408.
Moderate income housing report -- Contents -- Prioritization for
funds or projects -- Ineligibility for funds after noncompliance -- Civil actions.
(1) As used in this section:
(a) "Division" means the Housing and Community Development Division within the
Department of Workforce Services.
(b) "Implementation plan" means the implementation plan adopted as part of the
moderate income housing element of a specified county's general plan as provided in
Subsection [
10-9a-403
(2)(c)
] 
17-27a-403
(2)(e)
.
(c) [
"Moderate income housing report" or "report"
] 
"Initial report" or "initial moderate
income housing report"
 means the 
one-time
 report described in Subsection [
(2)(a)
] 
(2)
.
(d) "Moderate income housing strategy" means a strategy described in Subsection
17-27a-403
(2)(b)(ii).
(e) "Report" means an initial report or a subsequent report.
[
(e)
] 
(f)
 "Specified county" means a county of the first, second, or third class, which
has a population of more than 5,000 in the county's unincorporated areas.
(g) "Subsequent report" or "subsequent moderate income housing report" means the
annual report described in Subsection (3).
(2) (a) [
Beginning in 2022, on or before October 1 of each calendar year, the
] 
The
legislative body of a specified county shall [
annually submit a written
] 
submit an initial
moderate income housing report to the division.
(b) If a county changes from one class to another or grows in population to become a
specified county, the county shall submit the initial report to the division on or before August 1
of the year in which the county first becomes a specified county.
[
(b) The moderate income housing report submitted in 2022 shall include:
]
(c) The initial report shall:
(i) [
a description of
] 
identify
 each moderate income housing strategy selected by the
specified county for 
continued, ongoing, or one-time
 implementation
, using the exact language
used to describe the moderate income housing strategy in Subsection 
17-27a-403
(2)(b)(ii)
; and
(ii) 
include
 an implementation plan.
[
(c)
] 
(3) (a)
 [
The
] 
After the division approves a specified county's initial report in
accordance with this section, the specified county shall annually submit to the division a
subsequent
 moderate income housing report [
submitted in each calendar year after 2022
] 
on or
before August 1 of each year after the year in which the specified county is required to submit
an initial report to the division.
(b) The subsequent report
 shall include:
(i) the information required [
under Subsection (2)(b)
] 
in the initial report
;
(ii) a description of each action, whether one-time or ongoing, taken by the specified
county during the previous fiscal year to implement the moderate income housing strategies
[
selected by the specified county
] 
identified in the initial report
 for implementation;
(iii) a description of each land use regulation or land use decision made by the
specified county during the previous fiscal year to implement the moderate income housing
strategies, including an explanation of how the land use regulation or land use decision
supports the specified county's efforts to implement the moderate income housing strategies;
(iv) a description of any barriers encountered by the specified county in the previous
fiscal year in implementing the moderate income housing strategies; and
(v) information regarding the number of internal and external or detached accessory
dwelling units located within the specified county for which the specified county:
(A) issued a building permit to construct; or
(B) issued a business license 
or comparable license or permit
 to rent;
(vi) a description of how the market has responded to the selected moderate income
housing strategies, including the number of entitled moderate income housing units or other
relevant data; and
(vii) any recommendations on how the state can support the specified county in
implementing the moderate income housing strategies.
[
(d)
] 
(c)
 [
The moderate income housing
] 
A specified county's
 report shall be in a form:
(i) approved by the division; and
(ii) made available by the division on or before [
July
] 
May
of the year in which the
report is required.
[
(3)
] 
(4)
 Within 90 days after the day on which the division receives a specified
county's [
moderate income housing
] report, the division shall:
(a) post the report on the division's website;
(b) send a copy of the report to the Department of Transportation, the Governor's
Office of Planning and Budget, the association of governments in which the specified county is
located, and, if the unincorporated area of the specified county is located within the boundaries
of a metropolitan planning organization, the appropriate metropolitan planning organization;
and
(c) subject to Subsection [
(4)
] 
(5)
, review the report to determine compliance with
[
Subsection (2)
] 
this section
.
[
(4)
] 
(5)
 (a) [
The report described in Subsection (2)(b) complies with Subsection (2)
]
An initial report complies with this section
 if the report:
(i) includes the information required under Subsection [
(2)(b)
] 
(2)(c)
;
(ii) demonstrates to the division that the specified county made plans to implement
three or more moderate income housing strategies; and
(iii) is in a form approved by the division.
(b) [
The report described in Subsection (2)(c) complies with Subsection (2)
] 
A
subsequent report complies with this section
 if the report:
(i) includes the information required under Subsection [
(2)(c)
] 
(3)(b)
;
(ii) demonstrates to the division that the specified county made plans to implement
three or more moderate income housing strategies;
(iii) is in a form approved by the division; and
(iv) provides sufficient information for the division to:
(A) assess the specified county's progress in implementing the moderate income
housing strategies;
(B) monitor compliance with the specified county's implementation plan;
(C) identify a clear correlation between the specified county's land use decisions and
efforts to implement the moderate income housing strategies; [
and
]
(D) identify how the market has responded to the specified county's selected moderate
income housing strategies[
.
]
; and
(E) identify any barriers encountered by the specified county in implementing the
selected moderate income housing strategies.
[
(5)
] 
(6)
 (a) A specified county qualifies for priority consideration under this
Subsection [
(5)
] 
(6)
 if the specified county's [
moderate income housing
] report:
(i) complies with [
Subsection (2)
] 
this section
; and
(ii) demonstrates to the division that the specified county made plans to implement five
or more moderate income housing strategies.
(b) The following apply to a specified county described in Subsection [
(5)(a)
] 
(6)(a)
during the fiscal year immediately following the fiscal year in which the report is required:
(i) the Transportation Commission may give priority consideration to transportation
projects located within the unincorporated areas of the specified county in accordance with
Subsection 
72-1-304
(3)(c); and
(ii) the Governor's Office of Planning and Budget may give priority consideration for
awarding financial grants to the specified county under the COVID-19 Local Assistance
Matching Grant Program in accordance with Subsection 
63J-4-802
(6).
(c) Upon determining that a specified county qualifies for priority consideration under
this Subsection [
(5)
] 
(6)
, the division shall send a notice of prioritization to the legislative body
of the specified county, the Department of Transportation, and the Governor's Office of
Planning and Budget.
(d) The notice described in Subsection [
(5)(c)
] 
(6)(c)
 shall:
(i) name the specified county that qualifies for priority consideration;
(ii) describe the funds or projects for which the specified county qualifies to receive
priority consideration;
(iii) specify the fiscal year during which the specified county qualifies for priority
consideration; and
(iv) state the basis for the division's determination that the specified county qualifies
for priority consideration.
[
(6)
] 
(7)
 (a) If the division, after reviewing a specified county's [
moderate income
housing
] report, determines that the report does not comply with [
Subsection (2)
] 
this section
,
the division shall send a notice of noncompliance to the legislative body of the specified
county.
(b) A specified county that receives a notice of noncompliance may:
(i) cure each deficiency in the report within 90 days after the day on which the notice of
noncompliance is sent; or
(ii) request an appeal of the division's determination of noncompliance within 10 days
after the day on which the notice of noncompliance is sent.
[
(b)
] 
(c)
 The notice described in Subsection [
(6)(a)
] 
(7)(a)
 shall:
(i) describe each deficiency in the report and the actions needed to cure each
deficiency;
(ii) state that the specified county has an opportunity to [
cure the deficiencies
]
:
(A) submit to the division a corrected report that cures each deficiency in the report
within 90 days after the day on which the notice 
of noncompliance
 is sent; [
and
] 
or
(B) submit to the division a request for an appeal of the division's determination of
noncompliance within 10 days after the day on which the notice of noncompliance is sent; and
(iii) state that failure to [
cure the deficiencies within 90 days after the day on which the
notice is sent
] 
take action under Subsection (7)(c)(ii)
 will result in 
the specified county's
ineligibility for funds under Subsection [
(7)
] 
(9)
.
(d) (i) If a specified county submits to the division a corrected report in accordance
with Subsection (7)(b)(i), and the division determines that the corrected report does not comply
with this section, the division shall send a second notice of noncompliance to the legislative
body of the specified county.
(ii) A specified county that receives a second notice of noncompliance may request an
appeal of the division's determination of noncompliance within 10 days after the day on which
the second notice of noncompliance is sent.
(iii) The notice described in Subsection (7)(d)(i) shall:
(A) state that the specified county has an opportunity to submit to the division a request
for an appeal of the division's determination of noncompliance within 10 days after the day on
which the second notice of noncompliance is sent; and
(B) state that failure to take action under Subsection (7)(d)(iii)(A) will result in the
specified county's ineligibility for funds under Subsection (9).
(8) (a) A specified county that receives a notice of noncompliance under Subsection
(7)(a) or (7)(d)(i) may request an appeal of the division's determination of noncompliance
within 10 days after the day on which the notice of noncompliance is sent.
(b) Within 90 days after the day on which the division receives a request for an appeal,
an appeal board consisting of the following three members shall review and issue a written
decision on the appeal:
(i) one individual appointed by the Utah Association of Counties;
(ii) one individual appointed by the Utah Homebuilders Association; and
(iii) one individual appointed by the presiding member of:
(A) the association of governments, established pursuant to an interlocal agreement
under Title 11, Chapter 13, Interlocal Cooperation Act, of which the specified county is a
member; or
(B) if the specified county is located within the boundaries of a metropolitan planning
organization, the applicable metropolitan planning organization.
(c) The written decision of the appeal board shall either uphold or reverse the division's
determination of noncompliance.
(d) The appeal board's written decision on the appeal is final.
[
(7)
] 
(9)
 (a) A specified county is ineligible for funds under this Subsection [
(7) if the
specified county
] 
(9) if
:
(i) 
the specified county
 fails to submit a [
moderate income housing
] report to the
division; [
or
]
(ii) [
fails to cure the deficiencies in the specified county's moderate income housing
report
] 
after submitting a report to the division, the division determines that the report does not
comply with this section and the specified county fails to:
(A) cure each deficiency in the report
 within 90 days after the day on which the
[
division sent to the specified county a
] notice of noncompliance [
under Subsection (6)
] 
is sent;
or
(B) request an appeal of the division's determination of noncompliance within 10 days
after the day on which the notice of noncompliance is sent;
(iii) after submitting to the division a corrected report to cure the deficiencies in a
previously-submitted report, the division determines that the corrected report does not comply
with this section and the specified county fails to request an appeal of the division's
determination of noncompliance within 10 days after the day on which the second notice of
noncompliance is sent; or
(iv) after submitting a request for an appeal under Subsection (8), the appeal board
issues a written decision upholding the division's determination of noncompliance
.
(b) The following apply to a specified county described in Subsection [
(7)(a)
] 
(9)(a)
during the fiscal year immediately following the fiscal year in which the report is required:
(i) the executive director of the Department of Transportation may not program funds
from the Transportation Investment Fund of 2005, including the Transit Transportation
Investment Fund, to projects located within the unincorporated areas of the specified county in
accordance with Subsection 
72-2-124
(6); and
(ii) the Governor's Office of Planning and Budget may not award financial grants to the
specified county under the COVID-19 Local Assistance Matching Grant Program in
accordance with Subsection 
63J-4-802
(7).
(c) Upon determining that a specified county is ineligible for funds under this
Subsection [
(7)
] 
(9)
, the division shall send a notice of ineligibility to the legislative body of
the specified county, the Department of Transportation, and the Governor's Office of Planning
and Budget.
(d) The notice described in Subsection [
(7)(c)
] 
(9)(c)
 shall:
(i) name the specified county that is ineligible for funds;
(ii) describe the funds for which the specified county is ineligible to receive;
(iii) specify the fiscal year during which the specified county is ineligible for funds;
and
(iv) state the basis for the division's determination that the specified county is ineligible
for funds.
[
(8)
] 
(10)
 In a civil action seeking enforcement or claiming a violation of this section
or of Subsection 
17-27a-404
(5)(c), a plaintiff may not recover damages but may be awarded
only injunctive or other equitable relief.
Section 7. Section 
35A-8-2401
 is enacted to read:
Part 24. Miscellaneous
 35A-8-2401.
Accounting for expenditures authorized by the Utah Housing
Preservation Fund.
(1) This section applies to funds appropriated by the Legislature to the department for
pass-through to the Utah Housing Preservation Fund.
(2) The department shall include in the annual written report described in Section
35A-1-109
 a report accounting for the expenditures authorized by the Utah Housing
Preservation Fund.
Section 8. Section 
35A-16-701
 is enacted to read:
Part 7. Housing Support Grant Program
 35A-16-701.
Housing Support Grant Program created.
(1) There is created the Housing Support Grant Program administered by the office.
(2) Subject to appropriations from the Legislature, the office shall distribute money to
fund one or more projects that:
(a) include affordable housing units for households whose income is no more than 30%
of the area median income for households of the same size in the county or municipality in
which the project is located; and
(b) have been approved by the homelessness council.
(3) The office shall:
(a) administer the grant program, including:
(i) reviewing grant applications and making recommendations to the homelessness
council; and
(ii) distributing grant money to approved grant recipients; and
(b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
make rules to administer the program, including:
(i) grant application requirements;
(ii) procedures to approve a grant; and
(iii) procedures for distributing money to grant recipients.
(4) When reviewing an application for approval, the homelessness council shall
consider:
(a) an applicant's rental income plan;
(b) proposed case management and service plans for households;
(c) any matching funds proposed by an applicant;
(d) proposed restrictions, including deed restrictions, and the duration of restrictions on
housing units to facilitate long-term assistance to households; and
(e) any other considerations as adopted by the council.
(5) On or before October 1, the coordinator, in cooperation with the homelessness
council, shall submit an annual report electronically to the Social Services Appropriations
Subcommittee that gives a complete account of the office's disbursement of funds under this
section.
Section 9. Section 
59-7-607
 is amended to read:
59-7-607.
Utah low-income housing tax credit.
(1) As used in this section:
(a) "Allocation certificate" means a certificate in a form prescribed by the commission
and issued by the Utah Housing Corporation to a housing sponsor that specifies the aggregate
amount of the tax credit awarded under this section to a qualified development and includes:
(i) the aggregate annual amount of the tax credit awarded that may be claimed by one
or more qualified taxpayers that have been issued a special low-income housing tax credit
certificate; and
(ii) the credit period over which the tax credit may be claimed by one or more qualified
taxpayers that have been issued a special low-income housing tax credit certificate.
(b) "Building" means a qualified low-income building as defined in Section 42(c),
Internal Revenue Code.
(c) "Credit period" means the "credit period" as defined in Section 42(f)(1), Internal
Revenue Code.
(d) (i) "Designated reporter" means, as selected by a housing sponsor, the housing
sponsor itself or one of the housing sponsor's direct or indirect partners, members, or
shareholders that will provide information to the Utah Housing Corporation regarding the
assignment of tax credits under this section.
(ii) Before the Utah Housing Corporation may issue an allocation certificate to a
housing sponsor, a housing sponsor shall provide the identity of the housing sponsor's
designated reporter to the Utah Housing Corporation.
(iii) Before the Utah Housing Corporation may issue a special low-income housing tax
credit certificate to a qualified taxpayer, a designated reporter shall provide the information
described in Subsection (6) to the Utah Housing Corporation.
(e) "Federal low-income housing tax credit" means the federal tax credit described in
Section 42, Internal Revenue Code.
(f) "Housing sponsor" means an entity that owns a qualified development.
(g) "Qualified allocation plan" means a qualified allocation plan adopted by the Utah
Housing Corporation in accordance with Section 42(m), Internal Revenue Code.
(h) "Qualified development" means a "qualified low-income housing project":
(i) as defined in Section 42(g)(1), Internal Revenue Code; and
(ii) that is located in the state.
(i) (i) "Qualified taxpayer" means a person that:
(A) owns a direct or indirect interest in a qualified development; and
(B) meets the requirements to claim a tax credit under this section.
(ii) If a housing sponsor is a partnership, limited liability company, or S corporation, a
"qualified taxpayer" may include any partner, member, or shareholder of the housing sponsor
as determined by the governing documents of the housing sponsor.
(j) (i) "Special low-income housing tax credit certificate" means a certificate:
(A) in a form prescribed by the commission;
(B) that the Utah Housing Corporation issues to a qualified taxpayer for a taxable year
in accordance with this section; and
(C) that specifies the amount of the tax credit a qualified taxpayer may claim under this
section.
(ii) The Utah Housing Corporation may only issue one or more special low-income
housing tax credit certificates if the aggregate specified amount on all special low-income
housing tax credit certificates issued in relation to a qualified development does not exceed the
aggregate amount of tax credit awarded to the qualified development and issued to a housing
sponsor in an allocation certificate.
(2) (a) For taxable years beginning on or after January 1, 1995, a qualified taxpayer
who has been issued a special low-income housing tax credit certificate by the Utah Housing
Corporation may claim a nonrefundable tax credit against taxes otherwise due under this
chapter, Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay
Corporate Franchise or Income Tax Act, or Chapter 9, Taxation of Admitted Insurers.
(b) The tax credit shall be in an amount equal to the tax credit amount specified on the
special low-income housing tax credit certificate that the Utah Housing Corporation issues to a
qualified taxpayer under this section.
(c) (i) For a calendar year beginning on or before December 31, [
] 
, the
aggregate annual tax credit that the Utah Housing Corporation may allocate for the credit
period described in Section 42(f), Internal Revenue Code, pursuant to this section and Section
59-10-1010
 is an amount equal to the product of:
(A) [
12.5
] 
34.5
 cents; and
(B) the population of Utah.
(ii) For a calendar year beginning on or after January 1, [
] 
, the aggregate
annual tax credit that the Utah Housing Corporation may allocate for the credit period
described in Section 42(f), Internal Revenue Code, pursuant to this section and Section
59-10-1010
 is [
an amount equal to the product of:
] 
$10,000,000.
[
(A) 34.5 cents; and
]
[
(B) the population of Utah.
]
(iii) For purposes of this section, the population of Utah shall be determined in
accordance with Section 146(j), Internal Revenue Code.
(3) (a) The Utah Housing Corporation shall determine criteria and procedures for
allocating the tax credit under this section and Section 
59-10-1010
 and incorporate the criteria
and procedures into the Utah Housing Corporation's qualified allocation plan.
(b) The Utah Housing Corporation shall create the criteria under Subsection (3)(a)
based on:
(i) the number of affordable housing units to be created in Utah for low and moderate
income persons in a qualified development;
(ii) the level of area median income being served by a qualified development;
(iii) the need for the tax credit for the economic feasibility of a qualified development;
and
(iv) the extended period for which a qualified development commits to remain as
affordable housing.
(4) Any housing sponsor may apply to the Utah Housing Corporation for a tax credit
allocation under this section.
(5) (a) The Utah Housing Corporation shall determine the amount of the tax credit to
allocate to a qualified development in accordance with the qualified allocation plan of the Utah
Housing Corporation.
(b) (i) The Utah Housing Corporation shall issue an allocation certificate to a housing
sponsor as evidence of the allocation.
(ii) The allocation certificate under Subsection (5)(b)(i) shall specify the amount of the
tax credit allocated to a qualified development as determined by the Utah Housing Corporation.
(c) The amount of the tax credit specified in an allocation certificate may not exceed
100% of the federal low-income housing tax credit awarded to a qualified development.
(6) Before the Utah Housing Corporation may issue a special low-income housing tax
credit certificate, a designated reporter shall provide to the Utah Housing Corporation in a form
prescribed by the Utah Housing Corporation:
(a) a list of each qualified taxpayer that has been assigned a portion of the tax credit
awarded in an allocation certificate;
(b) for each qualified taxpayer described in Subsection (6)(a), the amount of tax credit
that has been assigned; and
(c) an aggregate list of the tax credit amount assigned related to a qualified
development demonstrating that the aggregate annual amount of the tax credits assigned does
not exceed the aggregate annual tax credit awarded in the allocation certificate.
(7) The Utah Housing Corporation shall provide a special low-income housing tax
credit certificate to a qualified taxpayer if:
(a) a designated reporter has provided the information regarding the qualified taxpayer
as described in Subsection (6); and
(b) the Utah Housing Corporation has verified that the aggregate tax credit amount
assigned with respect to a qualified development does not exceed the total tax credit awarded
in the allocation certificate.
(8) (a) All elections made by a housing sponsor pursuant to Section 42, Internal
Revenue Code, shall apply to this section.
(b) (i) If a qualified development is required to recapture a portion of any federal
low-income housing tax credit, then each qualified taxpayer shall also be required to recapture
a portion of any state tax credits authorized by this section.
(ii) The state recapture amount shall be equal to the percentage of the state tax credit
that equals the proportion the federal recapture amount bears to the original federal low-income
housing tax credit amount subject to recapture.
(iii) The designated reporter shall identify each qualified taxpayer that is required to
recapture a portion of any state tax credit as described in this Subsection (8)(b).
(9) (a) Any tax credits returned to the Utah Housing Corporation in any year may be
reallocated within the same time period as provided in Section 42, Internal Revenue Code.
(b) Tax credits that are unallocated by the Utah Housing Corporation in any year may
be carried over for allocation in subsequent years.
(10) (a) If a tax credit is not claimed by a qualified taxpayer in the year in which it is
earned because the tax credit is more than the tax owed by the qualified taxpayer, the tax credit
may be carried back three years or may be carried forward five years as a credit against the tax.
(b) Carryover tax credits under Subsection (10)(a) shall be applied against the tax:
(i) before the application of the tax credits earned in the current year; and
(ii) on a first-earned first-used basis.
(11) (a) A qualified taxpayer may assign a special low-income housing tax credit
certificate received under Subsection (7) to another person if the qualified taxpayer provides
written notice to the Utah Housing Corporation, in a form established by the Utah Housing
Corporation, that includes:
(i) the qualified taxpayer's written certification or other proof that the qualified
taxpayer irrevocably elects not to claim the tax credit authorized by the special low-income
housing tax credit certificate; and
(ii) contact information for the person to whom the special low-income housing tax
credit certificate is to be assigned.
(b) If the qualified taxpayer meets the requirements of Subsection (11)(a), the Utah
Housing Corporation shall issue an assigned special low-income housing tax credit certificate
to the person identified by the qualified taxpayer for an amount equal to the qualified taxpayer's
special low-income housing tax credit minus any state recapture amount under Subsection
(8)(b).
(c) A person who is assigned a special low-income housing tax credit certificate in
accordance with this Subsection (11) may claim the tax credit as if:
(i) the person had met the requirements of this section to claim the tax credit, if the
person files a return under this chapter, Chapter 8, Gross Receipts Tax on Certain Corporations
Not Required to Pay Corporate Franchise or Income Tax Act, or Chapter 9, Taxation of
Admitted Insurers; or
(ii) the person had met the requirements of Section 
59-10-1010
 to claim the tax credit
under Section 
59-10-1010
, if the person files a return under Chapter 10, Individual Income Tax
Act.
(12) Any tax credit taken in this section may be subject to an annual audit by the
commission.
(13) The Utah Housing Corporation shall annually provide an electronic report to the
Revenue and Taxation Interim Committee which shall include at least:
(a) the purpose and effectiveness of the tax credits; [
and
]
(b) the Utah Housing Corporation's recommendations as to whether the Legislature
should continue, modify, or repeal the aggregate annual tax credit amount that the Utah
Housing Corporation is authorized to allocate under Subsection (2)(c)(ii); and
[
(b)
] 
(c)
 the benefits of the tax credits to the state.
(14) The commission may, in consultation with the Utah Housing Corporation, make
rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to
implement this section.
(15) (a) In calendar years 2026 and 2029, the Revenue and Taxation Interim
Committee shall conduct a review of the aggregate annual tax credit amount that the Utah
Housing Corporation is authorized to allocate under Subsection (2)(c)(ii).
(b) In a review under this Subsection (15), the Revenue and Taxation Interim
Committee shall:
(i) study the Utah Housing Corporation's recommendations under Subsection (13)(b);
and
(ii) if the Revenue and Taxation Interim Committee decides to recommend legislative
action to the Legislature, prepare legislation for consideration by the Legislature in the next
general session.
Section 10. Section 
59-10-1010
 is amended to read:
59-10-1010.
Utah low-income housing tax credit.
(1) As used in this section:
(a) "Allocation certificate" means a certificate in a form prescribed by the commission
and issued by the Utah Housing Corporation to a housing sponsor that specifies the aggregate
amount of the tax credit awarded under this section to a qualified development and includes:
(i) the aggregate annual amount of the tax credit awarded that may be claimed by one
or more qualified taxpayers that have been issued a special low-income housing tax credit
certificate; and
(ii) the credit period over which the tax credit may be claimed by one or more qualified
taxpayers that have been issued a special low-income housing tax credit certificate.
(b) "Building" means a qualified low-income building as defined in Section 42(c),
Internal Revenue Code.
(c) "Credit period" means the "credit period" as defined in Section 42(f)(1), Internal
Revenue Code.
(d) (i) "Designated reporter" means, as selected by a housing sponsor, the housing
sponsor itself or one of the housing sponsor's direct or indirect partners, members, or
shareholders that will provide information to the Utah Housing Corporation regarding the
assignment of tax credits under this section.
(ii) Before the Utah Housing Corporation may issue an allocation certificate to a
housing sponsor, a housing sponsor shall provide the identity of the housing sponsor's
designated reporter to the Utah Housing Corporation.
(iii) Before the Utah Housing Corporation may issue a special low-income housing tax
credit certificate to a qualified taxpayer, a designated reporter shall provide the information
described in Subsection (6) to the Utah Housing Corporation.
(e) "Federal low-income housing credit" means the federal low-income housing credit
described in Section 42, Internal Revenue Code.
(f) "Housing sponsor" means an entity that owns a qualified development.
(g) "Qualified allocation plan" means a qualified allocation plan adopted by the Utah
Housing Corporation in accordance with Section 42(m), Internal Revenue Code.
(h) "Qualified development" means a "qualified low-income housing project":
(i) as defined in Section 42(g)(1), Internal Revenue Code; and
(ii) that is located in the state.
(i) (i) "Qualified taxpayer" means a claimant, estate, or trust that:
(A) owns a direct or indirect interest in a qualified development; and
(B) meets the requirements to claim a tax credit under this section.
(ii) If a housing sponsor is a partnership, limited liability company, or S corporation, a
"qualified taxpayer" may include any partner, member, or shareholder of the housing sponsor
as determined by the governing documents of the housing sponsor.
(j) (i) "Special low-income housing tax credit certificate" means a certificate:
(A) in a form prescribed by the commission;
(B) that the Utah Housing Corporation issues to a qualified taxpayer for a taxable year
in accordance with this section; and
(C) that specifies the amount of the tax credit a qualified taxpayer may claim under this
section.
(ii) The Utah Housing Corporation may only issue one or more special low-income
housing tax credit certificates if the aggregate specified amount on all special low-income
housing tax credit certificates issued in relation to a qualified development does not exceed the
aggregate amount of tax credit awarded to a qualified development and issued to a housing
sponsor in an allocation certificate.
(2) (a) For taxable years beginning on or after January 1, 1995, a qualified taxpayer
who has been issued a special low-income housing tax credit certificate by the Utah Housing
Corporation may claim a nonrefundable tax credit against taxes otherwise due under this
chapter.
(b) The tax credit shall be in an amount equal to the tax credit amount specified on the
special low-income housing tax credit certificate that the Utah Housing Corporation issues to a
qualified taxpayer under this section.
(c) (i) For a calendar year beginning on or before December 31, [
] 
, the
aggregate annual tax credit that the Utah Housing Corporation may allocate for the credit
period described in Section 42(f), Internal Revenue Code, pursuant to this section and Section
59-7-607
 is an amount equal to the product of:
(A) [
12.5
] 
34.5
 cents; and
(B) the population of Utah.
(ii) For a calendar year beginning on or after January 1, [
] 
, the aggregate
annual tax credit that the Utah Housing Corporation may allocate for the credit period
described in Section 42(f), Internal Revenue Code, pursuant to this section and Section
59-7-607
 is [
an amount equal to the product of:
] 
$10,000,000.
[
(A) 34.5 cents; and
]
[
(B) the population of Utah.
]
(iii) For purposes of this section, the population of Utah shall be determined in
accordance with Section 146(j), Internal Revenue Code.
(3) (a) The Utah Housing Corporation shall determine criteria and procedures for
allocating the tax credit under this section and Section 
59-7-607
 and incorporate the criteria
and procedures into the Utah Housing Corporation's qualified allocation plan.
(b) The Utah Housing Corporation shall create the criteria under Subsection (3)(a)
based on:
(i) the number of affordable housing units to be created in Utah for low and moderate
income persons in a qualified development;
(ii) the level of area median income being served by a qualified development;
(iii) the need for the tax credit for the economic feasibility of a qualified development;
and
(iv) the extended period for which a qualified development commits to remain as
affordable housing.
(4) Any housing sponsor may apply to the Utah Housing Corporation for a tax credit
allocation under this section.
(5) (a) The Utah Housing Corporation shall determine the amount of the tax credit to
allocate to a qualified development in accordance with the qualified allocation plan of the Utah
Housing Corporation.
(b) (i) The Utah Housing Corporation shall issue an allocation certificate to a housing
sponsor as evidence of the allocation.
(ii) The allocation certificate under Subsection (5)(b)(i) shall specify the amount of the
tax credit allocated to a qualified development as determined by the Utah Housing Corporation.
(c) The amount of the tax credit specified in an allocation certificate may not exceed
100% of the federal low-income housing credit awarded to a qualified development.
(6) Before the Utah Housing Corporation may issue a special low-income housing tax
credit certificate, a designated reporter shall provide to the Utah Housing Corporation in a form
prescribed by the Utah Housing Corporation:
(a) a list of each qualified taxpayer that has been assigned a portion of the tax credit
awarded in an allocation certificate;
(b) for each qualified taxpayer described in Subsection (6)(a), the amount of tax credit
that has been assigned; and
(c) an aggregate list of the tax credit amount assigned related to a qualified
development demonstrating that the aggregate annual amount of the tax credits assigned does
not exceed the aggregate annual tax credit awarded in the allocation certificate.
(7) The Utah Housing Corporation shall provide a special low-income housing tax
credit certificate to a qualified taxpayer if:
(a) a designated reporter has provided the information regarding the qualified taxpayer
as described in Subsection (6); and
(b) the Utah Housing Corporation has verified that the aggregate tax credit amount
assigned with respect to a qualified development does not exceed the total tax credit awarded
in the allocation certificate.
(8) (a) All elections made by a housing sponsor pursuant to Section 42, Internal
Revenue Code, shall apply to this section.
(b) (i) If a qualified taxpayer is required to recapture a portion of any federal
low-income housing credit, the qualified taxpayer shall also be required to recapture a portion
of any state tax credits authorized by this section.
(ii) The state recapture amount shall be equal to the percentage of the state tax credit
that equals the proportion the federal recapture amount bears to the original federal low-income
housing credit amount subject to recapture.
(iii) The designated reporter shall identify each qualified taxpayer that is required to
recapture a portion of any state tax credits as described in this Subsection (8)(b).
(9) (a) Any tax credits returned to the Utah Housing Corporation in any year may be
reallocated within the same time period as provided in Section 42, Internal Revenue Code.
(b) Tax credits that are unallocated by the Utah Housing Corporation in any year may
be carried over for allocation in subsequent years.
(10) (a) If a tax credit is not claimed by a qualified taxpayer in the year in which it is
earned because the tax credit is more than the tax owed by the qualified taxpayer, the tax credit
may be carried back three years or may be carried forward five years as a credit against the tax.
(b) Carryover tax credits under Subsection (10)(a) shall be applied against the tax:
(i) before the application of the tax credits earned in the current year; and
(ii) on a first-earned first-used basis.
(11) (a) A qualified taxpayer may assign a special low-income housing tax credit
certificate received under Subsection (7) to another person if the qualified taxpayer provides
written notice to the Utah Housing Corporation, in a form established by the Utah Housing
Corporation, that includes:
(i) the qualified taxpayer's written certification or other proof that the qualified
taxpayer irrevocably elects not to claim the tax credit authorized by the special low-income
housing tax credit certificate; and
(ii) contact information for the person to whom the special low-income housing tax
credit certificate is to be assigned.
(b) If the qualified taxpayer meets the requirements of Subsection (11)(a), the Utah
Housing Corporation shall issue an assigned special low-income housing tax credit certificate
to the person identified by the qualified taxpayer for an amount equal to the qualified taxpayer's
special low-income housing tax credit minus any state recapture amount under Subsection
(8)(b).
(c) A person who is assigned a special low-income housing tax credit certificate in
accordance with this Subsection (11) may claim the tax credit as if:
(i) the person had met the requirements of this section to claim the tax credit, if the
person files a return under this chapter; or
(ii) the person had met the requirements of Section 
59-7-607
 to claim the tax credit
under Section 
59-7-607
, if the person files a return under Chapter 7, Corporate Franchise and
Income Taxes, Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay
Corporate Franchise or Income Tax Act, or Chapter 9, Taxation of Admitted Insurers.
(12) Any tax credit taken in this section may be subject to an annual audit by the
commission.
(13) The Utah Housing Corporation shall annually provide an electronic report to the
Revenue and Taxation Interim Committee which shall include at least:
(a) the purpose and effectiveness of the tax credits; [
and
]
(b) any recommendations as to whether the Legislature should continue, modify, or
repeal the aggregate annual tax credit amount that the Utah Housing Corporation is authorized
to allocate under Subsection (2)(c)(ii); and
[
(b)
] 
(c)
 the benefits of the tax credits to the state.
(14) The commission may, in consultation with the Utah Housing Corporation,
promulgate rules to implement this section.
(15) (a) In calendar years 2026 and 2029, the Revenue and Taxation Interim
Committee shall conduct a review of the aggregate annual tax credit amount that the Utah
Housing Corporation is authorized to allocate under Subsection (2)(c)(ii).
(b) In a review under this Subsection (15), the Revenue and Taxation Interim
Committee shall:
(i) study the Utah Housing Corporation's recommendations under Subsection (13)(b);
and
(ii) if the Revenue and Taxation Interim Committee decides to recommend legislative
action to the Legislature, prepare legislation for consideration by the Legislature in the next
general session.
Section 11. Section 
63I-2-259
 is amended to read:
63I-2-259.
Repeal dates: Title 59.
(1) In Section 
59-2-926
, the language that states "applicable" and "or 
53F-2-301.5
" is
repealed July 1, 2023.
(2) In relation to the Utah low-income housing tax credit that may be claimed under
Title 59, Chapter 7, Corporate Franchise and Income Taxes, on January 1, 2033:
(a) Subsection 
59-7-607
(2)(c)(i), the language that states "before December 31, 2022"
is repealed and replaced with "after January 1, 2033";
(b) Subsection 
59-7-607
(2)(c)(ii) is repealed;
(c) Subsection 
59-7-607
(13)(b) is repealed; and
(d) Subsection 
59-7-607
(15) is repealed.
[
(2)
] 
(3)
 Subsection 
59-7-610
(8), relating to claiming a tax credit in the same taxable
year as the targeted business income tax credit, is repealed December 31, 2024.
[
(3)
] 
(4)
 Subsection 
59-7-614.10
(5), relating to claiming a tax credit in the same
taxable year as the targeted business income tax credit, is repealed December 31, 2024.
[
(4)
] 
(5)
 Section 
59-7-624
 is repealed December 31, 2024.
[
(5)
] 
(6)
 Subsection 
59-10-210
(2)(b)(vi) is repealed December 31, 2024.
[
(6)
] 
(7)
 Subsection 
59-10-1007
(8), relating to claiming a tax credit in the same taxable
year as the targeted business income tax credit, is repealed December 31, 2024.
(8) In relation to the Utah low-income housing tax credit that may be claimed under
Title 59, Chapter 10, Individual Income Tax Act, on January 1, 2033:
(a) Subsection 
59-10-1010
(2)(c)(i), the language that states "before December 31,
2022" is repealed and replaced with "after January 1, 2033";
(b) Subsection 
59-10-1010
(2)(c)(ii) is repealed;
(c) Subsection 
59-10-1010
(13)(b) is repealed; and
(d) Subsection 
59-10-1010
(15) is repealed.
[
(7)
] 
(9)
 Subsection 
59-10-1037
(5), relating to claiming a tax credit in the same taxable
year as the targeted business income tax credit, is repealed December 31, 2024.
[
(8)
] 
(10)
 Section 
59-10-1112
 is repealed December 31, 2024.
Section 12. 
Effective date.
(1) Except as provided in Subsection (2), this bill takes effect on May 3, 2023.
(2) If approved by two-thirds of all the members elected to each house, the actions
affecting the following sections take effect upon approval by the governor, or the day following
the constitutional time limit of Utah Constitution, Article VII, Section 8, without the governor's
signature, or in the case of a veto, the date of veto override:
(a) Section 
10-9a-401
;
(b) Section 
10-9a-403
;
(c) Section 
10-9a-408
;
(d) Section 
17-27a-401
;
(e) Section 
17-27a-403
; and
(f) Section 
17-27a-408
.
Section 13. 
Retrospective operation.
The changes to Sections 
59-7-607
 and 
59-10-1010
 in this bill have retrospective
operation for a taxable year beginning on or after January 1, 2023.