Bill
Housing Affordability Amendments
- Number
- S.B. 181 (2025GS)
- Sponsor
- Sen. Fillmore, Lincoln
- Final action
- Governor Signed 3/26/2025
- Outcome
- Became law — signed by Gov. Spencer J. Cox
Summary
This bill enacts and amends provisions related to housing affordability.
What it does
- This bill:
- defines and amends terms;
- enacts provisions of certain land use regulations with regard to certain types of parking spaces;
- provides certain exceptions; and
- makes technical and conforming changes.
Every vote on this bill
2/18/2025Senate Comm - Substitute Recommendation
Senate Economic Development and Workforce Services Committee
3-0-3not eligible / no record2/18/2025Senate Comm - Favorable Recommendation
Senate Economic Development and Workforce Services Committee
5-0-1not eligible / no record2/21/2025Senate/ passed 2nd reading
Senate 3rd Reading Calendar
26-0-3not eligible / no record2/24/2025Senate/ passed 3rd reading
Clerk of the House
22-0-7not eligible / no record2/28/2025House Comm - Favorable Recommendation
House Political Subdivisions Committee
7-0-3not eligible / no record3/6/2025House/ passed 3rd reading
House Speaker
50-20-5NAYBill text
enrolled version · official source
230 10-9a-534 17-27a-530 59-2-1101 0 Housing Affordability Amendments 2025 GENERAL SESSION STATE OF UTAH Chief Sponsor: Lincoln Fillmore House Sponsor: Stephen L. Whyte LONG TITLE General Description: This bill enacts and amends provisions related to housing affordability. Highlighted Provisions: This bill: defines and amends terms; enacts provisions of certain land use regulations with regard to certain types of parking spaces; provides certain exceptions; and makes technical and conforming changes. Money Appropriated in this Bill: None Other Special Clauses: None Utah Code Sections Affected: AMENDS: 10-9a-534 , as last amended by Laws of Utah 2024, Chapter 415 17-27a-530 , as last amended by Laws of Utah 2024, Chapter 415 59-2-1101 , as last amended by Laws of Utah 2024, Chapter 254 Be it enacted by the Legislature of the state of Utah: Section 1, Section 10-9a-534 is amended to read: 10-9a-534 . Regulation of building design elements prohibited -- Regulation of parking spaces prohibited -- Exceptions. (1) As used in this section , : (a) "Affordable housing" means housing occupied or reserved for occupancy that is priced at 80% of the county median home price. (b) "building "Building design element" means: (a) (i) exterior color; (b) (ii) type or style of exterior cladding material; (c) (iii) style, dimensions, or materials of a roof structure, roof pitch, or porch; (d) (iv) exterior nonstructural architectural ornamentation; (e) (v) location, design, placement, or architectural styling of a window or door; (f) (vi) location, design, placement, or architectural styling of a garage door, not including a rear-loading garage door; (g) (vii) number or type of rooms; (h) (viii) interior layout of a room; (i) (ix) minimum square footage over 1,000 square feet, not including a garage; (j) (x) rear yard landscaping requirements; (k) (xi) minimum building dimensions; or (l) (xii) a requirement to install front yard fencing. (c) "Owner-occupied" means a housing unit in which the individual who owns the housing unit, solely or jointly, lives as the individual's primary residence for no less than five years. (d) "Specified municipality" means the same as that term is defined in Section 10-9a-408 . (e) "Unobstructed" means a parking space that has no permanent barriers that would unreasonably reduce the size of an available parking space described in Subsection (4) . (2) Except as provided in Subsection (3), a municipality may not impose a requirement for a building design element on a one- or two-family dwelling. (3) Subsection (2) does not apply to: (a) a dwelling located within an area designated as a historic district in: (i) the National Register of Historic Places; (ii) the state register as defined in Section 9-8a-402 ; or (iii) a local historic district or area, or a site designated as a local landmark, created by ordinance before January 1, 2021, except as provided under Subsection (3)(b); (b) an ordinance enacted as a condition for participation in the National Flood Insurance Program administered by the Federal Emergency Management Agency; (c) an ordinance enacted to implement the requirements of the Utah Wildland Urban Interface Code adopted under Section 15A-2-103 ; (d) building design elements agreed to under a development agreement; (e) a dwelling located within an area that: (i) is zoned primarily for residential use; and (ii) was substantially developed before calendar year 1950; (f) an ordinance enacted to implement water efficient landscaping in a rear yard; (g) an ordinance enacted to regulate type of cladding, in response to findings or evidence from the construction industry of: (i) defects in the material of existing cladding; or (ii) consistent defects in the installation of existing cladding; (h) a land use regulation, including a planned unit development or overlay zone, that a property owner requests: (i) the municipality to apply to the owner's property; and (ii) in exchange for an increase in density or other benefit not otherwise available as a permitted use in the zoning area or district; or (i) an ordinance enacted to mitigate the impacts of an accidental explosion: (i) in excess of 20,000 pounds of trinitrotoluene equivalent; (ii) that would create overpressure waves greater than .2 pounds per square inch; and (iii) that would pose a risk of damage to a window, garage door, or carport of a facility located within the vicinity of the regulated area. (4) A municipality that is a specified municipality may not: (a) require that the dimensions of a single parking space for a one- or two-family dwelling or town home be: (i) for unobstructed, enclosed, or covered parking: (A) more than 10 feet wide; or (B) more than 20 feet long; or (ii) for uncovered parking: (A) more than nine feet wide; or (B) more than 20 feet long; (b) restrict an unobstructed tandem parking space from satisfying two parking spaces as part of a minimum parking space requirement; and (c) restrict a two-car garage from satisfying two parking spaces as part of a minimum parking space requirement. (5) A municipality may not require a garage for a single-family attached or detached dwelling that is owner-occupied affordable housing. (6) If a municipality requires a garage, the municipality shall count each parking space within the garage as part of the municipality's minimum parking space requirement as described in Section 10-9a-530 . (7) Nothing in this section prohibits a municipality from requiring on-site parking for owner-occupied affordable housing. Section 2, Section 17-27a-530 is amended to read: 17-27a-530 . Regulation of building design elements prohibited -- Regulation of parking spaces prohibited -- Exceptions. (1) As used in this section , : (a) "Affordable housing" means housing occupied or reserved for occupancy that is priced at 80% of the county median home price. (b) "building "Building design element" means: (a) (i) exterior color; (b) (ii) type or style of exterior cladding material; (c) (iii) style, dimensions, or materials of a roof structure, roof pitch, or porch; (d) (iv) exterior nonstructural architectural ornamentation; (e) (v) location, design, placement, or architectural styling of a window or door; (f) (vi) location, design, placement, or architectural styling of a garage door, not including a rear-loading garage door; (g) (vii) number or type of rooms; (h) (viii) interior layout of a room; (i) (ix) minimum square footage over 1,000 square feet, not including a garage; (j) (x) rear yard landscaping requirements; (k) (xi) minimum building dimensions; or (l) (xii) a requirement to install front yard fencing. (c) "Owner-occupied" means a housing unit in which the individual who owns the housing unit, solely or jointly, lives as the individual's primary residence for no less than five years. (d) "Specified county" means the same as that term is defined in Section 17-27a-408 . (e) "Unobstructed" means a parking space that has no permanent barriers that would unreasonably reduce the size of an available parking space described in Subsection (4). (2) Except as provided in Subsection (3), a county may not impose a requirement for a building design element on a one- or two-family dwelling. (3) Subsection (2) does not apply to: (a) a dwelling located within an area designated as a historic district in: (i) the National Register of Historic Places; (ii) the state register as defined in Section 9-8a-402 ; or (iii) a local historic district or area, or a site designated as a local landmark, created by ordinance before January 1, 2021, except as provided under Subsection (3)(b); (b) an ordinance enacted as a condition for participation in the National Flood Insurance Program administered by the Federal Emergency Management Agency; (c) an ordinance enacted to implement the requirements of the Utah Wildland Urban Interface Code adopted under Section 15A-2-103 ; (d) building design elements agreed to under a development agreement; (e) a dwelling located within an area that: (i) is zoned primarily for residential use; and (ii) was substantially developed before calendar year 1950; (f) an ordinance enacted to implement water efficient landscaping in a rear yard; (g) an ordinance enacted to regulate type of cladding, in response to findings or evidence from the construction industry of: (i) defects in the material of existing cladding; or (ii) consistent defects in the installation of existing cladding; (h) a land use regulation, including a planned unit development or overlay zone, that a property owner requests: (i) the county to apply to the owner's property; and (ii) in exchange for an increase in density or other benefit not otherwise available as a permitted use in the zoning area or district; or (i) an ordinance enacted to mitigate the impacts of an accidental explosion: (i) in excess of 20,000 pounds of trinitrotoluene equivalent; (ii) that would create overpressure waves greater than .2 pounds per square inch; and (iii) that would pose a risk of damage to a window, garage door, or carport of a facility located within the vicinity of the regulated area. (4) A county that is a specified county may not: (a) require that the dimensions of a single parking space for a one- or two-family dwelling or town home be: (i) for unobstructed, enclosed, or covered parking: (A) more than 10 feet wide; or (B) more than 20 feet long; or (ii) for uncovered parking: (A) more than nine feet wide; or (B) more than 20 feet long; (b) restrict an unobstructed tandem parking space from satisfying two parking spaces as part of a minimum parking space requirement; and (c) restrict a two-car garage from satisfying two parking spaces as part of a minimum parking space requirement. (5) A county may not require a garage for a single-family attached or detached dwelling that is owner-occupied affordable housing. (6) If a county requires a garage, the county shall count each parking space within the garage as part of the county's minimum parking space requirement as described in Section 17-27a-526 . (7) Nothing in this section prohibits a county from requiring on-site parking for owner-occupied affordable housing. Section 3, Section 59-2-1101 is amended to read: 59-2-1101 . Definitions -- Exemption of certain property -- Proportional payments for certain property -- Exception -- County legislative body authority to adopt rules or ordinances. (1) As used in this section: (a) "Charitable purposes" means: (i) for property used as a nonprofit hospital or a nursing home, the standards outlined in Howell v. County Board of Cache County ex rel. IHC Hospitals, Inc., 881 P.2d 880 (Utah 1994); and (ii) for property other than property described in Subsection (1)(a)(i), providing a gift to the community. (b) "Compliance period" means a period equal to 15 taxable years beginning with the first taxable year for which the taxpayer claims a tax credit under Section 42, Internal Revenue Code, or Section 59-7-607 or 59-10-1010 . (c) (i) "Educational purposes" means purposes carried on by an educational organization that normally: (A) maintains a regular faculty and curriculum; and (B) has a regularly enrolled body of pupils and students. (ii) "Educational purposes" includes: (A) the physical or mental teaching, training, or conditioning of competitive athletes by a national governing body of sport recognized by the United States Olympic Committee that qualifies as being tax exempt under Section 501(c)(3), Internal Revenue Code; and (B) an activity in support of or incidental to the teaching, training, or conditioning described in this Subsection (1)(c)(ii). (d) "Exclusive use exemption" means a property tax exemption under Subsection (3)(a)(iv), for property owned by a nonprofit entity used exclusively for one or more of the following purposes: (i) religious purposes; (ii) charitable purposes; or (iii) educational purposes. (e) (i) "Farm machinery and equipment" means tractors, milking equipment and storage and cooling facilities, feed handling equipment, irrigation equipment, harvesters, choppers, grain drills and planters, tillage tools, scales, combines, spreaders, sprayers, haying equipment, including balers and cubers, and any other machinery or equipment used primarily for agricultural purposes. (ii) "Farm machinery and equipment" does not include vehicles required to be registered with the Motor Vehicle Division or vehicles or other equipment used for business purposes other than farming. (f) "Gift to the community" means: (i) the lessening of a government burden; or (ii) (A) the provision of a significant service to others without immediate expectation of material reward; (B) the use of the property is supported to a material degree by donations and gifts including volunteer service; (C) the recipients of the charitable activities provided on the property are not required to pay for the assistance received, in whole or in part, except that if in part, to a material degree; (D) the beneficiaries of the charitable activities provided on the property are unrestricted or, if restricted, the restriction bears a reasonable relationship to the charitable objectives of the nonprofit entity that owns the property; and (E) any commercial activities provided on the property are subordinate or incidental to charitable activities provided on the property. (g) "Government exemption" means a property tax exemption provided under Subsection (3)(a)(i), (ii), or (iii). (h) (i) "Nonprofit entity" means an entity: (A) that is organized on a nonprofit basis, that dedicates the entity's property to the entity's nonprofit purpose, and that makes no dividend or other form of financial benefit available to a private interest; (B) for which, upon dissolution, the entity's assets are distributable only for exempt purposes under state law or to the government for a public purpose; and (C) for which none of the net earnings or donations made to the entity inure to the benefit of private shareholders or other individuals, as the private inurement standard has been interpreted under Section 501(c)(3), Internal Revenue Code. (ii) "Nonprofit entity" includes an entity: (A) if the entity is treated as a disregarded entity for federal income tax purposes and wholly owned by, and controlled under the direction of, a nonprofit entity; and (B) for which none of the net earnings and profits of the entity inure to the benefit of any person other than a nonprofit entity. (iii) "Nonprofit entity" includes an entity that is not an entity described in Subsection (1)(h)(i) if the entity jointly owns a property that: (A) is used for the purpose of providing permanent supportive housing; (B) has an owner that is an entity described in Subsection (1)(h)(i) or that is a housing authority that operates the permanent supportive housing; (C) has an owner that receives public funding from a federal, state, or local government entity to provide support services and rental subsidies to the permanent supportive housing; (D) is intended to be transferred at or before the end of the compliance period to an entity described in Subsection (1)(h)(i) or a housing authority that will continue to operate the property as permanent supportive housing; and (E) has been certified by the Utah Housing Corporation as meeting the requirements described in Subsections (1)(h)(iii)(A) through (D). (iv) "Nonprofit entity" includes an entity that is not an entity described in Subsection (1)(h)(i) if: (A) the entity is a housing organization as defined in Subsection 35A-8-2401(1)(a) ; and (B) the entity is owned by an entity described in Subsection (1)(h)(i) or a housing authority. (i) "Permanent supportive housing" means a housing facility that: (i) provides supportive services; (ii) makes a 15-year commitment to provide rent subsidies to tenants of the housing facility when the housing facility is placed in service; (iii) receives an allocation of federal low-income housing tax credits in accordance with 26 U.S.C. Sec. 42; and (iv) leases each unit to a tenant: (A) who, immediately before leasing the housing, was homeless as defined in 24 C.F.R. 583.5; and (B) whose rent is capped at no more than 30% of the tenant's household income. (j) (i) "Property of" means property that an entity listed in Subsection (3)(a)(ii) or (iii) has a legal right to possess. (ii) "Property of" includes a lease of real property if: (A) the property is wholly leased to a state or political subdivision entity listed in Subsection (3)(a)(ii) or (iii) under a triple net lease; and (B) the lease is in effect for the entire calendar year. (k) "Supportive service" means a service that is an eligible cost under 24 C.F.R. 578.53. (l) "Triple net lease" means a lease agreement under which the lessee is responsible for the real estate taxes, building insurance, and maintenance of the property separate from and in addition to the rental price. (2) (a) Except as provided in Subsection (2)(b), an exemption under this part may be allowed only if the claimant is the owner of the property as of January 1 of the year the exemption is claimed. (b) A claimant shall collect and pay a proportional tax based upon the length of time that the property was not owned by the claimant if: (i) the claimant is a federal, state, or political subdivision entity described in Subsection (3)(a)(i), (ii), or (iii); or (ii) pursuant to Subsection (3)(a)(iv): (A) the claimant is a nonprofit entity; and (B) the property is used exclusively for religious, charitable, or educational purposes. (3) (a) The following property is exempt from taxation: (i) property exempt under the laws of the United States; (ii) property of: (A) the state; (B) school districts; and (C) public libraries; (iii) except as provided in Title 11, Chapter 13, Interlocal Cooperation Act, property of: (A) counties; (B) cities; (C) towns; (D) special districts; (E) special service districts; and (F) all other political subdivisions of the state; (iv) except as provided in Subsection (6) or (7), property owned by a nonprofit entity used exclusively for one or more of the following purposes: (A) religious purposes; (B) charitable purposes; or (C) educational purposes; (v) places of burial not held or used for private or corporate benefit; (vi) farm machinery and equipment; (vii) a high tunnel, as defined in Section 10-9a-525 ; (viii) intangible property; and (ix) the ownership interest of an out-of-state public agency, as defined in Section 11-13-103 : (A) if that ownership interest is in property providing additional project capacity, as defined in Section 11-13-103 ; and (B) on which a fee in lieu of ad valorem property tax is payable under Section 11-13-302 . (b) For purposes of a property tax exemption for property of school districts under Subsection (3)(a)(ii)(B), a charter school under Title 53G, Chapter 5, Charter Schools, is considered to be a school district. (4) Subject to Subsection (5), if property that is allowed an exclusive use exemption or a government exemption ceases to qualify for the exemption because of a change in the ownership of the property: (a) the new owner of the property shall pay a proportional tax based upon the period of time: (i) beginning on the day that the new owner acquired the property; and (ii) ending on the last day of the calendar year during which the new owner acquired the property; and (b) the new owner of the property and the person from whom the new owner acquires the property shall notify the county assessor, in writing, of the change in ownership of the property within 30 days from the day that the new owner acquires the property. (5) Notwithstanding Subsection (4)(a), the proportional tax described in Subsection (4)(a): (a) is subject to any exclusive use exemption or government exemption that the property is entitled to under the new ownership of the property; and (b) applies only to property that is acquired after December 31, 2005. (6) (a) A property may not receive an exemption under Subsection (3)(a)(iv) if: (i) the nonprofit entity that owns the property participates in or intervenes in any political campaign on behalf of or in opposition to any candidate for public office, including the publishing or distribution of statements; or (ii) a substantial part of the activities of the nonprofit entity that owns the property consists of carrying on propaganda or otherwise attempting to influence legislation, except as provided under Subsection 501(h), Internal Revenue Code. (b) Whether a nonprofit entity is engaged in an activity described in Subsection (6)(a) shall be determined using the standards described in Section 501, Internal Revenue Code. (7) A property may not receive an exemption under Subsection (3)(a)(iv) if: (a) the property is used for a purpose that is not religious, charitable, or educational; and (b) the use for a purpose that is not religious, charitable, or educational is more than de minimis. (8) A county legislative body may adopt rules or ordinances to: (a) effectuate an exemption under this part; and (b) designate one or more persons to perform the functions given to the county under this part. (9) If a person is dissatisfied with an exemption decision made under designated decision-making authority as described in Subsection (8)(b), that person may appeal the decision to the commission under Section 59-2-1006 . Section 4. Effective Date. This bill takes effect on May 7, 2025 . 3-13-25 1:40 PM