UtahH.B. 372025 General SessionHouseWALLET

Utah Housing Amendments

Sponsored By: James A. Dunnigan (Republican)

Signed by Governor

CountiesLand UseHousingLocal Government BoundariesMunicipalitiesPolitical Subdivisions (Local Issues)TransportationIncorporationLocal Government OrdinancesPlanning and ZoningPublic TransitAffordable Housing

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Bill Overview

Analyzed Economic Effects

14 provisions identified: 10 benefits, 3 costs, 1 mixed.

Counties must plan for water conservation

County general plans must address water distribution and consider combining public water systems. Counties must consult state agriculture officials about conservation easements and water-saving improvements, and notify local irrigation or canal companies. They must recommend conservation policies and low-water landscaping standards for specified new commercial, industrial, institutional, shared-community, and multifamily developments. Counties must also review land-use rules that encourage wasted water. These requirements do not set household water rates.

Special districts can offer propane service

Utah special districts may operate propane systems as a local service. They remain subject to the four-service limit, with grandfathering rules, and other existing restrictions. Districts are not required to offer propane, and the law does not set household prices.

Town population rules retain 100-person floor

The law lowers one town-incorporation population threshold from 100 to 75 people. A separate rule still bars incorporation under this process for areas with fewer than 100 people. Areas with 75–99 people therefore remain ineligible, and other incorporation requirements still apply.

Cities gain more housing planning options

The law adds housing variety and affordability to city planning goals and expands the strategies cities can count. New options include projects receiving or qualifying for Utah Homes Investment Program funding and qualifying affordable homeownership density bonuses. Cities without fixed-guideway transit stations generally need three strategies. One qualifying zone, project, or density-bonus strategy counts as three when implemented through an ordinance or development agreement, giving three reporting years of compliance. Station communities can report five strategies including U and either G or H, or U, one X–CC strategy, and another strategy.

Counties gain more housing strategy choices

The law adds housing variety and affordability to county planning goals. Covered counties must plan for five years of moderate-income housing needs, using three A–V strategies or one W–BB strategy. Added options include housing investment zones, Utah Homes Investment Program projects, and affordable homeownership density bonuses. A report showing plans for or implementation of a W–BB strategy satisfies reporting rules for that year and the next two. Extra strategy W rules apply to covered counties with small transit districts created by January 1, 2022.

County housing plans can boost transportation priority

The Transportation Commission may favor projects in a covered county's unincorporated areas when its compliant housing report plans five or more strategies. The housing division must notify the county and transportation department when it gains or loses this status. Priority consideration does not guarantee project funding.

County permits cannot require annexation requests

County development agreements made on or after May 5, 2021, cannot enforce certain requirements to start municipal annexation. The ban covers clauses making an annexation request a condition of building permits or other development regulation in unincorporated areas. The rest of the agreement remains enforceable.

Local multifamily housing bonuses gain rules

Cities and counties may approve affordable homeownership bonuses for multifamily housing with at least 20 homes per acre. Both may require at least 20% more homes than zoning otherwise allows and set affordability, size, or owner-occupancy conditions. City options include 60% owner-occupancy for at least five years, 25% affordable homes, or 25% no larger than 1,600 square feet. City affordability standards use gross household income limits of 120% of county median income for sales and 80% for rentals. Bonuses require a zoning ordinance or development agreement; preferred-buyer offers may last up to 30 days and must follow fair housing law.

Local single-family housing bonuses gain rules

Cities and counties may approve affordable homeownership density bonuses through zoning ordinances or development agreements. Single-family bonuses allow at least six homes per acre where zoning allows fewer, or at least 0.5 more where it allows six or more. Cities may require 60% owner-occupancy for at least five years, 25% affordable homes, or 25% of homes no larger than 1,600 square feet. City affordability standards use gross household income limits of 120% of county median income for sales and 80% for rentals. Counties may also set owner-occupancy, affordability, and size conditions; both may offer preferred buyers up to 30 days, following fair housing law.

Utah must create statewide housing plan

The Governor's Office of Planning and Budget must develop a state housing plan by December 31, 2025. It must work with lawmakers, local governments, home builders, related groups, and the public. Reports to the Political Subdivisions Interim Committee are due each October 1. The planning requirement does not itself provide housing money or change who qualifies for help.

Housing-report lawsuits cannot win money damages

Plaintiffs in covered municipal housing-report enforcement lawsuits cannot collect money damages. They may seek court orders or other non-money relief. The limit also covers claims under Utah Code 10-9a-404(4)(c).

Daily fees for local housing-report failures

Beginning with 2024 reports, cities and covered counties owe $250 daily for missed housing reports or unresolved report problems. Beginning with 2025 reports, the fee rises to $500 daily for a consecutive year of failure. City fees start the day after the report deadline or the deadline to fix problems. Payments go to the Olene Walker Housing Loan Fund, and outstanding fees block compliance status. These are local government costs, not direct payment duties for residents.

Housing-report failures block local transportation funding

Missed housing reports, unresolved problems, or unsuccessful appeals can block state transportation and transit funding in cities and unincorporated county areas. Cities have 90 days to fix report problems; appeal requests generally have a 10-day deadline after notice. Beginning May 7, 2025, the transportation department cannot schedule covered, commission-prioritized funding after receiving an ineligibility notice. Projects scheduled before July 1, 2022, are exempt. Exceptions cover certain limited-access highways and transit lines serving multiple communities, but not highway interchange construction or station construction, rebuilding, or renovation. Restrictions end when the housing division gives notice that eligibility is restored.

Housing incentives can carry affordability requirements

Cities and counties may tie a required number of moderate-income homes to accepted qualifying housing incentives. Cities may also use written agreements or city-provided incentives to set these approval conditions. A city generally cannot count an applicant's refusal to participate against the land-use application. A resort-community sales tax city may impose the requirement under an ordinance enacted before January 1, 2022.

Sponsors & Cosponsors

Sponsor

  • James A. Dunnigan

    Republican • House

Cosponsors

  • Lincoln Fillmore

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 140 • No: 45

Senate vote • 3/7/2025

Senate/ circled

Yes: 0 • No: 0

House vote • 3/7/2025

House/ concurs with Senate amendment

Yes: 39 • No: 30

Senate vote • 3/7/2025

Senate/ passed 2nd & 3rd readings/ suspension

Yes: 22 • No: 6

Senate vote • 3/7/2025

Senate/ substituted

Yes: 0 • No: 0

Senate vote • 3/7/2025

Senate/ uncircled

Yes: 0 • No: 0

Senate vote • 2/27/2025

Senate Comm - Substitute Recommendation

Yes: 5 • No: 0

Senate vote • 2/27/2025

Senate Comm - Favorable Recommendation

Yes: 4 • No: 0

House vote • 2/20/2025

House/ passed 3rd reading

Yes: 58 • No: 9

House vote • 2/13/2025

House Comm - Favorable Recommendation

Yes: 6 • No: 0

House vote • 2/13/2025

House Comm - Substitute Recommendation

Yes: 6 • No: 0

Senate vote • Unknown

Senate/ uncircled

Yes: 0 • No: 0

Senate vote • Unknown

Senate/ substituted

Yes: 0 • No: 0

Senate vote • Unknown

Senate/ circled

Yes: 0 • No: 0

Actions Timeline

  1. Governor Signed

    3/26/2025
  2. House/ to Governor

    3/17/2025House
  3. House/ received enrolled bill from Printing

    3/17/2025House
  4. House/ enrolled bill to Printing

    3/13/2025House
  5. Enrolled Bill Returned to House or Senate

    3/13/2025
  6. Draft of Enrolled Bill Prepared

    3/12/2025
  7. Bill Received from House for Enrolling

    3/12/2025
  8. House/ signed by Speaker/ sent for enrolling

    3/12/2025House
  9. House/ received from Senate

    3/12/2025House
  10. Senate/ to House

    3/8/2025Senate
  11. Senate/ signed by President/ returned to House

    3/8/2025Senate
  12. Senate/ received from House

    3/8/2025Senate
  13. House/ to Senate

    3/7/2025House
  14. House/ concurs with Senate amendment

    3/7/2025House
  15. House/ placed on Concurrence Calendar

    3/7/2025House
  16. House/ received from Senate

    3/7/2025House
  17. Senate/ to House with amendments

    3/7/2025Senate
  18. Senate/ passed 2nd & 3rd readings/ suspension

    3/7/2025Senate
  19. Senate/ substituted

    3/7/2025Senate
  20. Senate/ uncircled

    3/7/2025Senate
  21. Senate/ circled

    3/7/2025Senate
  22. Senate/ 2nd & 3rd readings/ suspension

    3/7/2025Senate
  23. Senate/ Rules to 2nd Reading Calendar

    3/7/2025Senate
  24. Senate/ 2nd Reading Calendar to Rules

    3/7/2025Senate
  25. Senate/ Rules to 2nd Reading Calendar

    3/7/2025Senate

Bill Text

  • Enrolled

    3/13/2025

  • Substitute #4

    3/7/2025

  • Substitute #5

    3/7/2025

  • Substitute #3

    3/6/2025

  • Substitute #2

    2/27/2025

  • Substitute #1

    2/13/2025

  • Introduced

    12/19/2024

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