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Staff outlines menu of moderate-income housing strategies; commission to recommend five of six options
Summary
Planning staff presented options to meet the state's moderate-income housing requirements, recommending a mix of fee reductions, infrastructure investment tied to the WRF, zoning incentives and accessory-dwelling strategies; the commission will review formal recommendations at a future public hearing.
Planning staff presented a proposed package of strategies to satisfy Utah's moderate-income housing reporting requirements. State rules require municipalities to adopt a housing plan and demonstrate progress on at least three strategies each year (five strategies are required to obtain priority funding), and staff told commissioners that failing to meet the minimum risks fines (meeting language cited a penalty of roughly $200,000'$250,000 and loss of transportation funding) if the city does not document compliance.
Staff's "highly recommended" items include: (1) a recurring program to reduce impact fees (for example a 10% reduction tied to updated master plans for specific fees and targeted at detached accessory dwelling units), and (2) demonstrated city investment in infrastructure that will facilitate moderate-income housing, specifically upgrades and expansion tied to the city's water-reclamation facility (WRF). Staff proposed structuring some items as two-year strategies (begin work now and show tangible progress by the next reporting cycle) so the work can be credited across two reporting periods.
Other proposed strategies and options discussed include: zoning incentives in planned-unit development (PUD) areas to increase density for projects that reserve a defined percentage of units at smaller minimum sizes; actively pursuing rezones of properties adjacent to commercial or mixed-use corridors to allow higher-density housing; and multiple options for expanding detached accessory dwelling units (DADUs) citywide, such as rezoning specific zones, targeted code amendments to setback and rear-yard definitions, neighborhood open houses to solicit local feedback, or a special-use-permit pathway to allow DADUs in zones that currently prohibit them.
Staff emphasized that the planning commission will be asked at a future meeting to recommend five strategies (and specific options where multiple choices exist) to the City Council. Commissioners asked clarifying questions about the mechanics and timing of two-year strategies, whether pre-application work can count toward state credit, and about practical barriers such as utility capacity and interest rates. Staff said several of the proposed strategies are already underway (for example, master-plan updates and WRF planning) and therefore are strong candidates for inclusion in the local plan.
No formal recommendation was taken at the meeting; staff will circulate the full draft strategy list and statistics and schedule the required public hearing for the next planning commission meeting.
