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ULCT reviews state housing plan, MHIP submenu and ADU bills ahead of session
Summary
Utah League of Cities and Towns staff briefed members on the state housing plan, an ownership-focused MIHP submenu proposal, and pending bills including House Bill 37, HB 88 and HB 90, and discussed state surplus land as a prioritized housing resource for the session.
Utah League of Cities and Towns (ULCT) staff told members on Jan. 13 that the governor’s Phase 1 state housing plan will be released the week before the legislative session and urged cities to align local reporting and zoning tools with that plan.
The league’s recommendation to lawmakers is to pursue an “ownership MIHP submenu” this year instead of creating multiple new overlay zoning tools. Under the staff proposal, municipalities could adopt one of several existing tools (for example HDRZ/HTRZ-type zones, density bonuses, or similar programs) to qualify automatically for state MIHP (moderate-income housing program) compliance while the state housing plan is finalized.
Why it matters: League staff said Phase 1 of the state plan will set high-level goals and metrics; aligning municipal reporting and incentives with those metrics would reduce duplicative requests for data and help the state and cities evaluate whether policy changes actually increase owner-occupied affordable housing. The proposal is intended as a bridge while the state finalizes a broader MHIP/MIHP update later in 2025.
Key details reported to members: - House Bill 37 (Rep. Jim Dunnigan): three components—an optional overlay for affordable homeownership, reporting metrics, and a requirement that cities participate in subregional housing plans. ULCT’s staff recommendation is “position pending” while they align the bill’s data asks with the state housing plan. - Ownership MIHP submenu: staff propose counting certain existing actions (use of HDRZ/HTRZ-style tools, approved HB 572 projects, owner-occupied conversions and certain density bonuses) as MIHP compliance. If adopted locally this year, a city would be treated as compliant for reporting purposes. - House Bill 88 (Rep. Ward): as drafted, would require detached accessory dwelling units (ADUs) by right in cities within first- and second-class counties (counties of 185,000+). ULCT staff recommended opposing HB 88 as drafted because of infrastructure and local control concerns; staff will collect more city ADU policy data via Slido and a follow-up survey. - House Bill 90 (Rep. Ward): would allow 4,000-square-foot lots by right and require housing by right in all commercial areas within the same counties. Staff recommended opposing HB 90 in its current form, saying it could undermine local center/station area planning and lacks an infrastructure or affordability nexus. - State surplus land: staff flagged a session priority shift toward identifying surplus state-owned land (UDOT and other state parcels) for affordable homeownership development. Because state land is not subject to local zoning, ULCT emphasized the importance of coordinating infrastructure planning and exploring models (state land trust examples in Colorado and New York were noted).
City leaders and staff at the meeting emphasized the need for clarity on: how surplus parcels would be entitled, whether the state would pause selling surplus parcels while policy is developed, and how new housing on public land would be funded for services (schools, roads, utilities).
The league will circulate Phase 1 of the state housing plan after it is published and follow up with a more detailed MIHP submenu draft and data survey to members.
Ending: League staff said they will continue to refine the staff recommendations with city feedback and meet with sponsors to negotiate language before the Legislature convenes.
