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Council debates voluntary attainable-ownership overlay; staff to schedule deeper work session
Summary
City staff presented a voluntary attainable-ownership overlay proposal that would let developers seek higher density or smaller homes in exchange for units priced at least 20% below market. Council raised concerns about infrastructure, income targeting, deed restrictions and investor purchases and asked for a detailed work session before any adoption.
Planning staff (referred to in the record as Britney) presented a voluntary 'attainable ownership overlay' to the Lehi City Council on Dec. 10 designed to let developers propose denser configurations and deed-restricted homes priced at least 20% below market in exchange for development incentives.
Under the proposed approach, an applicant would provide two plans (base zoning and overlay proposal), a simplified pro forma reviewed by the city’s economic development director, and a development agreement with enforceable provisions. The draft ordinance would include owner-occupancy deed restrictions (10 years, with limited equity recapture rules) and allow hardship carve-outs and up to 12 months of rental under narrow conditions.
Council members expressed guarded interest and also significant concerns. One member urged clearer income targeting and caps after noting the ordinance does not require 80% AMI and could allow relatively high-income ‘critical workers’ to qualify if owner-occupied. Another asked whether local infrastructure (water, sewer, roads) could support added density and requested engineering staff input.
Several council members and planning commissioners suggested alternative approaches that would be simpler to administer, such as limiting lot or home size rather than complex pro formas or income calculations. Planning staff said the overlay is intended to be market-driven and voluntary and that each proposal would return to planning commission and council for discretionary approval.
Council did not vote to adopt the ordinance. Members directed staff to schedule a detailed work session to review infrastructure impacts, possible income caps, whether deed-restriction terms should be shortened or otherwise refined, and potential geographic limits for the overlay.
