Provo officials ask state lawmakers to boost penalties, limit investor holdings and expand buyer aid to increase owner-occupied housing

Provo City officials laid out a package of legislative requests and city strategies designed to increase owner-occupied, attainable housing and curb investor-driven rental conversions.

Councilor George Handley and city staff described three core obstacles driving the shift away from owner-occupancy: a high rental share (handouts cited roughly 62% rental dominance), an affordability gap because incomes in Provo are lower than many neighboring communities, and rising median home prices. "We have an affordability issue in Provo," Handley said, adding that many local households cannot reach the price points of the current market.

City staff asked state lawmakers for several specific changes. Presenter Rachel Whipple requested an amendment to what she referred to in the meeting as "Utah code ten-three 703" to let cities raise the statutory penalty cap for property-use violations so local governments can enforce against illegal conversions more effectively. "Thousand dollars is just a cost of doing business," Whipple said, arguing the existing maximum fine does not deter investors who convert owner-occupied homes to rentals.

Whipple also proposed limits on the number of units a single investor or investor group may hold in a residential area and asked the Legislature to give cities more flexibility to request development agreements that could guarantee a mix of for-sale and rental units. "Currently...these can only be proffered or proposed by the developer," she said, urging changes that would let cities request development agreement conditions that better align projects with local housing goals.

To address financing barriers, city presenters asked the state to expand targeted buyer programs. They proposed broadening a law-enforcement first-time homebuyer benefit to include teachers, firefighters and other essential workers and to allow first-time homebuyer funds to be used for existing homes as well as new construction. "If that price is not increased, they're still priced out of the market," Whipple said while urging higher maximum purchase-price thresholds for state programs.

City speakers emphasized tradeoffs and limits. Handley noted Provo has entitled more than 1,400 units that remain unbuilt because of infrastructure constraints such as sewer capacity, and he pointed out access problems with existing assistance programs — for example, some programs require applicants to be already under contract or operate on a first-come, first-served basis.

Officials did not propose immediate local ordinances that would change owner-occupancy rules on the spot; instead they asked state legislators to consider statutory changes and pledged to follow up with staff outreach and materials. No formal motions or votes were taken at the event. Staff said soft copies of the materials would be distributed to attendees and partners for next steps.