Midway councilors weigh overlay zones, deed restrictions and ADUs to tackle starter-home shortage

Midway City Council members and staff spent their strategic planning meeting reviewing state and local housing data and debating tools the town might use to make housing affordable for essential workers and others priced out of the market.

The chair opened the presentation by pointing to state context: "Governor Cox aims to build 35,000 starter homes by 2028 to address this issue," and noted Utah and Wasatch County housing markets have outpaced incomes, driving starter homes out of reach for many.

Staff described the local affordability picture and why Midway faces particular challenges. "Affordable housing, I've always described the best way is like a pyramid," a staff member said, explaining that deep-subsidy rental programs sit at the bottom of that pyramid and require large amounts of public and private subsidy to produce genuinely affordable units. Staff repeatedly told councilors that even with donated land, construction and development costs mean subsidies on the order of hundreds of thousands of dollars per unit are typically necessary.

Councilors identified three persistent local barriers: neighborhood resistance to rentals and higher density, high land values in Midway, and market incentives that favor larger single‑family homes. The group reviewed a developer's preliminary proposal for about 11 acres that would yield roughly 170 rental units, "20 of them would be rent restricted," the chair said, and noted the project would return roughly 6% to the developer — well below typical market thresholds.

Members discussed specific policy tools. The chair and staff proposed using an overlay zone so the base zoning stays unchanged while allowing discretionary approvals that require affordable units, deed restrictions and compliance reporting. Staff warned that simply increasing density alone has not created affordability in similar, high‑demand markets. One staff member said LIHTC and similar programs can supply deep dollars but are competitive and site‑scored, meaning Midway would likely score lower than downtown Heber and that federal/state programs cannot be restricted only to "essential workers."

Accessory dwelling units (ADUs) and smaller unit sizes were discussed as lower-cost ways to add units. Several councilors supported permitting ADUs only when paired with enforceable rent or resale restrictions and a monitoring mechanism. "If it's for rent or it's for sale, you can put a deed restriction on it," a staff member said, while other members raised enforcement and compliance concerns for one‑off restricted units versus professionally managed developments.

On incentives, councilors debated tradeoffs between offering fee deferrals, density bonuses or donating land versus requiring transparency and long deed‑restriction terms so public support produces long‑term affordable inventory rather than a short-term price benefit for early buyers. One councilor proposed prioritizing reductions in density and strict deed restrictions over simple density increases if a credible subsidy cannot be identified.

At the meeting's close, the chair asked staff for next steps. A staff speaker said they could research overlay‑zone models, ADU code language, deed‑restriction templates and comparable programs in other jurisdictions and return with options in about two months. The council then adjourned after a motion was made and seconded.

Next steps: staff will prepare draft overlay/ADU options, deed‑restriction language and cost estimates for a future work meeting in approximately two months.