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Council discusses Sunwood Canyon Villas plan and how to preserve attainable housing
Summary
Developers and council debated converting an RV park to a subdivided community of small single-family lots, weighing financing, setbacks, owner-occupied pads versus rentals, and whether to use a development agreement or a new zoning (R14) to preserve affordability.
Developers seeking to convert the former Canyon RV park into Sunwood Canyon Villas presented options to the Hurricane City Council for producing more-attainable single-family homes, and the council directed staff to continue working with the applicant on zoning and development-agreement options.
Developers said the project has a 16.47-acre footprint and aims to offer small-lot homeownership opportunities that could qualify for 30-year or FHA financing only if buyers own the land underneath the home. That requirement makes pad-only or chattel-financing products less attractive because those loans carry higher interest rates and shorter terms, the developer said. He added the project currently faces a 1,100-square-foot cap on homes under existing entitlements.
Council and staff explored two tracks: (1) create or tweak an R14-style zone (or allow an R14 variance through a development agreement) to allow smaller lots and adjusted setbacks; or (2) use a planned-unit-development or development agreement that preserves single-family ownership, restricts HOA costs and limits lots to keep monthly owner costs affordable. Council members emphasized limiting HOA fees and ensuring the development does not create long-term unaffordability through high HOA assessments.
The council did not take a final zoning action but asked staff to prepare ordinance options and work with the applicant on development-agreement language and PD approaches; staff noted that adapting existing PD/PDO rules or drafting a custom development agreement would be possible but might require further hearings.
