A municipality may only require the development of a certain number of moderate income housing units as a condition of approval of a land use application if:
Moderate income housing: means housing occupied or reserved for occupancy by households with a gross household income equal to or less than 80% of the median gross income for households of the same size in the county in which the city is located. See Utah Code 10-9a-103
Municipality: means :
(a)
a city of the first class, city of the second class, city of the third class, city of the fourth class, city of the fifth class;
a metro township as that term is defined in Section 10-2a-403 unless the term is used in the context of authorizing, governing, or otherwise regulating the provision of municipal services. See Utah Code 10-1-104
(a)
the municipality and the applicant enter into a written agreement regarding the number of moderate income housing units; or
(b)
the municipality provides incentives for an applicant who agrees to include moderate income housing units in a development.
(2)
If an applicant does not agree to participate in the development of moderate income housing units under Subsection (1)(a) or (b), a municipality may not take into consideration the applicant’s decision in the municipality’s determination of whether to approve or deny a land use application.
(3)
Notwithstanding Subsections (1) and (2), a municipality that imposes a resort community sales and use tax as described in Section 59-12-401, may require the development of a certain number of moderate income housing units as a condition of approval of a land use application if the requirement is in accordance with an ordinance enacted by the municipality before January 1, 2022.
