1. (1) As used in this section:

   1. (a) "Affordable housing" means the same as that term is defined in Section 10-21-401.
   2. (b) "Owner-occupier" means the same as that term is defined in Section 10-21-401.
   3. (c) "Qualifying affordable home ownership multi-family density bonus" means municipal approval of a density of at least 20 residential units per acre.

2. (2) If a municipality approves a qualifying affordable home ownership multi-family density bonus, either through a zoning ordinance or a development agreement, the municipality may adopt requirements for the qualifying affordable home ownership multi-family density bonus area to ensure:

   1. (a) at least 20% more residential units per acre than are otherwise allowed in the area;
   2. (b) at least 60% of the total units in the multi-family residential building be deed-restricted to owner-occupancy for at least five years;
   3. (c) at least 25% of the total units in the multi-family residential building qualify as affordable housing;
   4. (d) at least 25% of the total units in a multi-family residential building to be no larger than 1,600 square feet; or
   5. (e) the applicant creates a preferential qualifying buyer program in which a unit in a multi-family residential building is initially offered for sale, for up to 30 days, to a category of preferred qualifying buyers established by the municipality, in accordance with provisions of the Fair Housing Act, 42 U.S.C. Sec. 3601.
3. (3) A municipality may offer additional incentives in a qualifying affordable home ownership multi-family density bonus area for multi-family residential units to promote owner-occupied, affordable housing.

Renumbered and Amended by Chapter 15, 2025 Special Session 1