1. (1) A home ownership promotion zone shall promote the following objectives:

   1. (a) increasing availability of housing, including affordable housing;
   2. (b) promotion of home ownership;
   3. (c) overcoming development impediments and market conditions that render an affordable housing development cost prohibitive absent the incentives resulting from a home ownership promotion zone; and
   4. (d) conservation of water resources through efficient land use.

2. (2) In order to accomplish the objectives described in Subsection (1), a municipality shall ensure that:

   1. (a) land inside the proposed home ownership promotion zone is zoned as residential, with at least six planned housing units per acre;
   2. (b) at least 60% of the proposed housing units within the home ownership promotion zone are affordable housing units; and
   3. (c) all of the proposed housing units within the home ownership promotion zone are deed restricted to require owner occupation for at least five years.
3. (3) A municipality may restrict short term rentals in a home ownership promotion zone.

4. (4) A municipality may not create a home ownership promotion zone if:

   1. (a) the proposed home ownership promotion zone would overlap with a school district and:

      1. (i)

         1. (A) the school district has more than one municipality within the school district's boundaries; and
         2. (B) the school district already has 100 acres designated as home ownership promotion zone within the school district's boundaries; or

      2. (ii)

         1. (A) the school district has one municipality within the school district's boundaries; and
         2. (B) the school district already has 50 acres designated as home ownership promotion zone within the school district's boundaries; or

   2. (b) the area in the proposed home ownership zone would overlap with:

      1. (i) a project area, as that term is defined in Section 17C-1-102, and created under Title 17C, Chapter 1, Agency Operations, until the project area is dissolved in accordance with Section 17C-1-702; or
      2. (ii) an existing housing and transit reinvestment zone.

Renumbered and Amended by Chapter 94, 2026 General Session