Planning Commission Meeting - October 10, 2024

Meeting Summary

The Planning Commission continued its review of the city's controversial Critical Homeownership Overlay Zone (CHOZ) at this regular meeting, picking up the discussion that began at the October 3 work session. The CHOZ is Lehi's response to a state mandate requiring municipalities to either commit dedicated local funding for moderate-income housing or adopt development ordinances reserving at least 10% of new homes for households earning less than 80% of the area median income; failure to comply carries state fines of $250 per day. As proposed, the overlay would allow participating developers to build at higher density in exchange for selling homes at least 20% below market value, with priority access during the first 30 days for critical city workers, current Lehi residents, and first-time homebuyers. A 10-year equity-lock provision is intended to prevent buyers from quickly flipping the homes for a profit at full market price. The October 10 meeting focused on revisions to the draft code that staff had prepared after the August 22 and October 3 discussions. Commissioners and members of the public continued to wrestle with the same sticking points raised earlier — particularly the equity lock's restrictions on owner resale rights, who actually bears the financial burden of the subsidy, and whether the proposed structure meaningfully shifts profit margins between landowners, builders, and homebuyers. No final recommendation was issued at this meeting; the CHOZ remained in the commission's review queue while staff continued refining the proposal. The CHOZ discussion ultimately culminated in December 2024, when the Planning Commission issued a negative recommendation on the rebranded "Attainable Homeownership Overlay Zone" (AHOZ), forwarding it to City Council for further consideration in early 2025.