Planning Commission Work Session - October 3, 2024

Meeting Summary

The Planning Commission devoted nearly two hours of its October 3 work session to the city's proposed Critical Homeownership Overlay Zone (CHOZ), with multiple meeting extensions required to get through the discussion. The CHOZ concept first came before the commission on August 22, but was tabled at that time so staff could revisit the proposal and provide more background. City Planner Brittany Harris returned on October 3 with the additional context that had been missing from the August presentation. Harris explained that the State of Utah requires counties and municipalities to adopt strategies to expand housing for residents earning less than 80% of area median income — either by dedicating local funding for moderate-income housing or by adopting development ordinances reserving 10% or more of new homes for that income band. Failure to comply can trigger state fines of $250 per day. Lehi chose the development-ordinance route, and the CHOZ framework has been under development for roughly nine to ten months. Under the proposal, participating developers would commit to selling homes at least 20% below market value, with an equity-lock provision limiting how much value owners can realize on resale during a home's first ten years. First-priority access to those homes would go to critical and essential city workers, current Lehi residents, and first-time homeowners for the initial 30 days of listing. Commissioners pushed back hard on parts of the framework. Commissioner Emily Lockhart questioned whether market-based or non-profit solutions could address the housing problem without this level of government intervention, and raised concerns about telling property owners that the value of an asset they own "cannot be realized" for a fixed period. Chair Greg Jackson argued that the structure shifts the subsidy burden disproportionately onto the original landowner, who effectively sells land that has been upzoned for the developer's benefit, while leaving the developer's profit margin intact. Harris acknowledged those concerns and characterized CHOZ as a first step, saying the city expects to learn and revise as the program is implemented. No vote was taken at the work session. The commission and city staff agreed more time was needed to review the revised code language, and the CHOZ discussion was scheduled to continue at the commission's next public meeting on October 10.