Draper, Holladay propose way for high-density housing to fulfill legislative mandate

DRAPER — As cities across northern Utah work to comply with new housing mandates put in place this year by the state Legislature, Draper and Holladay leaders are looking at zoning changes to pave the way for more high-density and moderate-income housing.

In an effort by lawmakers to tackle the housing shortage that became even more acute during the pandemic, HB462 requires cities to zone for some moderate-income housing while encouraging more dense housing to be permitted near public transit hubs. State funding is tied to compliance with the new law.

'Skyrocketing' prices increase pressure to create more housing

Draper has grown by 22.6% over the past 10 years, and 10% of that growth happened within the past five years, Todd Draper, city planner, wrote in a recent report detailing the city's proposed changes to its general plan.

"With many strategies to select from, it is important to select strategies that balance the needs of the existing community with those of future residents and employees, particularly those with moderate incomes," Draper wrote.

Draper, the city planner, proposes six strategies to bring more moderate-income and high-density housing to the area, particularly near transit zones:

• Allow internal or detached accessory dwelling units to be created in residential zones. Current city code allows accessory dwelling units but does not specify the types allowed.
• Zone or rezone for higher-density or moderate-income homes to be built in commercial or mixed-use zones near major transit hubs, commercial centers or employment centers.
• Let higher-density or new moderate-income residential development happen in commercial or mixed-use zones near major transit investment corridors.
• Implement zoning incentives for moderate-income units in new developments.
• Develop and adopt a transit station area plan.
• Apply for state or federal funds, or tax incentives, to promote the building of moderate-income housing.

Now, Draper has just 13 homes with accessory dwelling units, but 27 additional units are under review, according to the report. Of the city's 15,590 housing units, 12,129 are occupied by their owners and 3,461 are classified as rental units.

Moderate-income housing is defined as households that make less than 80% of the county area median income level.

But Draper leaders say the city currently needs 417 additional units for families that make less than 50% of the area median income — which would be up to about $46,100 per year. Meanwhile, 940 units are needed in Draper to house those who make less than 30% of the area median income, or up to $27,650, the report notes.

Rent for those who make less than 30% of the area median income would be $411 (before utility bills), and there are currently zero homes in that range, the report says.

Draper, the city planner, noted in the report that the city has "historically been rural in nature" with large residential lots and allows agricultural uses.

"Current residents place significant public interest in maintaining the core character of the city as it contributes to protection of the high quality of life they enjoy. Recent changes to zoning regulations to allow for higher residential density, including specific adjustments to zoning near fixed transit stations that have allowed for increased residential development, have made some progress in addressing moderate-income housing needs," Draper wrote.

He said members of the public expressed a desire for a "better balance" between housing types to achieve more moderate-income housing. A few emailed comments from residents that were attached to the report detailed concerns with a potential increase in traffic should a large amount of new housing be brought to the area, and concerns about more people leaving Draper generally.

But the city planner wrote that "skyrocketing regional housing prices and rents, combined with slower wage growth, and historic inflation have exacerbated the demand for moderate-income housing and will likely exert additional pressure to increase the amount of available housing of all types within the city over the coming years."

Draper will hold a public hearing on the proposals during a Planning Commission meeting Thursday at 6:30 p.m. at the city hall.

Holladay wants to 'provide a diversity of housing options'

Like Draper, Holladay city planners propose to "study, update and rezone" locations in the city to allow for more mixed-use residential development. That includes higher-density or moderate-income housing development, according to a report prepared for the City Council.

The general plan could be updated to promote additional commercial, mixed-use zones near transit hubs, commercial centers or employment centers.

City planners propose collaborating with redevelopment agency partners to find locations for and build moderate-income housing, and studying opportunities to build new moderate-income housing within existing residential zones. The planners also suggest studying parking in housing zones with the intent to reduce parking requirements.

The proposals also include reducing or eliminating construction impact fees related to new moderate-income housing.

City planners in Holladay also describe accessory dwelling units as one of the factors in creating more moderate-income housing. The new city general plan, if approved, would direct the city to study the current accessory dwelling unit patterns "and create or allow for enhanced enabling regulations." Planners also suggest creating or allowing for rezones to enable land use in existing commercial areas.

But city planners noted in the report Holladay faces some challenges in creating more moderate-income housing, including the "elevated land values and exclusivity" and resident opposition to dense housing.

In 2018, residents approved a referendum to block a housing development at the Old Cottonwood Mall. The development would have brought 775 high-rise apartments, more than 200 homes and dozens of shops and restaurants on the 57-acre site of the former Cottonwood Mall. After the city rejected the referendum and the petitioners sued, the Utah Supreme Court ruled in favor of voters, blocking the development from happening.

Holladay will also hold a public hearing Thursday evening on the proposed changes to the general plan at 6 p.m. at the city hall.

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