What is an overlay zoning district?

An overlay zone is a zoning district which is applied over one or more previously established zoning districts, establishing additional or stricter standards and criteria for included properties in addition to those of the underlying zoning district. Communities often use overlay zones to protect special features such as historic buildings, wetlands, steep slopes, and waterfronts. (Source: American Planning Association)

Why make these changes?

Affordable housing was ranked as a top priority in the 2019 Salt Lake City Resident Survey.

The city adopted Growing SLC: A Five-Year Housing in 2017 and has a number of efforts underway to assist with providing quality housing for its residents. The Planning Division’s current efforts include zoning changes for accessory dwelling units (ADUs), changes to the RMF-30 zone, and amendments related to single room occupancy (SRO) dwellings.

Where would the overlay apply?

The affordable housing overlay would apply to all zoning districts that allow residential uses. That does not mean that apartment buildings will start popping up in mostly single-family neighborhoods. It means that some housing types that are similar in scale will start popping up in those neighborhoods. This is similar to the historic development patterns in the city; with duplexes, triplexes, basement apartments, and small lot single family homes found in most neighborhoods. The apartment buildings will still be restricted to those zones where that type of housing is allowed.

What is affordable housing?

A home is generally considered affordable if the household pays 30% or less of their gross income (before taxes are taken out) towards rent/mortgage payments. Households are considered cost burdened if they pay more than this amount.

HUD uses the following categories and area median income percentages to break incomes into segments so that specific housing needs can be met:

Extremely Low Income Affordable Units: Housing units accommodating 30% AMI

Very Low Income Affordable Units: Housing units accommodating 50% AMI

Low Income Affordable Units: Housing units accommodating 80% AMI

In 2020, a single person household in the Salt Lake Metro Area has an area median income of $60,600. For a single person household, 80% of the income limit is $49,250 (30% = $1,231/month), 50% is $30,800 (30% = $770/month), and 30% is $18,450 (30% = $461/month).

The area median income for a family of four is $87,900. For a four-person household, 80% of the income limit is $70,300 (30% = $1,757/month), 50% is $43,950 (30% = $1,099/month), and 30% is $26,350 (30% = $659/month). (Sources: Growing SLC and HUD)

In May 2020, the typical monthly rent for the Salt Lake Metro Area is $1,332. This is a nearly 23% increase from $1,085 in May 2015.

(Source: Zillow Observed Rent Index)

Why doesn’t the city implement inclusionary zoning?

Growing SLC included a recommendation that the city consider this policy. Per Growing SLC, “inclusionary zoning programs refer to local land use ordinances that require or encourage developers to include affordable units in new residential developments, either applied to an entire city or focused on a distinct geographic area. Affordability is often achieved through an indirect subsidy to residential developers—including through increased development capacity or other accommodations during the development review process.”

Inclusionary zoning is a possible outcome as another potential tool to help with affordable housing. The overlay could help support an inclusionary program by granting more development potential, which could lead to an increase in affordable dwelling units.

Why doesn’t the city implement rent-control?

Utah Code prohibits rent control statewide. The city does not regulate the prices that private individuals and owners charge. The city’s zoning ordinance does not address prices or ownership. These decisions are left to the market.

How much are Salt Lake City and Utah growing?

Salt Lake City has grown by 14,000 people since 2010. Utah had the second fastest housing unit growth in the country from 2010-2019 at 15.7%. Much of this growth was in Salt Lake and Utah counties with Herriman, South Jordan, and Lehi being some of the fastest growing cities. The population in the state is expected to nearly double in the next 50 years. (Source: Kem C. Gardner Policy Institute)

Accommodating a portion of this growth in Salt Lake allows for people to live and work in close proximity. This will allow for the growth of various businesses, reduce air pollution, and save commuting time.

What impact does population growth have on housing costs?

An increase in population may result in an increase in housing costs if the population grows faster than housing units are constructed. The construction of housing units slowed during and following the Great Recession and population growth increased at a faster rate than the construction of housing units. Salt Lake City is catching up with its growth. The city has grown by over 14,000 people since 2010 and constructed over 13,000 new units – nearly 4,000 of them in the past year. (Sources: Kem C. Gardner Policy Institute and Ivory-Boyer Construction Report).

Why are many new apartment units so expensive?

Many new apartments are expensive because the demand is being driven by higher paying jobs in certain employment sectors and the regional amenities that contribute to our quality of life. This means that households that have lower annual incomes are having a hard time finding housing that is affordable to their incomes.

Will this proposal result in the demolition of existing residential buildings?

Yes. It is anticipated that some residential buildings will be demolished and be replaced by additional units. If someone were to use the overlay, a percentage of the units would be required to remain affordable through a deed restriction or as required by the funding sources. There are a number of historic districts in the city and it is unlikely that a contributing building in a local historic district would be demolished.

Where will residents park?

The parking that would be required for affordable units is generally the same number of spaces as required for other units. In single-family zones, if the unit is near high-frequency transit, no more than one parking space would be required.

Will this proposal affect historic districts or historic properties?

The proposal does not waive requirements specific to local historic districts or local landmark properties. It is unlikely that contributing buildings would be demolished. Non-contributing or out-of-period buildings may be demolished and replaced. This would follow the existing process for demolition and new construction and would require a Certificate of Appropriateness.

Historic districts that are listed on the National Register of Historic Places, but are not locally designated are not subject to local historic regulations. Additionally, buildings and neighborhoods that are older, but not locally designated as historic landmarks or districts, are not subject to the city’s historic preservation requirements.