Lehi Planning Commission Meeting on Attainable Homeownership Overlay Zone - December 5, 2024

The Lehi Planning Commission held a public hearing on December 5, 2024, at 7:00 PM in the City Council Chambers (153 N. 100 E., Lehi, UT) to consider a Development Code Amendment adding the Attainable Homeownership Overlay Zone (AHOZ). The meeting featured a presentation from city staff and developer Jason Harris, followed by public comment and robust commission deliberation. No formal vote or recommendation was reached by the end of the discussion.

Public Comments & Testimony

• Jason Turner (online comment): Expressed support for anything that makes building homes easier, calling the overlay "a great step in the right direction."
• Leah Jay (Strong Towns Lehi): Supported the overlay, arguing that allowing more dense residential areas is necessary to lower housing prices and improve Lehi's long-term financial sustainability. She stated that housing is a shelter issue, not an investment issue, and that suburban development is a net drain on city finances.
• Marshall Gary: Spoke in favor of incremental growth and the overlay, sharing a personal family story of incremental housing changes. He urged the commission to give a positive recommendation.
• Kenzie Sterling (Skyridge High School senior): Supported the overlay as a young person hoping to own a home after college, noting that current prices make homeownership nearly impossible. She expressed willingness to compromise on amenities for affordability.
• Evan Hilton (American Fork resident): Expressed support for increased density and smaller lawns, which he said he can believe in.
• Ava (Strong Towns Lehi): Supported the overlay as a necessary compromise for the greater good, emphasizing that some negative effects are inevitable for the community to benefit as a whole.

Discussion Items

• Presentation by Brittany (City Staff) and Jason Harris (Developer): Detailed the AHOZ proposal, which allows developers to double density on a property in exchange for selling homes at least 20% below comparable market prices. Key data presented: Lehi's 2023 median household income was $107,000; 2023 median single-family home price was $655,000 (requiring $147,000 income); 2024 median price rose to $869,000 (requiring $195,000 income). Only 89 single-family homes were listed in 2024. The overlay is voluntary and would involve a development agreement locking in target prices. An example showed 53 lots becoming 106 lots with the same home size, reducing cost by $170,000 (20%).
• Commissioner Questions and Concerns:
  • Comparables and Price Setting: Commissioners asked how comparables would be defined (e.g., radius, city limits) and expressed concern that the 20% minimum might not be low enough to truly help critical workers. Commissioner argued that comparables should include options outside the immediate neighborhood to lower prices further. Mr. Harris clarified that the city council retains discretion to set a higher reduction.
  • Impact on Existing Homeowners: Multiple commissioners worried that new homes sold at a depressed price would serve as comparables for nearby existing homes, lowering their property values. Mr. Harris and Brittany countered that the deed restriction and overlay would differentiate these homes from standard market homes, and appraisers would account for that. However, commissioners noted the lack of clear evidence that this would protect current homeowners.
  • Enforcement and Deed Restrictions: Questions arose about who would enforce the owner-occupancy and equity gain restrictions. The proposal suggests HOA or city enforcement; commissioners noted the need for a housing authority or clear mechanism. Mr. Harris said deed restrictions would be enforced through title companies and mortgage industry requirements.
  • Profit and Incentive: Commissioners questioned why developers do not already pass on density savings to homebuyers. Mr. Harris replied that costs (land, labor, materials) have risen faster than prices, and builders operate on 6–10% margins. He argued that the overlay is a tool to fix land cost upfront and share savings, and that he feels a moral obligation to address the housing crisis.
  • Alternatives: Some commissioners suggested alternative approaches, such as requiring owner occupancy citywide or limiting home footprints in certain zones to naturally reduce prices. The Provo model (city-owned land with affordable housing) was mentioned as more transparent.
• Commissioner Deliberation: Most commissioners expressed openness to the concept but deep reservations about the practical impacts on existing homeowners, enforcement complexity, and lack of clarity. One commissioner favored trying the overlay on a small city-owned parcel first. Another noted the proposal does not address the 75% of residents who are current homeowners and value their homes on market price.

Key Outcomes

• No Recommendation Made: The commission did not take a vote or reach a formal recommendation by the end of the meeting. The discussion was left open, with several commissioners indicating they need more information and clarity before deciding.
• Action Items: Commissioners requested further research on how deed-restricted homes are treated as comparables, the feasibility of enforcement, and potential impacts on property values. They also suggested drafting alternative language for comparables and possibly limiting the overlay to smaller pilot projects.
• Next Steps: The item may be brought back at a future meeting for continued deliberation. City staff and Mr. Harris were asked to address outstanding concerns in writing.