A bill expected in the January 2027 legislative session would create a statewide "starter home overlay zone" that lets builders construct 1,000- to 1,400-square-foot houses by right, potentially bypassing Sandy's development agreement process and local zoning controls.

Steve Waldrip, senior advisor for housing strategy to Gov. Spencer Cox, announced the proposal at the ULI Utah Housing Summit the week of Aug. 11.

"One of the policy priorities we have for this coming year is to create a statewide starter home zone, where — anywhere in the state, in every city — you have a place where you can just go build small homes on small lots, without going through development agreements, without spending hundreds of thousands of dollars on legal fees," Waldrip told the conference crowd, according to Building Salt Lake.

The framework would allow homes built on pre-approved floor plans, on approved lot sizes, in approved locations within a city. A companion element could create pre-approved housing plans to streamline permitting. Specific lot-size parameters are still being discussed.

Rep. Ray Ward, R-Bountiful, is the expected legislative sponsor. The Utah League of Cities and Towns planned to meet with Ward the week of Aug. 18 to begin discussions. ULCT Executive Director Cameron Diehl said the league had not yet been in formal talks on the bill.

What it means for Sandy

Sandy currently relies on development agreements to encourage affordable housing. The city offers incentives to developers in exchange for deed-restricted units. Under Waldrip's framing, the proposed state bill would let qualifying builders skip that process.

Dustin Fratto, Sandy City Council Office executive director, described the city's own by-right development agreement concept as "the self-checkout lane" at a March 10 council presentation, comparing it to a streamlined checklist approach. The state bill would impose a similar framework statewide, removing the city's discretion over which projects qualify.

The city council adopted its "Building Our Future" housing strategy on March 24, which envisions balancing neighborhood character with expanding the housing stock. Single-family homes make up 75% of Sandy's housing, according to the Sandy Journal's coverage of the plan. Sandy is also in the middle of a comprehensive rewrite of its Land Development Code, the first major update in nearly 20 years.

The tension is already visible locally. A 4-3 council vote on March 10 to rezone a single-family property near 8600 South and 1000 East for higher-density townhomes drew neighbor opposition over parking, safety and neighborhood character.

Affordability pressure

Median single-family home prices in Sandy range from $560,857 in the 84070 zip code to $860,000 in 84092, according to the Salt Lake Board of Realtors' second-quarter 2026 data reported by KSL. Countywide, the median hit a record $645,000.

Opt-in or mandate?

Whether the bill would override local zoning or create an opt-in incentive remains unclear. Lauren Cole, policy manager for Wasatch Advocates for Livable Communities, said her understanding is the bill would create an opt-in overlay zone, not mandate smaller lot sizes. But she warned that approach "risks cities simply not opting in at the rate Utah needs."

Ward's track record on housing reform at the Legislature has been rocky. His 2025 bills allowing ADUs statewide and homes on 6,000-square-foot lots both failed in committee. His 2026 bill, HB184, which would have let residents request exceptions to local building regulations, was rejected 3-6 by the House Economic Development and Workforce Services Committee on Feb. 25. The Utah League of Cities and Towns opposed that bill, saying it "fundamentally interferes with the authority of city councils."

Sandy officials have not commented publicly on the proposal as of Aug. 18. The Utah Legislature convenes in January 2027. Residents can contact their council members or submit input through the city's ongoing Land Development Code rewrite.