Accessory Dwelling Units

Utah’s housing market is evolving, and with it, the way residents utilize their existing square footage. Whether to accommodate multi-generational living or to provide a solution for the state's housing shortage, Accessory Dwelling Units (ADUs) have become a vital part of the local real estate conversation.

For many years, the intersection of HOA rules and property modifications was a gray area. However, recent shifts in Utah law have clarified the boundaries, creating a more predictable framework for both residents and community boards.

Are All ADUs Allowed in an HOA?

No. State law mandates that Internal Accessory Dwelling Units (IADUs) be allowed, unless certain exceptions apply. Detached Accessory Dwelling Units (DADUs), however, can be prohibited by an HOA, even if state law or municipal ordinances otherwise allow them. If a homeowner wants to construct a DADU on their lot, they will need to review and comply with the terms of their governing documents.

So let’s talk about IADUs.

Defining the IADU: What Qualifies?

An Internal Accessory Dwelling Unit is a self-contained living space located entirely within the primary structure of a home. The defining characteristic of an IADU is that it does not alter the home's external footprint.

• Common Examples: Finished basement apartments, converted attics, or integrated suites over a garage.
• What it isn’t: A detached tiny home, a mother-in-law cottage in the backyard, or any structure requiring a new foundation.

While the Utah Community Association Act provides the legal authority to create these units, the technical definitions—such as square footage requirements or ceiling heights—are governed by your specific city or county codes.

The Legal Framework: HOA Authority and State Precedence

If an HOA’s governing documents contain a blanket prohibition against IADUs, those rules may no longer be enforceable. In Utah, state legislation takes precedence over individual HOA restrictive covenants regarding internal units.

Under Sections 57-8a-209(10) and 57-8a-218(16) of the Community Association Act, an HOA may not enact or enforce - either in the rules or the CC&Rs - a provision that prohibits a lot owner from constructing an IADU within the owner’s residential lot. This requirement applies regardless of when an HOA's original governing documents were written.

The Compliance Standard: Four Pillars of Safety

The right to build an IADU is not absolute, however; it is contingent upon strict adherence to public safety standards. An HOA cannot arbitrarily block a project, but a homeowner must ensure the unit meets four critical government criteria:

1. Local Land Use Ordinances: Zoning and density requirements.
2. Building Codes: Structural integrity and proper construction.
3. Health Codes: Sanitation and safe water access.
4. Fire Codes: Safe egress points and fire-rated separations.

By centering the approval process on these objective safety standards, the law ensures that new units contribute to the community's value without compromising the neighborhood's safety.

Managing Rentals and Rules: A Guide for Boards

One of the most common points of friction in an HOA is the rental cap. However, Section 57-8a-209 of the Community Association Act provides a specific carve-out: an association generally cannot prohibit the rental of an IADU that complies with the safety codes listed above.

To avoid legal complications, it is essential that Board Members recognize the hierarchy of documents set out in Section 57-8a-228(5). When a conflict arises, the order of authority is as follows:

• Utah Community Association Act
• Utah Revised Nonprofit Corporation Act
• CC&Rs and Plat
• Articles of Incorporation or other organizational documents
• Bylaws
• Rules and Policies

Strategic Tip for Boards: If your governing documents conflict with current state mandates, updating them now is a proactive way to avoid the reasonable-judgment disputes described in Section 57-8a-213 of the Community Association Act and reduce potential conflicts within the community. In the meantime, any provision of your community’s governing documents that conflicts with state law may be unenforceable against a homeowner.

Looking Ahead: A Balanced Community

The integration of IADUs represents a path forward for Utah communities to grow while maintaining their aesthetic character. These units allow for increased density and housing flexibility without the visual impact of new construction. Clear communication and a thorough understanding of the law ensure that Utah neighborhoods remain vibrant, compliant, and ready for the future.