The bill (SB 271) as written would override an ordinance passed by the Park City Council last year that restricted co-owned homes to specific areas of the city. Other resort communities like Moab have shown interest in similar regulations.
A Park City staff legislative update to the city council said the bill likely came at the request of industry players.
Fractional homes are offered by online companies like Pacaso, which helps people buy portions of multi-million dollar homes — from ½ to ⅛. Pacaso sets up an LLC and then acts as the property manager.
Park City Manager Matt Dias told the city council at a meeting Thursday he thinks lawmakers are increasingly encouraged to take away local control.
“I had a tough premonition the other day that I just feel like this is the year that if it can go wrong, it will go wrong. I think just with the economy still super strong... people are just emboldened," Dias said.
"They are particularly emboldened in the areas of land use, and taking away land use control from cities and towns.”
The city’s planning commission and council worked on the fractional ownership rules for months following debate and community input about the impact of heavily-used vacation homes on residential neighborhoods.
Many Park City residents accused fractional homes of being timeshares, but the local ordinance rejected that claim.
When the ordinance passed in October 2022, Pacaso co-founder and CEO Austin Allison called it a “big step forward,” as the company said Park City was the first place in the country to legally define co-ownership of homes and regulate its use.
“Pacaso strongly supports property rights and the Utah Senate Bill 271, which empowers people to co-own homes without interference from local government," a Pacaso spokesperson said Tuesday.
"We believe that governments should not infringe on the basic right of individuals, friends, or families to acquire, own, and use a home together.”
Under the proposed bill, HOAs could still regulate fractional ownership.
The bill is sponsored by Republican Sen. Mike McKell of Spanish Fork. McKell did not immediately respond to a request for comment Tuesday.
