UT HB0510

Requires applicants seeking to incorporate a preliminary municipality to engage in 18 months of good faith coordination with the county before filing a feasibility request, including submitting land use applications or development agreements and attempting to reach mutually agreeable solutions

Extends feasibility study timelines from 90 to 120 days for draft submission and from 120 to 180 days for completion, while requiring consultants to rely on objective, area-specific data from the preceding 10 years

Mandates that proposed preliminary municipalities include at least 10% affordable housing, 10% open space, and limits short-term rentals to no more than 30% of all housing units

Requires applicants to post a bond or letter of credit guaranteeing completion of system infrastructure within 6 years, with forfeiture to the county or town if not completed, plus an improvement warranty of up to 10% of estimated completion costs

Authorizes the lieutenant governor to charge a $50,000 fee for feasibility requests and requires public information sessions following feasibility studies, with the pilot program for preliminary municipality incorporation ending January 1, 2031