Prohibition on Local Ordinances Restricting Co-Ownership Models Act

Prior to task force meetings, ALEC posts these legislative member-submitted draft model policies to our website. The draft model policies are then discussed, debated, and voted on by ALEC task force members. Policies that receive final approval by legislators on the ALEC Board of Directors become official ALEC model policy. Draft model policies that fail to become official ALEC model policy are removed from the website.

Policy Status

  • Type: Model Policy
  • Status: Draft
  • Date Introduced: July 23, 2026

Task Forces

  • Commerce, Insurance and Economic Development

    • Tags

  • 2026 Annual Meeting

    • Summary

    This model policy affirms private property owners’ rights by prohibiting county and local governments from enacting laws that regulate co-owned homes differently than other residential properties. 
    Draft

    Prohibition on Local Ordinances Restricting Co-Ownership Models Act

    WHEREAS, the General Assembly finds that the public policy of this State favors the property rights of citizens and the transferability of interests in real property free from unreasonable restraints; and 

    WHEREAS, Section [ ], Article [ ] of the [STATE] Constitution acknowledges that the property of the people of this State is a matter of public concern; and 

    WHEREAS, residential properties with co-ownership structures should not be unreasonably infringed upon by unnecessary and burdensome restrictions. 

    Section 1. Short Title 

    Home Ownership Requirements.  

    Section 2. Findings and Intent. 

    1. The legislature has the highest interest in protecting private property rights. 
    2. The legislature’s intent is to ensure that residential property ownership structures established by the State are not treated differently. 

    Section 3. Definitions.  

    As used in [sections 1 through X], unless the context or subject matter clearly requires otherwise, the following definitions apply: 

    1.  “Co-owned home” means any residential unit that is jointly owned, in any manner or form, by any combination of individuals or entities. 
    2. “Residential dwelling” means the same as that term is defined in Section [state statute]. 

    Section 4. 

    1. Notwithstanding Section [state statute] and Subsection [state statute], a municipal legislative body may not: 
      • (a) adopt or enforce a land use regulation that regulates co-owned homes differently than other residential units; or 
      • (b) use a land use regulation governing co-owned homes to fine, charge, prosecute, or otherwise punish an individual solely for the act of owning or using a co-owned home. 
    2. Notwithstanding Subsection (1), a legislative body may adopt and enforce land use regulations, if the regulations are applied equally to all residential units, including co-owned homes. 
    3. This section does not limit associations from adopting rules or regulations governing co-owned homes. 

    Section 5. Limitations on Property Use Restrictions – Exceptions. 

    1. Nothing in this section limits a municipality’s authority to adopt or enforce regulations regarding: 
      • (a) accessory dwelling units, as defined in Section [State statute]; 
      • (b) internal accessory dwelling units, as defined in Section [State statute]; or 
      • (c) the rental of a residential unit for fewer than 30 days consistent with Section [State statute]. 

    Section 6. Enforcement