1     
AFFORDABLE HOUSING REVISIONS

2     
2016 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Rebecca P. Edwards

5     
Senate Sponsor: Todd Weiler

6     

7     LONG TITLE
8     General Description:
9           This bill modifies provisions related to the Public Transit District Act.
10     Highlighted Provisions:
11          This bill:
12          ▸      defines terms;
13          ▸     requires public transit districts to adopt transit-oriented development policies that
14     include affordable housing; and
15          ▸     makes technical changes.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          None
20     Utah Code Sections Affected:
21     AMENDS:
22          17B-2a-802, as last amended by Laws of Utah 2011, Chapter 146
23          17B-2a-804, as last amended by Laws of Utah 2014, Chapter 377
24     

25     Be it enacted by the Legislature of the state of Utah:
26          Section 1. Section 17B-2a-802 is amended to read:
27          17B-2a-802. Definitions.
28          As used in this part:
29          (1) "Affordable housing" means housing occupied or reserved for occupancy by
30     households that meet certain gross household income requirements based on the area median
31     income for households of the same size.
32          (a) "Affordable housing" may include housing occupied or reserved for occupancy by
33     households that meet specific area median income targets or ranges of area median income
34     targets.
35          (b) "Affordable housing" does not include housing occupied or reserved for occupancy
36     by households with gross household incomes that are more than 60% of the area median
37     income for households of the same size.
38          [(1)] (2) "Appointing entity" means the person, county, unincorporated area of a
39     county, or municipality appointing a member to a public transit district board of trustees.
40          [(2)] (3) (a) "Chief executive officer" means a person appointed by the board of
41     trustees to serve as chief executive officer.
42          (b) "Chief executive officer" shall enjoy all the rights, duties, and responsibilities
43     defined in Sections 17B-2a-810 and 17B-2a-811 and includes all rights, duties, and
44     responsibilities assigned to the general manager but prescribed by the board of trustees to be
45     fulfilled by the chief executive officer.
46          [(3)] (4) "Department" means the Department of Transportation created in Section
47     72-1-201.
48          [(4)] (5) (a) "General manager" means a person appointed by the board of trustees to
49     serve as general manager.
50          (b) "General manager" shall enjoy all the rights, duties, and responsibilities defined in
51     Sections 17B-2a-810 and 17B-2a-811 prescribed by the board of trustees.
52          [(5)] (6) (a) "Locally elected public official" means a person who holds an elected
53     position with a county or municipality.
54          (b) "Locally elected public official" does not include a person who holds an elected
55     position if the elected position is not with a county or municipality.
56          (7) "Metropolitan planning organization" means the same as that term is defined in
57     Section 72-1-208.5.
58          [(6)] (8) "Multicounty district" means a public transit district located in more than one
59     county.
60          [(7)] (9) "Operator" means a public entity or other person engaged in the transportation
61     of passengers for hire.
62          [(8)] (10) "Public transit" means the transportation of passengers only and their
63     incidental baggage by means other than:
64          (a) chartered bus;
65          (b) sightseeing bus; or
66          (c) taxi.
67          [(9)] (11) "Transit facility" means a transit vehicle, transit station, depot, passenger
68     loading or unloading zone, parking lot, or other facility:
69          (a) leased by or operated by or on behalf of a public transit district; and
70          (b) related to the public transit services provided by the district, including:
71          (i) railway or other right-of-way;
72          (ii) railway line; and
73          (iii) a reasonable area immediately adjacent to a designated stop on a route traveled by
74     a transit vehicle.
75          [(10) "Transit-oriented development" means a mixed-use residential or commercial
76     area that is designed to maximize access to public transit.]
77          (12) "Transit-oriented development" means a mixed use residential or commercial area
78     that is designed to maximize access to public transit and includes the development of land
79     owned by a public transit district that serves a county of the first class.
80          (13) "Transit-supportive development" means a mixed use residential or commercial
81     area that is designed to maximize access to public transit and does not include the development
82     of land owned by a public transit district.
83          [(11)] (14) "Transit vehicle" means a passenger bus, coach, railcar, van, or other
84     vehicle operated as public transportation by a public transit district.
85          Section 2. Section 17B-2a-804 is amended to read:
86          17B-2a-804. Additional public transit district powers.
87          (1) In addition to the powers conferred on a public transit district under Section
88     17B-1-103, a public transit district may:
89          (a) provide a public transit system for the transportation of passengers and their
90     incidental baggage;
91          (b) notwithstanding Subsection 17B-1-103(2)(g) and subject to Section 17B-2a-817,
92     levy and collect property taxes only for the purpose of paying:
93          (i) principal and interest of bonded indebtedness of the public transit district; or
94          (ii) a final judgment against the public transit district if:
95          (A) the amount of the judgment exceeds the amount of any collectable insurance or
96     indemnity policy; and
97          (B) the district is required by a final court order to levy a tax to pay the judgment;
98          (c) insure against:
99          (i) loss of revenues from damage to or destruction of some or all of a public transit
100     system from any cause;
101          (ii) public liability;
102          (iii) property damage; or
103          (iv) any other type of event, act, or omission;
104          (d) acquire, contract for, lease, construct, own, operate, control, or use:
105          (i) a right-of-way, rail line, monorail, bus line, station, platform, switchyard, terminal,
106     parking lot, or any other facility necessary or convenient for public transit service; or
107          (ii) any structure necessary for access by persons and vehicles;
108          (e) (i) hire, lease, or contract for the supplying or management of a facility, operation,
109     equipment, service, employee, or management staff of an operator; and
110          (ii) provide for a sublease or subcontract by the operator upon terms that are in the
111     public interest;
112          (f) operate feeder bus lines and other feeder or ridesharing services as necessary;
113          (g) accept a grant, contribution, or loan, directly through the sale of securities or
114     equipment trust certificates or otherwise, from the United States, or from a department,
115     instrumentality, or agency of the United States;
116          (h) study and plan transit facilities in accordance with any legislation passed by
117     Congress;
118          (i) cooperate with and enter into an agreement with the state or an agency of the state
119     or otherwise contract to finance to establish transit facilities and equipment or to study or plan
120     transit facilities;
121          (j) issue bonds as provided in and subject to Chapter 1, Part 11, Local District Bonds,
122     to carry out the purposes of the district;
123          (k) from bond proceeds or any other available funds, reimburse the state or an agency
124     of the state for an advance or contribution from the state or state agency;
125          (l) do anything necessary to avail itself of any aid, assistance, or cooperation available
126     under federal law, including complying with labor standards and making arrangements for
127     employees required by the United States or a department, instrumentality, or agency of the
128     United States;
129          (m) sell or lease property;
130          (n) assist in or operate transit-oriented or transit-supportive developments;
131          (o) establish, finance, participate as a limited partner or member in a development with
132     limited liabilities in accordance with Subsection (1)(p), construct, improve, maintain, or
133     operate transit facilities, equipment, and transit-oriented developments or transit-supportive
134     developments; and
135          (p) subject to the restriction in Subsection (2), assist in a transit-oriented development
136     or a transit-supportive development in connection with economic development or community
137     development as defined in Section 17C-1-102 by:
138          (i) investing in a project as a limited partner or a member, with limited liabilities; or
139          (ii) subordinating an ownership interest in real property owned by the public transit
140     district.
141          (2) (a) A public transit district may only assist in the [economic] development of areas
142     under Subsection (1)(p):
143          (i) in the manner described in Subsection (1)(p)(i) or (ii); and
144          (ii) on no more than eight transit-oriented developments or transit-supportive
145     developments selected by the board of trustees.
146          (b) A public transit district may not invest in a transit-oriented development or
147     transit-supportive development as a limited partner or other limited liability entity under the
148     provisions of Subsection (1)(p)(i), unless the partners, developer, or other investor in the entity,
149     makes an equity contribution equal to no less than 25% of the appraised value of the property
150     to be contributed by the public transit district.
151          (c) (i) For transit-oriented development projects, a public transit district shall adopt
152     transit-oriented development policies and guidelines that include provisions on affordable
153     housing.
154          (ii) For transit-supportive development projects, a public transit district shall work with
155     the metropolitan planning organization and city and county governments where the project is
156     located to collaboratively seek to create joint plans for the areas within one-half mile of transit
157     stations, including plans for affordable housing.
158          [(c)] (d) A current board member of a public transit district to which the board member
159     is appointed may not have any interest in the transactions engaged in by the public transit
160     district pursuant to Subsection (1)(p)(i) or (ii), except as may be required by the board
161     member's fiduciary duty as a board member.
162          (3) A public transit district may be funded from any combination of federal, state,
163     local, or private funds.
164          (4) A public transit district may not acquire property by eminent domain.




Legislative Review Note
Office of Legislative Research and General Counsel