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S.B. 230 Enrolled

                 

REDEVELOPMENT AGENCY AMENDMENT

                 
2000 GENERAL SESSION

                 
STATE OF UTAH

                 
Sponsor: John L. Valentine

                  AN ACT RELATING TO SPECIAL DISTRICTS; DEFINING EDUCATION HOUSING
                  DEVELOPMENT; AUTHORIZING REDEVELOPMENT AGENCIES TO ENGAGE IN
                  EDUCATION HOUSING DEVELOPMENT; MODIFYING THE MAKEUP OF THE TAXING
                  AGENCY COMMITTEE UNDER CERTAIN CIRCUMSTANCES; ALLOWING SCHOOL
                  DISTRICTS TO CHOOSE NOT TO LOSE TAX INCREMENT FUNDS UNDER CERTAIN
                  CIRCUMSTANCES; AND MAKING TECHNICAL CHANGES.
                  This act affects sections of Utah Code Annotated 1953 as follows:
                  AMENDS:
                      17A-2-1202, as last amended by Chapter 320, Laws of Utah 1995
                      17A-2-1203, as last amended by Chapter 50, Laws of Utah 1993
                      17A-2-1204, as repealed and reenacted by Chapter 50, Laws of Utah 1993
                      17A-2-1205, as last amended by Chapter 50, Laws of Utah 1993
                      17A-2-1206, as last amended by Chapter 249, Laws of Utah 1996
                      17A-2-1207, as repealed and reenacted by Chapter 50, Laws of Utah 1993
                      17A-2-1209, as repealed and reenacted by Chapter 50, Laws of Utah 1993
                      17A-2-1220, as last amended by Chapter 50, Laws of Utah 1993
                      17A-2-1222, as last amended by Chapter 249, Laws of Utah 1996
                      17A-2-1225, as last amended by Chapter 249, Laws of Utah 1996
                      17A-2-1230, as last amended by Chapter 50, Laws of Utah 1993
                      17A-2-1236, as last amended by Chapter 50, Laws of Utah 1993
                      17A-2-1247.5, as last amended by Chapters 21 and 194, Laws of Utah 1999
                      17A-2-1263, as enacted by Chapter 50, Laws of Utah 1993
                      17A-2-1264, as enacted by Chapter 279, Laws of Utah 1998
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 17A-2-1202 is amended to read:


                       17A-2-1202. Definitions.
                      As used in this part:
                      (1) "Agency" means the legislative body of a community when designated by the legislative
                  body itself to act as a redevelopment agency.
                      (2) "Base tax amount" means that portion of taxes that would be produced by the rate upon
                  which the tax is levied each year by or for all taxing agencies upon the total sum of the taxable value
                  of the taxable property in a redevelopment project area as shown upon the assessment roll used in
                  connection with the taxation of the property by the taxing agencies, last equalized before the effective
                  date of the:
                      (a) ordinance approving the plan for projects for which a preliminary plan has been prepared
                  prior to April 1, 1993, and for which all of the following have occurred prior to July 1, 1993: the
                  agency blight study has been completed, and a hearing under Section 17A-2-1221 has in good faith
                  been commenced by the agency; or
                      (b) the first approved project area budget for projects for which a preliminary plan has been
                  prepared after April 1, 1993, and for which any of the following have occurred after July 1, 1993: the
                  completion of the agency blight study, and the good faith commencement of the hearing by the
                  agency under Section 17A-2-1221 ; and
                      (c) as adjusted by Sections 17A-2-1250.5 , 17A-2-1251 , 17A-2-1252 , and 17A-2-1253 .
                      (3) "Blighted area" or "blight" means:
                      (a) for projects for which a preliminary plan has been prepared prior to April 1, 1993, and
                  for which all of the following have occurred prior to July 1, 1993: the agency blight study has been
                  completed, and a hearing under Section 17A-2-1221 has in good faith been commenced by the
                  agency, an area used or intended to be used for residential, commercial, industrial, or other purposes
                  or any combination of such uses which is characterized by two or more of the following factors:
                      (i) defective design and character of physical construction;
                      (ii) faulty interior arrangement and exterior spacing;
                      (iii) high density of population and overcrowding;
                      (iv) inadequate provision for ventilation, light, sanitation, open spaces, and recreation

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                  facilities;
                      (v) age, obsolescence, deterioration, dilapidation, mixed character, or shifting of uses;
                      (vi) economic dislocation, deterioration, or disuse, resulting from faulty planning;
                      (vii) subdividing and sale of lots of irregular form and shape and inadequate size for proper
                  usefulness and development;
                      (viii) laying out of lots in disregard of the contours and other physical characteristics of the
                  ground and surrounding conditions;
                      (ix) existence of inadequate streets, open spaces, and utilities; and
                      (x) existence of lots or other areas which are subject to being submerged by water.
                      (b) For projects for which a preliminary plan has been prepared after April 1, 1993, and for
                  which any of the following have occurred after July 1, 1993: the completion of the agency blight
                  study, and the good faith commencement of the hearing by the agency under Section 17A-2-1221 ,
                  when a finding of blight is required, an area with buildings or improvements, used or intended to be
                  used for residential, commercial, industrial, or other urban purposes or any combination of these uses,
                  which:
                      (i) contains buildings and improvements, not including out-buildings, on at least 50% of the
                  number of parcels and the area of those parcels is at least 50% of the project area; and
                      (ii) is unfit or unsafe to occupy or may be conducive to ill health, transmission of disease,
                  infant mortality, juvenile delinquency, or crime because of any three or more of the following factors:
                      (A) defective character of physical construction;
                      (B) high density of population and overcrowding;
                      (C) inadequate provision for ventilation, light, sanitation, and open spaces;
                      (D) mixed character and shifting of uses which results in obsolescence, deterioration, or
                  dilapidation;
                      (E) economic deterioration or continued disuse;
                      (F) lots of irregular form and shape and inadequate size for proper usefulness and
                  development, or laying out of lots in disregard of the contours and other physical characteristics of
                  the ground and surrounding conditions;

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                      (G) existence of inadequate streets, open spaces, and utilities;
                      (H) existence of lots or other areas which are subject to being submerged by water; and
                      (I) existence of any hazardous or solid waste defined as any substance defined, regulated, or
                  listed as "hazardous substances," "hazardous materials," "hazardous wastes," "toxic waste,"
                  "pollutant," "contaminant," or "toxic substances," or identified as hazardous to human health or the
                  environment under state or federal law or regulation.
                      (c) For purposes of Subsection (3)(b), if a developer involved in the project area
                  redevelopment [or], economic, or education housing development causes any of the factors of blight
                  listed in Subsection (3)(b)(ii), the developer-caused blight may not be used as one of the three
                  required elements of blight. Notwithstanding the provisions of this section, any blight caused by
                  owners or tenants who may become developers under the provisions of Section 17A-2-1214 shall not
                  be subject to this Subsection (3)(c).
                      (4) "Bond" means any bonds, notes, interim certificates, debentures, or other obligations
                  issued by an agency.
                      (5) "Community" means a city, county, town, or any combination of these.
                      (6) "Economic development" means the planning or replanning, design or redesign,
                  development or redevelopment, construction or reconstruction, rehabilitation, business relocation or
                  any combination of these, within all or part of a project area and the provision of office, industrial,
                  manufacturing, warehousing, distribution, parking, public or other facilities, or improvements as may
                  benefit the state or the community in order for a public or private employer to create additional jobs
                  within the state.
                      (7) "Education housing development" means to provide high density housing adjacent to a
                  public or private institution of higher education.
                      [(7)] (8) "Federal government" means the United States or any of its agencies or
                  instrumentalities.
                      [(8)] (9) "Legislative body" means the city council, city commission, county legislative body,
                  or other legislative body of the community.
                      [(9)] (10) "Planning commission" means a city, town, or county planning commission

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                  established pursuant to law or charter.
                      [(10)] (11) "Project area" or "redevelopment project area" means an area of a community
                  within a designated redevelopment survey area, the redevelopment of which is necessary to eliminate
                  blight or provide economic or education housing development and which is selected by the
                  redevelopment agency pursuant to this part.
                      [(11)] (12) "Project area budget" means, for projects for which a preliminary plan has been
                  prepared after April 1, 1993, and for which any of the following have occurred after July 1, 1993: the
                  completion of the agency blight study, and the good faith commencement of the hearing by the
                  agency under Section 17A-2-1221 , a multiyear budget for the redevelopment plan prepared by the
                  redevelopment agency showing:
                      (a) the base year taxable value of the project area;
                      (b) the projected tax increment of the project area, including the amount of any tax increment
                  shared with other taxing districts which shall include:
                      (i) the tax increment expected to be used to implement the redevelopment plan including the
                  estimated amount of tax increment to be used for land acquisition, public, and infrastructure
                  improvements, and loans, grants, or tax incentives to private and public entities; and
                      (ii) the total principal amount of bonds expected to be issued by the redevelopment agency
                  to finance the project;
                      (c) the tax increment expected to be used to cover the cost of administering the project area
                  plan;
                      (d) a legal description for the portion of the project area from which tax increment will be
                  collected pursuant to Section 17A-2-1247.5 , if the area from which tax increment is to be collected
                  is less than the entire project area; and
                      (e) for properties to be sold, the expected total cost of the property to the agency and the
                  expected sales price to be paid by the purchaser.
                      [(12)] (13) "Public body" means the state, or any city, county, district, authority, or any other
                  subdivision or public body of the state, their agencies, instrumentalities, or political subdivisions.
                      [(13)] (14) (a) "Redevelopment" means the planning, development, replanning, redesign,

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                  clearance, reconstruction, or rehabilitation, or any combination of these, of all or part of a project
                  area, and the provision of residential, commercial, industrial, public, or other structures or spaces that
                  are appropriate or necessary to eliminate blight in the interest of the general welfare, including
                  recreational and other facilities incidental or appurtenant to them.
                      (b) "Redevelopment" includes:
                      (i) the alteration, improvement, modernization, reconstruction, or rehabilitation, or any
                  combination of these, of existing structures in a project area;
                      (ii) provision for open space types of use, such as streets and other public grounds and space
                  around buildings, and public or private buildings, structures and improvements, and improvements
                  of public or private recreation areas and other public grounds; and
                      (iii) the replanning or redesign or original development of undeveloped areas as to which
                  either of the following conditions exist:
                      (A) the areas are stagnant or improperly utilized because of defective or inadequate street
                  layout, faulty lot layout in relation to size, shape, accessibility, or usefulness, or for other causes; or
                      (B) the areas require replanning and land assembly for reclamation or development in the
                  interest of the general welfare.
                      [(14)] (15) "Redevelopment plan" means a plan developed by the agency and adopted by
                  ordinance of the governing body of a community to guide and control redevelopment [and], economic
                  development, and education housing development undertakings in a specific project area.
                      [(15)] (16) "Redevelopment survey area" or "survey area" means an area of a community
                  designated by resolution of the legislative body or the governing body of the agency for study by the
                  agency to determine if blight exists if redevelopment is planned, and if a redevelopment [or],
                  economic development, or education housing development project or projects within the area are
                  feasible.
                      [(16)] (17) "Taxes" include all levies on an ad valorem basis upon land, real property,
                  personal property, or any other property, tangible or intangible.
                      [(17)] (18) "Taxing agencies" mean the public entities, including the state, any city, county,
                  city and county, any school district, special district, or other public corporation, which levy property

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                  taxes within the project area.
                      [(18)] (19) "Tax increment" means that portion of the levied taxes each year in excess of the
                  base tax amount which excess amount is to be paid into a special fund of an agency.
                      Section 2. Section 17A-2-1203 is amended to read:
                       17A-2-1203. Creation of redevelopment agencies -- Governing body -- Powers --
                  Contiguous communities.
                      (1) Any community may, by ordinance, create a redevelopment agency and shall designate
                  the legislative body of the community as the governing body of the agency.
                      (2) Any agency may:
                      (a) enter into contracts generally;
                      (b) provide for redevelopment and economic development as provided in this part;
                      (c) transact other business and exercise all other powers provided for in this part;
                      (d) accept financial or other assistance from any public or private source for the agency's
                  activities, powers, and duties, and expend any funds so received for any of the purposes of this part;
                  and
                      (e) borrow money or accept financial or other assistance from the state or the federal
                  government for any of the purposes of this part and comply with any conditions of such loan or grant.
                      (3) (a) By ordinance the legislative body of a community may authorize redevelopment [or],
                  economic development, or education housing development activities in a project area within its
                  territorial limits by another community if the project area is contiguous to the other community.
                      (b) The ordinance shall designate which community shall undertake the redevelopment [or],
                  economic development, or education housing development.
                      (c) The community authorized to undertake the redevelopment [or], economic development,
                  or education housing development may act in all respects as if the project area were within its
                  territorial limits and its legislative body, agency, and planning commission shall have all the rights,
                  powers, privileges, and tax increment with respect to the project area as if it were within the territorial
                  limits of the community so authorized.
                      (d) Any redevelopment plan for the project area shall be approved by ordinance enacted by

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                  the legislative body of the authorizing community.
                      Section 3. Section 17A-2-1204 is amended to read:
                       17A-2-1204. Redevelopment survey areas.
                      (1) Redevelopment survey areas shall be designated by resolution of the governing body of
                  the agency.
                      (2) Any person, a group, association, or corporation may in writing request the legislative
                  body or the agency to designate a redevelopment survey area or areas for project study purposes and
                  may submit with their request plans showing the proposed redevelopment [or], economic
                  development, or education housing development of the areas or any part or parts thereof.
                      (3) The resolution designating a redevelopment survey area or areas shall contain the
                  following:
                      (a) a finding that the area requires study to determine if a project or projects within the area
                  are feasible; and
                      (b) a description or a map of the boundaries of the area designated.
                      Section 4. Section 17A-2-1205 is amended to read:
                       17A-2-1205. Preconditions for designating a project area.
                      Before any area is designated for redevelopment [or], economic development, or education
                  housing development, the community authorized to undertake the development shall:
                      (1) have a planning commission; and
                      (2) have a general plan as required by law.
                      Section 5. Section 17A-2-1206 is amended to read:
                       17A-2-1206. Selection of project areas -- Blight hearing.
                      (1) On the agency's own motion, at the direction of the legislative body, or upon the written
                  petition of a majority of the owners in fee of any proposed redevelopment survey area, excluding
                  publicly owned areas or areas dedicated to a public use, the agency may select one or more project
                  areas comprising all or part of the proposed survey area and formulate a preliminary plan for the
                  redevelopment [or], economic development, or education housing development of each project area
                  in cooperation with the planning commission of the community.

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                      (2) (a) For redevelopment plans required to find blight under Subsection 17A-2-1202 (3)(b),
                  the agency shall conduct a public hearing for the purpose of making a finding of blight.
                      (b) The property owner shall be given a reasonable opportunity to prepare for the blight
                  hearing.
                      (c) For purposes of this section "reasonable opportunity to prepare" shall include the
                  opportunity to review the agency's evidence of blight, including any expert reports or expected expert
                  testimony. Property owners shall be given at least 30 days to prepare for the hearing.
                      (3) During the blight hearing required by this section, the agency shall:
                      (a) present evidence of the elements of blight listed in Section 17A-2-1202 ;
                      (b) permit examination and cross-examination by the property owner or the property owner's
                  representative of the agency's evidence or experts; and
                      (c) hear and consider evidence and expert testimony concerning the elements of blight
                  presented by the property owners or their representative.
                      (4) For redevelopment plans required to find blight under Subsection 17A-2-1202 (3)(b) for
                  which a preliminary plan has been prepared after April 1, 1993, and for which any of the following
                  have occurred after July 1, 1993: the completion of the agency blight study, and the good faith
                  commencement of the hearing by the agency under Section 17A-2-1221 , the agency shall hold at least
                  one public hearing within 45 days after designation of a project area to inform the public about the
                  proposed project area and to allow public input into the agency deliberations on designating a project
                  area.
                      (5) The hearings required in Subsections (2) and (4) may be combined. If they are not
                  combined the agency shall give the property owners notice of the blight study and the possibility that
                  the area will be declared blighted in accordance with Subsection 17A-2-1222 (2)(e).
                      Section 6. Section 17A-2-1207 is amended to read:
                       17A-2-1207. Contents of preliminary plan.
                      Each preliminary plan shall:
                      (1) describe the boundaries of the project area;
                      (2) contain a general statement of the land uses, layout of principal streets, population

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                  densities, and building intensities and standards proposed as the basis for the redevelopment [or],
                  economic development, or education housing development of the project area;
                      (3) show how the purposes of this part would be attained by the redevelopment [or],
                  economic development, or education housing development;
                      (4) show that the proposed redevelopment [or], economic development, or education housing
                  development conforms to the master or general community plan;
                      (5) for redevelopment projects that conduct a blight study and are subject to the definition
                  of blight under Subsection 17A-2-1202 (3)(b), contain a description of the way in which the
                  redevelopment will reduce or eliminate any finding of blight in the project area;
                      (6) for projects for which a preliminary plan has been prepared after April 1, 1993, and for
                  which any of the following have occurred after July 1, 1993: the completion of the agency blight
                  study, and the good faith commencement of the hearing by the agency under Section 17A-2-1221 ,
                  contain a description of the specific project or projects that are the object of the proposed
                  redevelopment [or], economic development, or education housing development, if any; and
                      (7) for projects for which a preliminary plan has been prepared after April 1, 1993, and for
                  which any of the following have occurred after July 1, 1993: the completion of the agency blight
                  study, and the good faith commencement of the hearing by the agency under Section 17A-2-1221 ,
                  identify the way in which private developers, if any, will be selected to undertake the redevelopment
                  [or], economic development, or education housing development and identify any developers who are
                  currently involved in the proposed redevelopment [or], economic development, or education housing
                  development.
                      Section 7. Section 17A-2-1209 is amended to read:
                       17A-2-1209. Use of eminent domain.
                      (1) Except when acquiring property from an officer or member pursuant to Section
                  17A-2-1239 , eminent domain may not be used by an agency in a project area where one of the
                  purposes of the plan is economic development or education housing development and the project area
                  has not been found to be blighted as defined in Sections 17A-2-1202 and 17A-2-1208 .
                      (2) Before any agency may exercise the power of eminent domain, the agency shall:

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                      (a) negotiate with the affected property owner in good faith and provide evidence of those
                  negotiations;
                      (b) explain to the affected property owner and occupant in writing the eminent domain power
                  and the procedures and reasons for exercising it;
                      (c) explain to the affected property owner and occupant his right to just compensation and
                  how he may obtain it; and
                      (d) explain to the affected property owner and occupant his right to receive aid to relocate
                  as provided in Title 57, Chapter 12.
                      Section 8. Section 17A-2-1220 is amended to read:
                       17A-2-1220. Report to accompany plan.
                      (1) Each project area redevelopment plan shall be accompanied by a report containing:
                      (a) the reasons for the selection of the project area;
                      (b) a description of the physical, social, and economic conditions existing in the area;
                      (c) a financial analysis of the proposed redevelopment describing the proposed method of
                  financing the redevelopment of the project area in sufficient detail so that the legislative body may
                  determine the economic feasibility of the plan. The report shall contain to the extent known, the items
                  specified for a "project area budget" in Section 17A-2-1202 and a description of any tax incentives
                  offered private entities for facilities located in the project area;
                      (d) a method or plan for the relocation of families and persons to be temporarily or
                  permanently displaced from housing facilities, if any, in the project area;
                      (e) an analysis of the preliminary plan;
                      (f) whenever a finding of blight is required under this part for projects for which a preliminary
                  plan has been prepared after April 1, 1993, and for which any of the following have occurred after
                  July 1, 1993: the completion of the agency blight study, and the good faith commencement of the
                  hearing by the agency under Section 17A-2-1221 , an analysis in accordance with Subsection (2)
                  showing that the adoption of the plan is necessary and appropriate to reduce or eliminate the blight,
                  or if blight is not found, is beneficial under a benefit analysis to provide economic development or
                  education housing development; and

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                      (g) the report and recommendations of the planning commission.
                      (2) The analysis of necessary and appropriate in the case of blight, or the benefit analysis in
                  the event of economic development or education housing development shall consider the following
                  factors:
                      (a) a description of the benefit of financial assistance or other public subsidy, if any, proposed
                  to be provided by the agency including:
                      (i) an evaluation of the reasonableness of economic development, education housing
                  development, or redevelopment costs;
                      (ii) efforts to maximize private investment;
                      (iii) rationale for use of tax increment financing including an analysis of whether the proposed
                  development might reasonably be expected to occur in the forseeable future solely through private
                  investment; and
                      (iv) an estimate of the total amount and length of time that tax increment financing will be
                  expended in undertaking economic development, education housing development, or redevelopment;
                      (b) a description of the anticipated public benefit to be derived from the economic
                  development, education housing development, or redevelopment project including:
                      (i) the number of jobs or employment anticipated as a result of the economic development,
                  education housing development, or redevelopment project;
                      (ii) associated business and economic activity likely to be stimulated by the economic
                  development, education housing development, or redevelopment project; and
                      (iii) the beneficial influences upon the tax base of the community as a result of the economic
                  development, education housing development, or redevelopment project; and
                      (c) other factors approved by the agency.
                      (3) The agency shall make the report available to the general public at its offices during
                  normal business hours and shall publish a notice pursuant to Section 17A-2-1222 in a newspaper of
                  general circulation in the county that the report is available for inspection at its offices.
                      Section 9. Section 17A-2-1222 is amended to read:
                       17A-2-1222. Notices of hearing required.

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                      (1) (a) Notice of the public hearing on a project area redevelopment plan shall be given by
                  publication not less than once a week for four successive weeks in a newspaper of general circulation
                  published in the county in which the land lies.
                      (b) The published notice shall:
                      (i) describe specifically the boundaries of the proposed redevelopment, education housing
                  development, or economic development project area; and
                      (ii) state the day, hour, and place in which persons objecting to the proposed project area
                  redevelopment plan, denying the findings or existence of blight in the proposed project area, or
                  denying the regularity of any of the proceedings, may appear before the legislative body and show
                  cause why the proposed plan should not be adopted.
                      (2) (a) For redevelopment plans for which a redevelopment plan has been adopted on or after
                  January 1, 1997, the agency shall publish notice of the hearing on the proposed project area budget
                  one or more times.
                      (b) The notice under Subsection (2)(a) shall be published at least seven days before the public
                  hearing date.
                      (c) The agency shall place an advertisement for the public hearing on the proposed project
                  area budget in a newspaper that:
                      (i) is of the general circulation in the community; and
                      (ii) to the extent practicable, is of general interest and readership in the community and not
                  of limited subject matter.
                      (d) The notice shall not be placed in the portion of the newspaper where legal notices and
                  classified advertisements appear.
                      (e) The notice shall be a display advertisement and, except as provided in Subsection
                  17A-2-1247.5 (3)(c), shall include the following statement:
                      "NOTICE OF BUDGET HEARING FOR (NAME OF PROJECT AREA)
                      The (name of redevelopment agency) has requested $________ in property tax revenues that
                  will be generated by development within the (name of redevelopment project area) to fund a portion
                  of project costs within the (name of redevelopment project area). These property tax revenues will

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                  be used for the following: (list major budget categories and amounts). These property taxes will be
                  taxes levied by the following governmental entities, and, assuming current tax rates, the taxes
                  collected and allocated to this project area from each taxing entity will be as follows: (list
                  governmental entities levying taxes and the amount of total budget that would be based on the current
                  tax levy of each governmental entity). All of the property taxes to be allocated to the project area
                  are taxes that will be generated only if the project area is developed.
                      All concerned citizens are invited to attend the project area budget hearing scheduled for
                  (date, time, and place of hearing). A copy of the (name of redevelopment project area) project area
                  budget is available at the offices of (name of redevelopment agency and office address)."
                      (f) Other information may be provided in the notice including public purpose and future
                  taxing benefits.
                      (3) The agency shall notify the last-known assessee of each parcel of land in the project area
                  of any public hearing required by this part at least 30 days before the date of the public hearing to the
                  last-known address of the property owner as shown on the last equalized assessment roll. The notice
                  to the property owner shall:
                      (a) be mailed by certified mail for projects for which a preliminary plan has been adopted after
                  July 1, 1993;
                      (b) include the summary of property owners rights in accordance with Section 17A-2-1211 ,
                  for projects for which a preliminary plan has been prepared after April 1, 1993, and for which any of
                  the following have occurred after July 1, 1993: the completion of the agency blight study, and the
                  good faith commencement of the hearing by the agency under Section 17A-2-1221 ;
                      (c) describe specifically the boundaries of the proposed project area;
                      (d) state the day, hour, and place in which persons objecting to the proposed project area or
                  redevelopment plan, denying the existence of blight in the proposed redevelopment project area, if
                  applicable, or denying the regularity of any of the proceedings, may appear before the legislative body
                  and show cause why the proposed project area should not be designated as a project area or why the
                  proposed plan should not be adopted; and
                      (e) for plans required to make a finding of blight under Subsection 17A-2-1202 (3)(b), and

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                  requiring the use of eminent domain, for the public hearings required by Section 17A-2-1206 , the
                  agency shall include in the notice to property owners a statement that:
                      (i) the area is being proposed for possible redevelopment;
                      (ii) the area may be declared blighted; and
                      (iii) the property owner will be notified of each additional public hearing held by the agency
                  on the project area prior to the adoption of the plan.
                      (4) (a) For projects for which a preliminary plan has been prepared after April 1, 1993, and
                  for which any of the following have occurred after July 1, 1993: the completion of the agency blight
                  study, and the good faith commencement of the hearing by the agency under Section 17A-2-1221 ,
                  the agency shall notify the last known assessee of each parcel of land contiguous to the project area
                  of each public hearing at least 30 days before the date of the public hearing to the last-known address
                  of the property owner as shown on the last equalized assessment roll by certified mail.
                      (b) For purposes of this part, "contiguous property" means property with a boundary that
                  touches the boundaries of the project area, or with a boundary within 300 feet of the project area's
                  boundaries.
                      (5) Not less than 30 days prior to the date set for each hearing required by this part, the
                  agency shall give notice by mail to the State Tax Commission, county assessor, county auditor, any
                  taxing agency committee required under Section 17A-2-1247.5 , and the governing body of each of
                  the taxing entities of which taxable property is included in the project area if a taxing agency
                  committee is not yet formed under Section 17A-2-1247.5 . The notice shall include:
                      (a) a description of the boundaries of the proposed project area;
                      (b) a map showing the boundaries of the proposed project area;
                      (c) a statement that a plan for the redevelopment, education housing development, or
                  economic development of the proposed project area is being prepared; and
                      (d) a statement that if the redevelopment plan is adopted and, for projects for which a
                  preliminary plan has been prepared after April 1, 1993, and for which any of the following have
                  occurred after July 1, 1993: the completion of the agency blight study, and the good faith
                  commencement of the hearing by the agency under Section 17A-2-1221 , if the agency obtains the

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                  majority consent of the taxing agency committee to the project area budget, and if the plan provides
                  for a division of tax revenues, then property taxes resulting from increases in valuation above the
                  taxable value as shown on the last equalized assessment roll could be allocated to the agency for
                  redevelopment, education housing development, or economic development purposes, rather than
                  being paid into the treasury of the taxing agency;
                      (e) for projects for which a preliminary plan has been prepared after April 1, 1993, and for
                  which any of the following have occurred after July 1, 1993: the completion of the agency blight
                  study, and the good faith commencement of the hearing by the agency under Section 17A-2-1221 ,
                  state the day, hour, and place for the public hearing at which the approval of the designation of a
                  project area or the redevelopment plan will be considered; and
                      (f) invite each taxing agency to submit comments to the redevelopment agency concerning
                  the subject matter of the hearing prior to the date of the hearing.
                      Section 10. Section 17A-2-1225 is amended to read:
                       17A-2-1225. Adoption, rejection, or modification of plan -- Plan submitted to voters
                  -- When rejection required -- Petition for alternative plan.
                      (1) Once the hearings have been held, the legislative body may proceed to adopt, reject, or
                  modify the project area redevelopment plan. The project area redevelopment plan may not be
                  modified so as to add any real property to the project area without the legislative body holding a new
                  hearing to consider the matter, notice of which shall be given in the same manner as provided in
                  Section 17A-2-1222 .
                      (2) (a) If the owners of 40% of the area of the property included within the project area
                  proposed in the redevelopment plan, excluding property owned by public agencies or dedicated to
                  public use, make objections in writing prior to or at the hearing and the objections are not withdrawn
                  at or prior to the hearing, the plan may not be adopted until the proposition to so adopt the plan has
                  been approved by a majority of the registered voters of the community voting thereon at an election
                  called for this purpose.
                      (b) This election may be held on the same day and with the same election officials as any
                  primary or general election held in the community and shall be held as nearly as practicable in

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                  conformity with the general election laws of the state.
                      (c) Upon the approval by the voters as set forth in Subsection (2)(a), the project area
                  redevelopment plan shall be deemed adopted and the legislative body shall confirm the adoption by
                  ordinance.
                      (3) If the owners of two-thirds of the area of the property included within any project area
                  proposed in the redevelopment plan, excluding property owned by public agencies or dedicated to
                  public use, make objections in writing at or prior to the hearing, the legislative body may not adopt
                  the project, and the proposed project may not be reconsidered by the legislative body for a period of
                  three years.
                      (4) (a) Projects for which a preliminary plan has been prepared after April 1, 1993, and for
                  which any of the following have occurred after July 1, 1993: the completion of the agency blight
                  study, and the good faith commencement of the hearing by the agency under Section 17A-2-1221 ,
                  must adopt a plan within one year after a project area is designated under Section 17A-2-1206 for
                  a redevelopment plan where the purpose is the elimination of blight, and within one year after a
                  preliminary plan is prepared for a redevelopment plan where the purpose is economic development
                  or education housing development.
                      (b) If the plan will be submitted to an election for approval by the registered voters of a
                  community, the time limit for the plan adoption shall be increased by the time between the close of
                  the public hearing held pursuant to Section 17A-2-1221 and the date of the next general election
                  within the community.
                      (5) A majority of the owners of the area of the property included within the project area,
                  excluding property owned by public agencies or dedicated to public use, may file a written petition
                  requesting an alternative preliminary plan be formulated pursuant to Section 17A-2-1211 .
                      Section 11. Section 17A-2-1230 is amended to read:
                       17A-2-1230. Powers of public body aiding and cooperating in redevelopment projects
                  -- Notice requirement.
                      For the purpose of aiding and cooperating in the planning, undertaking, construction, or
                  operation of redevelopment, education housing development, and economic development projects

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                  located within the area in which it is authorized to act, any public body, after 15 days' public notice,
                  may:
                      (1) dedicate, sell, convey, grant, or otherwise dispose or lease any of its property to a
                  redevelopment agency;
                      (2) cause parks, playgrounds, recreational, community, educational, water, sewer or drainage
                  facilities, or any other works which it is otherwise empowered to undertake, to be furnished adjacent
                  to or in connection with redevelopment, education housing development, or economic development
                  projects;
                      (3) furnish, dedicate, close, vacate, pave, install, grade, regrade, plan, or replan streets, roads,
                  roadways, alleys, sidewalks, or other places which it is otherwise empowered to undertake;
                      (4) plan or replan, zone or rezone any part of the area and make any legal exceptions from
                  building regulations and ordinances;
                      (5) enter into agreements with the federal government, the state, an agency, or any other
                  public body respecting action to be taken pursuant to any of the powers granted by this part or any
                  other law, which agreements may extend over any period, notwithstanding any law to the contrary;
                      (6) purchase or legally invest in any of the bonds of an agency and exercise all of the rights
                  of any holder of such bonds;
                      (7) lend, grant, or contribute funds to an agency for a redevelopment, education housing
                  development, or economic development project;
                      (8) purchase, buy, sell, lease, or otherwise acquire or dispose of land in a project area from
                  an agency for redevelopment, education housing development, or economic development in
                  accordance with the plan, and in connection with it, to become obligated to the extent that it is
                  authorized and funds have been made available to make the redevelopment improvements or
                  structures required; and
                      (9) do any and all things necessary to aid or cooperate in the planning or carrying out of a
                  redevelopment, education housing development, or economic development project.
                      Section 12. Section 17A-2-1236 is amended to read:
                       17A-2-1236. Actions on validity or enforceability of bonds -- Time for bringing action.

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                      (1) In any suit, action, or proceeding involving the validity or enforceability of any bond
                  issued under this part or the security for them, any such bond reciting in substance that it has been
                  issued by the agency in connection with an area redevelopment, education housing development, or
                  economic development project shall be conclusively deemed to have been issued for that purpose and
                  the project shall be conclusively deemed to have been planned, located, and carried out in accordance
                  with the provisions of this part.
                      (2) For a period of 30 days after the publication of the resolution authorizing the bonds, or
                  a notice of bonds to be issued by the agency containing those items described in Subsection
                  11-14-21 (3) in a newspaper having general circulation in the area of operation, any person may
                  contest the legality of the resolution authorizing any bonds or any provisions made for the security
                  and payment of the bonds. After the 30-day period no one has any cause of action to contest the
                  regularity, formality, or legality of the bonds for any cause whatsoever.
                      Section 13. Section 17A-2-1247.5 is amended to read:
                       17A-2-1247.5. Tax increment financing -- Project area budget approval -- Payment
                  of additional tax increment.
                      (1) This section applies to projects for which a preliminary plan has been adopted on or after
                  July 1, 1993.
                      (2) (a) (i) A taxing agency committee shall be created for each redevelopment, education
                  housing development, or economic development project. The committee membership shall be selected
                  as follows:
                      [(i)] (A) unless a school district board votes not to appoint representatives under Subsection
                  (2)(a)(ii)(A), two representatives appointed by the school district in the project area;
                      [(ii)] (B) two representatives appointed by resolution of the county commission or county
                  council for the county in which the project area is located;
                      [(iii)] (C) two representatives appointed by resolution of the city or town's legislative body
                  in which the project area is located if the project is located within a city or town;
                      [(iv)] (D) unless a school district board votes not to appoint representatives under Subsection
                  (2)(a)(ii)(A), a representative approved by the State School Board; and

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                      [(v)] (E) one representative who shall represent all of the remaining governing bodies of the
                  other local taxing agencies that levy taxes upon the property within the proposed project area. The
                  representative shall be selected by resolution of each of the governing bodies of those taxing
                  agencies within 30 days after the notice provided in Subsection 17A-2-1256 (3).
                      (ii) (A) A school district that levies a tax on property located within a project area may
                  choose not to appoint representatives to the taxing agency committee under Subsection (2)(a)(i)(A)
                  if:
                      (I) the project area is established under an education housing development project; and
                      (II) the project area budget of the project area under Subsection (2)(a)(ii)(A)(I) is adopted
                  on or after May 1, 2000.
                      (B) If a school district board votes not to appoint representatives to the taxing agency
                  committee under Subsection (2)(a)(ii)(A), the State School Board may not appoint a representative
                  to the taxing agency committee.
                      (b) (i) If the project is located within a city or town, a quorum of a taxing agency committee
                  consists of:
                      (A) if a school district board votes not to appoint representatives to the taxing agency
                  committee under Subsection (2)(a)(ii)(A), three members; or
                      (B) in all other cases, five members.
                      (ii) If the project is not located within a city or town, a quorum consists of:
                      (A) if a school district board votes not to appoint representatives to the taxing agency
                  committee under Subsection (2)(a)(ii)(A), two members; or
                      (B) in all other cases, four members.
                      (c) A taxing agency committee formed in accordance with this section has the authority to:
                      (i) (A) represent all taxing entities in a project area, except a school district whose board has
                  voted under Subsection (2)(a)(ii)(A) not to appoint representatives to the taxing agency committee;
                  and
                      (B) cast votes that will be binding on the governing boards of all taxing entities in a project
                  area that the taxing agency committee represents under Subsection (2)(c)(i)(A);

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                      (ii) negotiate with the agency concerning the redevelopment plan;
                      (iii) approve or disapprove project area budgets under Subsection (3); and
                      (iv) approve an exception to the limits on the value and size of project areas imposed by
                  Section 17A-2-1210 , or the time and amount of tax increment financing under this section.
                      (3) (a)(i) If the project area budget does not allocate 20% of the tax increment for housing
                  as provided in Subsection 17A-2-1264 (2)(a):
                      (A) an agency may not collect any tax increment for a project area until after the agency
                  obtains the majority consent of a quorum of the taxing agency committee for the project area budget;
                  and
                      (B) a project area budget adopted under Subsection (3)(a)(i)(A) may be amended if the
                  agency obtains the majority consent of a quorum of the taxing agency committee.
                      (ii) If the project area budget allocates 20% of the tax increment for housing as provided in
                  Subsection 17A-2-1264 (2)(a):
                      (A) an agency may not collect tax increment from all or part of a project area until after:
                      (I) the Olene Walker Housing Trust Fund Board, established under Title 9, Chapter 4, Part
                  7, Olene Walker Housing Trust Fund, has certified the project area budget as complying with the
                  requirements of Section 17A-2-1264 ; and
                      (II) the agency's governing body has approved and adopted the project area budget by a
                  two-thirds vote; and
                      (B) a project area budget adopted under Subsection (3)(a)(ii)(A) may be amended if:
                      (I) the Olene Walker Housing Trust Fund Board, established under Title 9, Chapter 4, Part
                  7, Olene Walker Housing Trust Fund, certifies the amendment as complying with the requirements
                  of Section 17A-2-1264 ; and
                      (II) the agency's governing body approves and adopts the amendment by a two-thirds vote.
                      (b)Within 30 days after the approval and adoption of a project area budget, each agency shall
                  file a copy of the budget with the county auditor, the State Tax Commission, the state auditor, and
                  each property taxing entity affected by the agency's collection of tax increment under the project area
                  budget.

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                      (c) (i) Beginning on January 1, 1997, before an amendment to a project area budget is
                  approved, the agency shall advertise and hold one public hearing on the proposed change in the
                  project area budget.
                      (ii) The public hearing under Subsection (3)(c)(i) shall be conducted according to the
                  procedures and requirements of Subsection 17A-2-1222 (2), except that if the amended budget
                  allocates a greater proportion of tax increment to a project area than was allocated to the project area
                  under the previous budget, the advertisement shall state the percentage allocated under the previous
                  budget and the percentage allocated under the amended budget.
                      (d) If an amendment is not approved, the agency shall continue to operate under the
                  previously approved, unamended project area budget.
                      (4) (a) [An] Except as provided in Subsections (6) and (8), an agency may collect tax
                  increment from all or a part of a project area. The tax increment shall be paid to the agency in the
                  same manner and at the same time as payments of taxes to other taxing agencies to pay the principal
                  of and interest on loans, moneys advanced to, or indebtedness, whether funded, refunded, assumed,
                  or otherwise, to finance or refinance, in whole or in part, the redevelopment, education housing
                  development, or economic development project and the housing projects and programs under
                  Sections 17A-2-1263 and 17A-2-1264 .
                      (b) (i) An agency may elect to be paid:
                      (A) if 20% of the project area budget is not allocated for housing as provided in Subsection
                  17A-2-1264 (2)(a):
                      (I) 100% of annual tax increment for 12 years; or
                      (II) 75% of annual tax increment for 20 years; or
                      (B) if 20% of the project area budget is allocated for housing as provided in Subsection
                  17A-2-1264 (2)(a):
                      (I) 100% of annual tax increment for 15 years; or
                      (II) 75% of annual tax increment for 24 years.
                      (ii) Tax increment paid to an agency under this Subsection (4)(b) shall be paid for the
                  applicable length of time beginning the first tax year the agency accepts tax increment from a project

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                  area.
                      (c) An agency may receive a greater percentage of tax increment or receive tax increment for
                  a longer period of time than that specified in Subsection (4)(b) if the agency obtains the majority
                  consent of the taxing agency committee.
                      (5) (a) The redevelopment plan shall provide that the portion of the taxes, if any, due to an
                  increase in the tax rate by a taxing agency after the date the project area budget is approved by the
                  taxing agency committee may not be allocated to and when collected paid into a special fund of the
                  redevelopment agency according to the provisions of Subsection (4) unless the taxing agency
                  committee approves the inclusion of the increase in the tax rate at the time the project area budget
                  is approved. If approval of the inclusion of the increase in the tax rate is not obtained, the portion
                  of the taxes attributable to the increase in the rate shall be distributed by the county to the taxing
                  agency imposing the tax rate increase in the same manner as other property taxes.
                      (b) The amount of the tax rate to be used in determining tax increment shall be increased or
                  decreased by the amount of an increase or decrease as a result of:
                      (i) a statute enacted by the Legislature, a judicial decision, or an order from the State Tax
                  Commission to a county to adjust or factor its assessment rate under Subsection 59-2-704 (2);
                      (ii) a change in exemption provided in Utah Constitution Article XIII, Section 2, or Section
                  59-2-103 ;
                      (iii) an increase or decrease in the percentage of fair market value, as defined under Section
                  59-2-102 ; or
                      (iv) a decrease in the certified tax rate under Subsection 59-2-924 (2)(c) or (2)(d)(i).
                      (c) (i) Notwithstanding the increase or decrease resulting from Subsection (5)(b), the amount
                  of money allocated to, and when collected paid to the agency each year for payment of bonds or other
                  indebtedness may not be less than would have been allocated to and when collected paid to the
                  agency each year if there had been no increase or decrease under Subsection (5)(b).
                      (ii) For a decrease resulting from Subsection (5)(b)(iv), the taxable value for the base year
                  under Subsection 17A-2-1202 (2) or 17A-2-1247 (2)(a), as the case may be, shall be reduced for any
                  year to the extent necessary, including below zero, to provide an agency with approximately the same

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                  amount of money the agency would have received without a reduction in the county's certified tax
                  rate if:
                      (A) in that year there is a decrease in the certified tax rate under Subsection 59-2-924 (2)(c)
                  or (2)(d)(i);
                      (B) the amount of the decrease is more than 20% of the county's certified tax rate of the
                  previous year; and
                      (C) the decrease results in a reduction of the amount to be paid to the agency under Section
                  17A-2-1247 or 17A-2-1247.5 .
                      (6) (a) For redevelopment plans first adopted before May 4, 1993, beginning January 1, 1994,
                  all of the taxes levied and collected upon the taxable property in the redevelopment project under
                  Section 59-2-906.1 which are not pledged to support bond indebtedness and other contractual
                  obligations are exempt from the provisions of Subsection (4).
                      (b) For redevelopment plans first adopted after May 3, 1993, beginning January 1, 1994, all
                  of the taxes levied and collected upon the taxable property in the redevelopment project under
                  Section 59-2-906.1 are exempt from the provisions of Subsection (4).
                      (7) (a) In addition to the amounts and periods that an agency may elect to be paid tax
                  increment under Subsection (4)(b), an agency may elect to be paid 100% of annual tax increment for
                  an additional period, as provided in Subsection (7)(b), beyond those periods provided under
                  Subsection (4)(b), without the approval of the taxing agency committee, if the tax increment funding
                  for the additional period is used:
                      (i) for an agency in a city in which is located all or a portion of an interchange on I-15 or that
                  would directly benefit from an interchange on I-15, to pay some or all of the cost of the installation,
                  construction, or reconstruction of:
                      (A) an interchange on I-15; or
                      (B) frontage and other roads connecting to the interchange, as determined by the Department
                  of Transportation created under Section 72-1-201 and the Transportation Commission created under
                  Section 72-1-301 ; or
                      (ii) for an agency in a city of the first class, to pay some or all of the cost of the land for and

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                  installation and construction of a recreational facility, as defined in Subsection 59-12-702 (3), or a
                  cultural facility, including parking and infrastructure improvements related to the recreational or
                  cultural facility.
                      (b) The additional period for which an agency may be paid 100% of annual tax increment
                  under Subsection (7)(a) is an additional:
                      (i) 13 years, for an agency that initially elected to be paid under Subsection (4)(b)(i)(A)(I);
                      (ii) five years, for an agency that initially elected to be paid under Subsection (4)(b)(i)(A)(II);
                      (iii) ten years, for an agency that initially elected to be paid under Subsection (4)(b)(i)(B)(I);
                  and
                      (iv) one year, for an agency that initially elected to be paid under Subsection (4)(b)(i)(B)(II).
                      (c) This Subsection (7) applies only to an agency established by a city in which:
                      (i) for an agency in a city in which is located all or a portion of an interchange on I-15 or that
                  would directly benefit from an interchange on I-15, the installation, construction, or reconstruction
                  of an interchange on I-15 or frontage or other roads connecting to the interchange has begun on or
                  before June 30, 2000; and
                      (ii) for an agency in a city of the first class, the installation or construction of a recreational
                  facility, as defined in Subsection 59-12-702 (3), or a cultural facility has begun on or before June 30,
                  2000.
                      (d) Notwithstanding any other provision of this Subsection (7), a school district may not
                  receive less tax increment because of application of the other provisions of this Subsection (7) than
                  it would have received without those provisions.
                      (8) If a school district board votes not to appoint representatives to the taxing agency
                  committee under Subsection (2)(a)(ii)(A), all of the taxes levied and collected upon taxable property
                  in the redevelopment project by the school district are exempt from Subsection (4) and the agency
                  may not collect tax increment from taxes levied by the school district in the project area.
                      Section 14. Section 17A-2-1263 is amended to read:
                       17A-2-1263. Housing funds.
                      (1) Tax increment paid to an agency under Section 17A-2-1247 or 17A-2-1247.5 from one

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                  project area may be used to pay all or part of the value of the land for and the cost of installation,
                  construction, and rehabilitation of any building, facility, structure, or other housing improvement,
                  including infrastructure improvements related to housing located in one or more project areas.
                      (2) Notwithstanding any provisions of this part, a maximum of 20% of tax increment under
                  Sections 17A-2-1247 and 17A-2-1247.5 may be used by an agency outside of project areas for the
                  purpose of replacing housing units lost by redevelopment, education housing development, and
                  economic development, or increasing, improving, and preserving the community's supply of
                  affordable housing generally.
                      (3) The funds allocated under this section shall be held by the agency in a separate account
                  of the special fund of the redevelopment agency designated as the housing fund until used. The
                  housing fund, together with any interest earned by the fund, and any payments or repayments made
                  to the agency for loans, advances, or grants of any kind from the fund shall accrue to and be
                  deposited in the housing fund to be used to increase, improve, and preserve the supply of housing
                  within project areas and affordable housing within the boundaries of the community or used to
                  effectuate any purposes of redevelopment, education housing development, or economic development
                  in the project area from which the funds originated.
                      (4) Expenditures or obligations incurred by the agency under this section shall constitute an
                  indebtedness incurred by an agency.
                      (5) An agency may lend, grant, or contribute funds from the housing fund to a person, public
                  body, housing authority, private entity or business, or nonprofit corporation for housing purposes as
                  defined in this section.
                      (6) For purposes of this section, "affordable housing" means housing to be owned or
                  occupied by persons and families of low or moderate income as determined by resolution of the
                  agency.
                      Section 15. Section 17A-2-1264 is amended to read:
                       17A-2-1264. Affordable housing funds under redevelopment plans adopted on or after
                  July 1, 1998.
                      (1) As used in this section:

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                      (a) "Affordable housing" has the meaning as defined under Subsection 17A-2-1263 (6).
                      (b) "Annual income" has the meaning as defined under regulations of the U.S. Department
                  of Housing and Urban Development, 24 CFR, Part 813, as amended or as superseded by replacement
                  regulations.
                      (c) "Board" means the Olene Walker Housing Trust Fund Board, established under Title 9,
                  Chapter 4, Part 7, Olene Walker Housing Trust Fund.
                      (d) "Fair share ratio" means the ratio derived by:
                      (i) for a city or town, comparing the percentage of all housing units within the city or town
                  that are publicly subsidized income targeted housing units to the percentage of all housing units                   within
                  the whole county that are publicly subsidized income targeted housing units; or
                      (ii) for the unincorporated part of a county, comparing the percentage of all housing units
                  within the unincorporated county that are publicly subsidized income targeted housing units to the
                  percentage of all housing units within the whole county that are publicly subsidized income targeted
                  housing units.
                      (e) "Family" has the meaning as defined under regulations of the U.S. Department of Housing
                  and Urban Development, 24 CFR, Part 813, as amended or as superseded by replacement regulations.
                      (f) "Housing funds" means the funds allocated in the project area budget under Subsection
                  (2)(a) for the purposes provided in Subsection (3).
                      (g) "Income targeted housing" means housing to be owned or occupied by a family whose
                  annual income is at or below 80% of the median annual income for the county in which the housing
                  is located.
                      (h) "Unincorporated" means not within a city or town.
                      (2) (a) A project area budget for a redevelopment plan that is adopted on or after July 1,
                  1998, may allocate 20% of the tax increment funds payable to the agency over the life of the
                  redevelopment plan for use as provided in Subsection (3).
                      (b) Before an agency may adopt a project area budget that allocates 20% of tax increment
                  funds under Subsection (2)(a), the board shall certify the project area budget to be in compliance with
                  the requirements of this section.

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                      (c) (i) If an agency fails to provide housing funds in accordance with the certified project area
                  budget, the board may bring legal action to compel the agency to provide the housing funds.
                      (ii) In an action under Subsection (2)(c)(i), the court:
                      (A) shall award the board a reasonable attorney's fee, unless the court finds that the action
                  was frivolous; and
                      (B) may not award the agency its attorney's fees, unless the court finds that the action was
                  frivolous.
                      (3) (a) Each agency shall use all housing funds allocated under Subsection (2)(a) to:
                      (i) pay part or all of the cost of land or construction of income targeted housing within the
                  community that created the agency, if practicable in a mixed income development or area;
                      (ii) pay part or all of the cost of rehabilitation of income targeted housing within the
                  community that created the agency;
                      (iii) pay part or all of the cost of land or installation, construction, or rehabilitation of any
                  building, facility, structure, or other housing improvement, including infrastructure improvements,
                  related to housing located in a redevelopment project area where blight has been found to exist;
                      (iv) replace housing units lost as a result of the redevelopment, education housing, or
                  economic development;
                      (v) make payments on or establish a reserve fund for bonds:
                      (A) issued by the agency, the community, or the housing authority that provides income
                  targeted housing within the community; and
                      (B) all or part of the proceeds of which are used within the community for the purposes
                  stated in Subsections (3)(a)(i), (ii), (iii), or (iv); or
                      (vi) if the community's fair share ratio at the time of the first adoption of the project area
                  budget is at least 1.1 to 1.0, make payments on bonds:
                      (A) that were previously issued by the agency, the community, or the housing authority that
                  provides income targeted housing within the community; and
                      (B) all or part of the proceeds of which were used within the community for the purposes
                  stated in Subsections (3)(a)(i), (ii), (iii), or (iv).

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                      (b) As an alternative to the requirements of Subsection (3)(a), an agency may pay all housing
                  funds to:
                      (i) the community for use as provided under Subsection (3)(a);
                      (ii) the housing authority that provides income targeted housing within the community for
                  use in providing income targeted housing within the community; or
                      (iii) the Olene Walker Housing Trust Fund, established under Title 9, Chapter 4, Part 7,
                  Olene Walker Housing Trust Fund, for use in providing income targeted housing within the
                  community.
                      (4) The agency or community shall hold the housing funds, together with all interest earned
                  by the housing funds and all payments or repayments for loans, advances, or grants from the housing
                  funds, in a separately designated account until the funds are used pursuant to this section.
                      (5) In using housing funds under Subsection (3)(a), an agency may lend, grant, or contribute
                  housing funds to a person, public body, housing authority, private entity or business, or nonprofit
                  organization for use as provided in Subsection (3)(a).
                      (6) An agency may:
                      (a) issue bonds from time to time to finance a housing undertaking under this section,
                  including the payment of principal and interest upon advances for surveys and plans or preliminary
                  loans; and
                      (b) issue refunding bonds for the payment or retirement of bonds under Subsection (6)(a)
                  previously issued by the agency.
                      (7) Expenditures or obligations incurred by an agency under this section shall constitute an
                  indebtedness incurred by the agency.

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