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H.B. 24

             1     

REVISIONS TO REDEVELOPMENT AGENCY

             2     
LAWS

             3     
2002 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Wayne A. Harper

             6      This act modifies the Redevelopment Agencies Act by making minor changes and technical
             7      corrections throughout the act. The act resolves internal inconsistencies and makes related
             8      changes within the redevelopment agencies code relating to plan hearings, survey areas,
             9      owner participation, relocation plan requirements, time limits for use of tax increment,
             10      benefit analysis, and publication requirements. The act amends the requirements for blight
             11      findings when expanding a redevelopment project.
             12      This act affects sections of Utah Code Annotated 1953 as follows:
             13      AMENDS:
             14          17B-4-102, as enacted by Chapter 133, Laws of Utah 2001
             15          17B-4-201, as enacted by Chapter 133, Laws of Utah 2001
             16          17B-4-302, as enacted by Chapter 133, Laws of Utah 2001
             17          17B-4-402, as enacted by Chapter 133, Laws of Utah 2001
             18          17B-4-403, as enacted by Chapter 133, Laws of Utah 2001
             19          17B-4-406, as enacted by Chapter 133, Laws of Utah 2001
             20          17B-4-407, as enacted by Chapter 133, Laws of Utah 2001
             21          17B-4-411, as enacted by Chapter 133, Laws of Utah 2001
             22          17B-4-603, as enacted by Chapter 133, Laws of Utah 2001
             23          17B-4-702, as enacted by Chapter 133, Laws of Utah 2001
             24          17B-4-703, as enacted by Chapter 133, Laws of Utah 2001
             25          17B-4-705, as enacted by Chapter 133, Laws of Utah 2001
             26          17B-4-802, as enacted by Chapter 133, Laws of Utah 2001
             27          17B-4-1001, as enacted by Chapter 133, Laws of Utah 2001


             28          17B-4-1002, as enacted by Chapters 103 and 133, Laws of Utah 2001
             29          17B-4-1004, as enacted by Chapter 133, Laws of Utah 2001
             30          17B-4-1007, as enacted by Chapter 133, Laws of Utah 2001
             31          17B-4-1010, as enacted by Chapter 133, Laws of Utah 2001
             32      Be it enacted by the Legislature of the state of Utah:
             33          Section 1. Section 17B-4-102 is amended to read:
             34           17B-4-102. Definitions.
             35          (1) "Agency" means a separate body corporate and politic, created under Section
             36      17B-4-201 or previous law, that is a political subdivision of the state, that is created to undertake
             37      or promote redevelopment, economic development, or education housing development, or any
             38      combination of them, as provided in this chapter, and whose geographic boundaries are
             39      coterminous with:
             40          (a) for an agency created by a county, the unincorporated area of the county; and
             41          (b) for an agency created by a city or town, the boundaries of the city or town.
             42          (2) "Assessment property owner" or "assessment owner of property" means the owner of
             43      real property as shown on the assessment roll of the county in which the property is located,
             44      equalized as of the previous November 1.
             45          (3) "Assessment roll" has the meaning as defined in Section 59-2-102 .
             46          (4) "Base taxable value" means the taxable value of the property within a project area from
             47      which tax increment will be collected, as shown upon the assessment roll last equalized before:
             48          (a) for a pre-July 1, 1993 project area plan, the effective date of the project area plan; or
             49          (b) for a post-June 30, 1993 project area plan:
             50          (i) the date of the taxing entity committee's approval of the first project area budget; or
             51          (ii) if no taxing entity committee approval is required for the project area budget, the later
             52      of:
             53          (A) the date the project area plan is adopted by the community legislative body; and
             54          (B) the date the agency adopts the first project area budget.
             55          (5) "Blight" or "blighted" means the condition of an area that meets the requirements of
             56      Subsection 17B-4-604 (1).
             57          (6) "Blight hearing" means a public hearing under Subsection 17B-4-601 (3) and Section
             58      17B-4-603 regarding the existence or nonexistence of blight within the proposed redevelopment


             59      project area.
             60          (7) "Blight study" means a study to determine the existence or nonexistence of blight
             61      within a survey area as provided in Section 17B-4-602 .
             62          (8) "Board" means the governing body of an agency, as provided in Section 17B-4-203 .
             63          (9) "Budget hearing" means the public hearing on a draft project area budget required
             64      under Subsection 17B-4-501 (2)(e).
             65          (10) "Community" means a county, city, or town.
             66          (11) "Economic development" means to promote the creation or retention of public or
             67      private jobs within the state through:
             68          (a) planning, design, development, construction, rehabilitation, business relocation, or any
             69      combination of these, within part or all of a project area; and
             70          (b) the provision of office, industrial, manufacturing, warehousing, distribution, parking,
             71      public, or other facilities, or other improvements that benefit the state or a community.
             72          (12) "Education housing development" means the provision of high density housing within
             73      a project area that is adjacent to a public or private institution of higher education.
             74          (13) "Plan hearing" means the public hearing on a draft project area plan required under
             75      Subsection 17B-4-402 (1)(e).
             76          (14) "Post-June 30, 1993 project area plan" means a redevelopment, economic
             77      development, or education housing development project area plan adopted on or after July 1, 1993,
             78      whether or not amended subsequent to its adoption.
             79          (15) "Pre-July 1, 1993 project area plan" means a redevelopment project area plan adopted
             80      before July 1, 1993, whether or not amended subsequent to its adoption.
             81          (16) "Private," with respect to real property, means:
             82          (a) not owned by the United States or any agency of the federal government, a public
             83      entity, or any other governmental entity; and
             84          (b) not dedicated to public use.
             85          (17) "Project area" means the geographic area described in a project area plan or draft
             86      project area plan where the redevelopment, economic development, or education housing
             87      development set forth in the project area plan or draft project area plan takes place or is proposed
             88      to take place.
             89          (18) "Project area budget" means a multiyear projection of annual or cumulative revenues


             90      and expenses and other fiscal matters pertaining to a redevelopment, economic development, or
             91      education housing development project area that includes:
             92          (a) the base taxable value of property in the project area;
             93          (b) the projected tax increment expected to be generated within the project area;
             94          (c) the amount of tax increment expected to be shared with other taxing entities;
             95          (d) the amount of tax increment expected to be used to implement the project area plan,
             96      including the estimated amount of tax increment to be used for land acquisition, public
             97      improvements, infrastructure improvements, and loans, grants, or other incentives to private and
             98      public entities;
             99          (e) the tax increment expected to be used to cover the cost of administering the project area
             100      plan;
             101          (f) if the area from which tax increment is to be collected is less than the entire project
             102      area, a legal description of the portion of the project area from which tax increment will be
             103      collected; and
             104          (g) for property that the agency owns and expects to sell, the expected total cost of the
             105      property to the agency and the expected selling price.
             106          (19) "Project area plan" means a written plan under Part 4, Project Area Plan, that, after
             107      its effective date, guides and controls the redevelopment, economic development, or education
             108      housing development activities within the project area.
             109          (20) "Property tax" includes privilege tax and each levy on an ad valorem basis on tangible
             110      or intangible personal or real property.
             111          (21) "Public entity" means:
             112          (a) the state, including any of its departments or agencies; or
             113          (b) a political subdivision of the state, including a county, city, town, school district,
             114      special district, local district, or interlocal cooperation entity.
             115          (22) "Public input hearing" means the public hearing required under Subsection
             116      17B-4-402 (1)(h)(ii) regarding a proposed redevelopment project.
             117          (23) "Record property owner" or "record owner of property" means the owner of real
             118      property as shown on the records of the recorder of the county in which the property is located and
             119      includes a purchaser under a real estate contract if the contract is recorded in the office of the
             120      recorder of the county in which the property is located or the purchaser gives written notice of the


             121      real estate contract to the agency.
             122          (24) "Redevelopment" means the development activities under a project area plan within
             123      a redevelopment project area, including:
             124          (a) planning, design, development, demolition, clearance, construction, rehabilitation, or
             125      any combination of these, of part or all of a project area;
             126          (b) the provision of residential, commercial, industrial, public, or other structures or
             127      spaces, including recreational and other facilities incidental or appurtenant to them;
             128          (c) altering, improving, modernizing, demolishing, reconstructing, or rehabilitating, or any
             129      combination of these, existing structures in a project area;
             130          (d) providing open space, including streets and other public grounds and space around
             131      buildings;
             132          (e) providing public or private buildings, infrastructure, structures, and improvements; and
             133          (f) providing improvements of public or private recreation areas and other public grounds.
             134          (25) "Survey area" means an area designated by a survey area resolution for study to
             135      determine whether one or more redevelopment projects within the area are feasible.
             136          (26) "Survey area resolution" means a resolution adopted by the agency board under
             137      Subsection 17B-4-401 (1)(a) designating a survey area.
             138          (27) (a) "Tax increment" means, except as provided in Subsection (27)(b), the difference
             139      between:
             140          (i) the amount of property tax revenues generated each tax year by all taxing entities from
             141      the area within a project area designated in the project area plan as the area from which tax
             142      increment is to be collected, using the current assessed value of the property; and
             143          (ii) the amount of property tax revenues that would be generated from that same area using
             144      the base taxable value of the property.
             145          (b) "Tax increment" does not include taxes levied and collected under Section 59-2-906.1
             146      on or after January 1, 1994 upon the taxable property in the project area unless:
             147          (i) the project area plan was adopted before May 4, 1993, whether or not the project area
             148      plan was subsequently amended; and
             149          (ii) the taxes were pledged to support bond indebtedness or other contractual obligations
             150      of the agency.
             151          (28) "Taxing entity" means a public entity that levies a tax on property within a project


             152      area or proposed project area.
             153          (29) "Taxing entity committee" means a committee representing the interests of taxing
             154      entities, created as provided in Section 17B-4-1002 .
             155          (30) "Trust fund board" means the Olene Walker Housing Trust Fund Board, established
             156      under Title 9, Chapter 4, Part 7, Olene Walker Housing Trust Fund.
             157          Section 2. Section 17B-4-201 is amended to read:
             158           17B-4-201. Creation of agency -- Certification of incorporation -- Notice of creation.
             159          (1) Subject to Subsection (2), a community may, by ordinance adopted by its legislative
             160      body, create an agency.
             161          (2) (a) Within ten days after adopting [a resolution] an ordinance under Subsection (1),
             162      the community legislative body shall cause a notice of the adoption of the [resolution] ordinance,
             163      with a copy of the [resolution] ordinance, to be filed with the lieutenant governor.
             164          (b) Within ten days after receiving the notice under Subsection (2)(a), the lieutenant
             165      governor shall issue a certificate of incorporation for the agency and send a copy of the certificate
             166      to the community legislative body.
             167          (c) Upon the lieutenant governor's issuance of the certificate of incorporation, the agency
             168      is created and incorporated.
             169          (3) Within 20 days after the issuance of the certificate of incorporation, the agency shall
             170      cause a notice of the agency's creation and incorporation, with a copy of the certificate of
             171      incorporation attached, to be filed with the State Tax Commission and the state auditor.
             172          Section 3. Section 17B-4-302 is amended to read:
             173           17B-4-302. Agency property exempt from levy and execution sale -- Judgment
             174      against community or agency.
             175          (1) (a) All agency property, including funds the agency owns or holds for purposes of this
             176      chapter, are exempt from levy and execution sale, and no execution or judicial process may issue
             177      against agency property. A judgment against an agency may not be a charge or lien upon agency
             178      property.
             179          (b) Subsection (1)(a) does not apply to or limit the right of obligees to pursue any remedies
             180      for the enforcement of any pledge or lien given by an agency on its funds or revenues.
             181          (2) A judgment against the community that created the agency may not be a charge or lien
             182      upon agency property.


             183          (3) A judgment against an agency may not be a charge or lien upon property of the
             184      community that created the agency.
             185          Section 4. Section 17B-4-402 is amended to read:
             186           17B-4-402. Process for adopting project area plan -- Prerequisites -- Restrictions.
             187          (1) In order to adopt a project area plan, after adopting a resolution under Subsection
             188      17B-4-401 (1) the agency shall:
             189          (a) prepare a draft of a project area plan and conduct any examination, investigation, and
             190      negotiation regarding the project area plan that the agency considers appropriate;
             191          (b) request input on the draft project area plan from the planning commission of the
             192      community in which the proposed project area is located;
             193          (c) make the draft project area plan available to the public at the agency's offices during
             194      normal business hours;
             195          (d) provide notice of the plan hearing as provided in Sections 17B-4-702 and 17B-4-704 ;
             196          (e) hold a public hearing on the draft project area plan and, at that public hearing:
             197          (i) allow public comment on:
             198          (A) the draft project area plan; and
             199          (B) whether the draft project area plan should be revised, approved, or rejected; and
             200          (ii) receive all written and hear all oral objections to the draft project area plan;
             201          (f) before holding the plan hearing, provide an opportunity for the State Board of
             202      Education and each taxing entity that levies a tax on property within the proposed project area to
             203      consult with the agency regarding the draft project area plan;
             204          (g) if applicable, hold the election required under Subsection 17B-4-406 (3);
             205          (h) for a redevelopment project area plan:
             206          (i) comply with the requirements of Part 6, Blight Determination in Redevelopment Project
             207      Areas;
             208          (ii) before providing notice of the plan hearing, hold at least one public hearing to:
             209          (A) inform the public about each area being considered for a redevelopment project area;
             210      and
             211          (B) allow public input into agency deliberations on proposing each redevelopment project
             212      area;
             213          (iii) select one or more project areas comprising part or all of the survey area; and


             214          (iv) before sending the first notice to assessment owners of property for a public input
             215      hearing, blight hearing, or combined public input and blight hearing, prepare and adopt guidelines
             216      setting forth and governing the reasonable opportunities of record property owners and tenants to
             217      participate in the redevelopment;
             218          (i) after holding the plan hearing, at the same meeting or at a subsequent meeting consider:
             219          (i) the oral and written objections to the draft project area plan and evidence and testimony
             220      for or against adoption of the draft project area plan; and
             221          (ii) whether to revise, approve, or reject the draft project area plan;
             222          (j) approve the draft project area plan, with or without revisions, as the project area plan
             223      by a resolution that complies with Section 17B-4-407 ; and
             224          (k) submit the project area plan to the community legislative body for adoption.
             225          (2) An agency may not propose a project area plan under Subsection (1) unless the
             226      community in which the proposed project area is located:
             227          (a) has a planning commission; and
             228          (b) has adopted a general plan under:
             229          (i) if the community is a city or town, Title 10, Chapter 9, Part 3, General Plan; or
             230          (ii) if the community is a county, Title 17, Chapter 27, Part 3, General Plan.
             231          (3) (a) Subject to Subsection (3)(b), an agency board may not approve a project area plan
             232      more than one year after:
             233          (i) for a redevelopment project area plan involving the use of eminent domain, adoption
             234      of a resolution making a finding of blight under Subsection 17B-4-601 (4)(b); or
             235          (ii) for an economic development or education housing development project area plan, the
             236      date of the plan hearing.
             237          (b) If a project area plan is submitted to an election under Subsection 17B-4-406 (3), the
             238      time between the plan hearing and the date of the election does not count for purposes of
             239      calculating the year period under Subsection (3)(a).
             240          (4) (a) Except as provided in Subsection (4)(b), a draft project area plan may not be
             241      modified to add real property to the proposed project area unless the board holds [an additional]
             242      a plan hearing to consider the addition and gives notice of the [additional] plan hearing as required
             243      under Sections 17B-4-702 and 17B-4-704 .
             244          (b) The notice and hearing requirements under Subsection (4)(a) do not apply to a draft


             245      project area plan being modified to add real property to the proposed project area if:
             246          (i) the property is[: (A) located within the survey area; and (B)] contiguous to the
             247      property already included in the proposed project area under the draft project area plan; [and]
             248          (ii) the record owner of the property consents to adding the real property to the proposed
             249      project area[.]; and
             250          (iii) for a redevelopment project area, the property is located within the survey area.
             251          Section 5. Section 17B-4-403 is amended to read:
             252           17B-4-403. Project area plan requirements.
             253          (1) Each project area plan and draft project area plan shall:
             254          (a) describe the boundaries of the project area;
             255          (b) contain a general statement of the land uses, layout of principal streets, population
             256      densities, and building intensities of the project area and how they will be affected by the
             257      redevelopment, economic development, or education housing development;
             258          (c) state the standards that will guide the redevelopment, economic development, or
             259      education housing development;
             260          (d) show how the purposes of this chapter will be attained by the redevelopment, economic
             261      development, or education housing development;
             262          (e) be consistent with the general plan of the community in which the project area is
             263      located and show that the redevelopment, economic development, or education housing
             264      development will conform to the community's general plan;
             265          (f) if the agency board made a finding of blight under Subsection 17B-4-601 (4)(b):
             266          (i) describe how the redevelopment will reduce or eliminate blight in the project area; and
             267          (ii) if the agency is to have the power of eminent domain under the project area plan:
             268          [(ii)] (A) provide record owners of property located within the redevelopment project area
             269      and their tenants reasonable opportunities to participate in the redevelopment if the record property
             270      owner or tenant enters into a participation agreement with the agency; [and]
             271          [(iii)] (B) state that the agency has adopted or will adopt guidelines setting forth and
             272      governing the opportunities of record property owners and tenants to participate in the
             273      redevelopment, as required by Subsection 17B-4-402 (1)(h)(iv); and
             274          (C) include a plan for the relocation of any families and persons who will be temporarily
             275      or permanently displaced from housing facilities in the redevelopment project area;


             276          (g) if the project area plan is for economic development, describe how the economic
             277      development will create additional jobs;
             278          (h) if the project area plan is for education housing development, describe how the
             279      education housing development will meet the needs of the community in which the project area
             280      is located;
             281          (i) describe any specific project or projects that are the object of the proposed
             282      redevelopment, economic development, or education housing development;
             283          (j) identify how private developers, if any, will be selected to undertake the redevelopment,
             284      economic development, or education housing development and identify each private developer
             285      currently involved in the redevelopment, economic development, or education housing
             286      development process;
             287          (k) contain a time limit of no more than three years after adoption of the project area plan
             288      for the agency to commence implementation of the project area plan, unless the project area plan
             289      is adopted again as if it were an amended project area plan under Section 17B-4-411 ;
             290          (l) if the project area plan authorizes the use of eminent domain, contain a time limit of
             291      no more than five years after the effective date of the project area plan for the agency to commence
             292      acquisition of property through the use of eminent domain;
             293          (m) if the project area plan provides for tax increment to be paid to the agency:
             294          (i) contain a time limit of no more than 25 years [after adoption of the project area plan]
             295      for tax increment to be paid to the agency from the project area unless the taxing entity committee
             296      consents to a longer period; and
             297          (ii) contain a provision that the project area may not exceed 100 acres of private real
             298      property unless the agency obtains the consent of the taxing entity committee;
             299          (n) state the reasons for the selection of the project area;
             300          (o) describe the physical, social, and economic conditions existing in the project area;
             301          (p) provide a financial analysis describing the proposed method of financing the proposed
             302      redevelopment, economic development, or education housing development;
             303          (q) describe any tax incentives offered private entities for facilities located in the project
             304      area;
             305          [(r) include a plan for the relocation of any families and persons who will be temporarily
             306      or permanently displaced from housing facilities in the project area;]


             307          [(s)] (r) contain the report and state any recommendations of the community's planning
             308      commission;
             309          [(t)] (s) include an analysis, as provided in Subsection (2), of whether adoption of the
             310      project area plan is:
             311          (i) for a redevelopment project area plan, necessary and appropriate to reduce or eliminate
             312      blight; or
             313          (ii) for an economic development or education housing development project area plan,
             314      beneficial under a benefit analysis;
             315          [(u)] (t) if any of the existing buildings or uses in the project area are included in or eligible
             316      for inclusion in the National Register of Historic Places or the State Register, state that the agency
             317      shall comply with Subsection 9-8-404 (1) as though the agency were a state agency; and
             318          [(v)] (u) include other information that the agency determines to be necessary or advisable.
             319          (2) Each analysis under Subsection [(1)(t)] (1)(s)(ii) shall consider:
             320          (a) the benefit of any financial assistance or other public subsidy proposed to be provided
             321      by the agency, including:
             322          (i) an evaluation of the reasonableness of the costs of [redevelopment,] economic
             323      development[,] or education housing development;
             324          (ii) efforts the agency has made or will make to maximize private investment;
             325          (iii) the rationale for use of tax increment, including an analysis of whether the proposed
             326      development might reasonably be expected to occur in the foreseeable future solely through private
             327      investment; and
             328          (iv) an estimate of the total amount of tax increment that will be expended in undertaking
             329      h [ redevelopment, ] h economic development h [ , ] h or education housing development and the
             329a      length of time
             330      for which it will be expended; and
             331          (b) the anticipated public benefit to be derived from the h [ redevelopment, ] h economic
             332      development h [ , ] h or education housing development, including:
             333          (i) the beneficial influences upon the tax base of the community;
             334          (ii) h [ in the case of economic development or education housing development, ] h the
             334a      associated
             335      business and economic activity likely to be stimulated; and
             336          (iii) in the case of economic development, the number of jobs or employment anticipated
             337      to be generated or preserved.


             338          Section 6. Section 17B-4-406 is amended to read:
             339           17B-4-406. Objections to project area plan -- Owners' alternative project area plan
             340      -- Election if 40% of property owners object.
             341          (1) At any time before the plan hearing [or, if applicable, the additional plan hearing under
             342      Subsection 17B-4-402 (4)(a)], any person may file with the agency a written statement of
             343      objections to the draft project area plan.
             344          (2) If the record owners of property of a majority of the private real property included
             345      within the proposed project area file a written petition before or at the plan hearing [or, if
             346      applicable, the additional plan hearing under Subsection 17B-4-402 (4)(a)], proposing an
             347      alternative project area plan, the agency shall consider that proposed plan in conjunction with the
             348      project area plan proposed by the agency.
             349          (3) (a) If the record property owners of at least 40% of the private land area within the
             350      proposed project area object in writing to the draft project area plan before or at the plan hearing
             351      [or, if applicable, the additional plan hearing under Subsection 17B-4-402 (4)(a)] and do not
             352      withdraw their objections, an agency may not approve the project area plan until approved by
             353      voters within the boundaries of the agency in which the proposed project area is located at an
             354      election as provided in Subsection (3)(b).
             355          (b) (i) Except as provided in this section, each election required under Subsection (3)(a)
             356      shall comply with Title 20A, Election Code.
             357          (ii) An election under Subsection (3)(a) may be held on the same day and with the same
             358      election officials as an election held by the community in which the proposed project area is
             359      located.
             360          (iii) If a majority of those voting on the proposed project area plan vote in favor of it, the
             361      project area plan shall be considered approved and the agency shall confirm the approval by
             362      resolution.
             363          (4) If the record property owners of 2/3 of the private land area within the proposed project
             364      area object in writing to the draft project area plan before or at the plan hearing [or, if applicable,
             365      the additional plan hearing under Subsection 17B-4-402 (4)(a)] and do not withdraw their
             366      objections, the project area plan may not be adopted and the agency may not reconsider the project
             367      area plan for three years.
             368          Section 7. Section 17B-4-407 is amended to read:


             369           17B-4-407. Board resolution approving project area plan -- Requirements --
             370      Additional requirements for redevelopment project area plan.
             371          (1) Each board resolution approving a draft redevelopment, economic development, or
             372      education housing development project area plan as the project area plan under Subsection
             373      17B-4-402 (1)(j) shall contain:
             374          (a) a legal description of the boundaries of the project area that is the subject of the project
             375      area plan;
             376          (b) the agency's purposes and intent with respect to the project area;
             377          (c) the project area plan incorporated by reference;
             378          (d) the board findings and determinations that:
             379          (i) there is a need to effectuate a public purpose;
             380          (ii) there is a public benefit under the analysis described in Subsections 17B-4-403 (1)(t)
             381      and (2);
             382          (iii) it is economically sound and feasible to adopt and carry out the project area plan;
             383          (iv) the project area plan conforms to the community's general plan; and
             384          (v) carrying out the project area plan will promote the public peace, health, safety, and
             385      welfare of the community in which the project area is located.
             386          (2) (a) As used in this Subsection (2), "comparable dwellings" means residential housing
             387      facilities that are:
             388          (i) within the project area or in other areas not generally less desirable in regard to public
             389      utilities and public and commercial facilities;
             390          (ii) at rents or prices within the financial means of the families and persons displaced from
             391      the project area; and
             392          (iii) decent, safe, and sanitary and equal in number and available to displaced families and
             393      persons and reasonably accessible to their places of employment.
             394          (b) In addition to the requirements under Subsection (1), each board resolution approving
             395      a redevelopment project area plan shall:
             396          (i) [recite the board's previous] state that the board previously made a finding of blight
             397      within the project area and the date of the board's finding of blight; and
             398          (ii) contain the board's findings and determinations that:
             399          (A) if the use of eminent domain is provided for in the redevelopment project area plan:


             400          (I) the use of eminent domain is or may be necessary to the execution of the redevelopment
             401      project area plan; and
             402          (II) adequate provisions have been made for just compensation for property acquired by
             403      eminent domain; and
             404          (B) if the project area plan may result in the temporary or permanent displacement of any
             405      residential occupants in the project area:
             406          (I) the agency has a feasible method or plan for the relocation of families and persons
             407      displaced from the project area;
             408          (II) comparable dwellings exist or will be provided to the families and persons displaced
             409      by the project area plan; and
             410          (III) the board is satisfied that permanent housing facilities will be available within three
             411      years from the time occupants of the project area are displaced and, pending the development of
             412      these housing facilities, there will be available to the displaced occupants adequate temporary
             413      housing facilities at rents comparable to those in the community at the time of their displacement.
             414          Section 8. Section 17B-4-411 is amended to read:
             415           17B-4-411. Amending the project area plan.
             416          (1) An adopted project area plan may be amended as provided in this section.
             417          (2) If an agency proposes to amend an adopted project area plan to enlarge a project area:
             418          (a) subject to Subsection h [ (2)(c), ] (2)(e), h the requirements under this part that apply to
             418a      adopting a
             419      project area plan apply equally to the proposed amendment as if it were a project area plan[.];
             419a           h (b) FOR A PRE-JULY 1, 1993 PROJECT AREA PLAN, THE BASE YEAR TAXABLE VALUE
             419b      FOR THE NEW AREA ADDED TO THE PROJECT AREA SHALL BE DETERMINED UNDER
             419c      SUBSECTION 17B-4-102(4)(a) USING THE EFFECTIVE DATE OF THE AMENDED PROJECT AREA
             419d      PLAN;
             419e          (c) FOR A POST-JUNE 30, 1993 PROJECT AREA PLAN, THE BASE YEAR TAXABLE VALUE
             419f      FOR THE NEW AREA ADDED TO THE PROJECT AREA SHALL BE DETERMINED UNDER
             419g      SUBSECTION 17B-4-102(4)(b) USING THE DATE OF THE TAXING ENTITY COMMITTEE'S CONSENT
             419h      REFERRED TO IN SUBSECTION (2)(f); h
             420           h [ (b) ] (d) h if the amended plan is to authorize the use of eminent domain within a new area
             420a      to be
             421      added to the project area:
             422          (i) before adopting the amended project area plan the agency must make a finding
             423      regarding the existence of blight in the new area proposed to be added, following the procedures
             424      set forth in Part 6 of this chapter; and


             425          (ii) for the new area added, the time limit of Subsection 17B-4-403 (1)(l) may be measured
             426      from the effective date of the amendment to the project area plan; h [ and
             427          (c)
] (e) h
if the agency made a finding of the existence of blight regarding the project area as
             428      originally adopted:
             429          (i) it is not necessary to repeat the requirements of Part 6 of this chapter for the original
             430      area; and


             431          (ii) regarding the area described in the project area plan as originally adopted, the time
             432      limit established by Subsection 17B-4-403 (1)(l) for the agency to commence acquisition of
             433      property through the use of eminent domain shall not be affected or changed by the amendment
             433a      h ; AND
             433b           (f) FOR A POST-JUNE 30, 1993 PROJECT AREA PLAN, THE AGENCY SHALL OBTAIN THE
             433c      CONSENT OF THE TAXING ENTITY COMMITTEE BEFORE THE AGENCY MAY COLLECT TAX
             433d      INCREMENT FROM THE AREA ADDED TO THE PROJECT AREA h    .
             434          (3) If a proposed amendment does not propose to enlarge a project area, an agency board
             435      may adopt a resolution approving an amendment to an adopted project area plan after:
             436          (a) the agency gives notice, as provided in Section 17B-4-702 , of the proposed amendment
             437      and of the public hearing required by Subsection (3)(b);
             438          (b) the agency board holds a public hearing on the proposed amendment that meets the
             439      requirements of a plan hearing;
             440          (c) the agency obtains the taxing entity committee's consent to the amendment, if the
             441      amendment proposes:
             442          (i) to enlarge the area within the project area from which tax increment is collected; or
             443          (ii) to permit the agency to receive a greater percentage of tax increment or to receive tax
             444      increment for a longer period of time than allowed under the adopted project area plan; and
             445          (iii) for an amendment to a project area plan that was adopted before April 1, 1983, to
             446      expand the area from which tax increment is collected to exceed 100 acres of private real property;
             447      and
             448          (d) the agency obtains the consent of the legislative body or governing board of each
             449      taxing entity affected, if the amendment proposes to permit the agency to receive, from less than
             450      all taxing entities, a greater percentage of tax increment or to receive tax increment for a longer
             451      period of time, or both, than allowed under the adopted project area plan.
             452          (4) (a) Notwithstanding h [ Subsection ] SUBSECTIONS (2)(a) AND h (3) an adopted project
             452a      area plan may be amended
             453      without complying with the notice and public hearing requirements of Subsections h (2)(a) AND h
             453a      (3)(a) and (b)
             454      and without obtaining taxing entity committee approval under Subsection (3)(c)(i) if the
             455      amendment:
             456          (i) makes a minor adjustment in the legal description of a project area boundary requested
             457      by a county assessor or county auditor to avoid inconsistent property boundary lines; or
             458          (ii) subject to Subsection (4)(b), removes a parcel of real property from a project area
             459      because the agency determines that:
             460          (A) the parcel is no longer blighted; or
             461          (B) inclusion of the parcel is no longer necessary or desirable to the project area; and


             462          (b) An amendment removing a parcel of real property from a project area under Subsection
             463      (4)(a)(ii) may not be made without the consent of the record property owner of the parcel being
             464      removed.
             465          (5) (a) An amendment approved by board resolution under this section may not take effect
             466      until adopted by ordinance of the legislative body of the community in which the project area that
             467      is the subject of the project area plan being amended is located.
             468          (b) Upon a community legislative body passing an ordinance adopting an amendment to
             469      a project area plan, the agency whose project area plan was amended shall comply with the
             470      requirements of Section 17B-4-410 to the same extent as if the amendment were a project area
             471      plan.
             472          Section 9. Section 17B-4-603 is amended to read:
             473           17B-4-603. Blight hearing -- Owners may review evidence of blight.
             474          (1) In each hearing required under Subsection 17B-4-601 (3), the agency shall:
             475          (a) permit all evidence of the existence or nonexistence of blight within the proposed
             476      redevelopment project area to be presented; and
             477          (b) permit each record owner of property located within the proposed redevelopment
             478      project area or the record property owner's representative the opportunity to:
             479          (i) examine and cross-examine witnesses providing evidence of the existence or
             480      nonexistence of blight; and
             481          (ii) present evidence and testimony, including expert testimony, concerning the existence
             482      or nonexistence of blight.
             483          (2) The [board] agency shall allow record owners of property located within a proposed
             484      redevelopment project area the opportunity, for at least 30 days before the hearing, to review the
             485      evidence of blight compiled by the agency or by the person or firm conducting the blight study for
             486      the agency, including any expert report.
             487          Section 10. Section 17B-4-702 is amended to read:
             488           17B-4-702. Requirements for notice provided by agency.
             489          (1) The notice required by Section 17B-4-701 shall be given by:
             490          (a) (i) publishing notice, excluding the map referred to in Subsection (2)(b), in a
             491      newspaper of general circulation within the county in which the project area or proposed project
             492      area is located, at least once a week for the four successive weeks immediately preceding the


             493      hearing; or
             494          (ii) if there is no newspaper of general circulation, posting notice in at least three
             495      conspicuous places within the county in which the project area or proposed project area is located;
             496          (b) at least 30 days before the hearing:
             497          (i) sending notice by certified mail to:
             498          (A) each assessment owner of property located within the project area or proposed project
             499      area; and
             500          (B) each assessment owner of property located outside but within 300 feet of the project
             501      area or proposed project area;
             502          (ii) mailing notice to:
             503          (A) the State Tax Commission;
             504          (B) the assessor and auditor of the county in which the project area or proposed project
             505      area is located; and
             506          (C) (I) each member of the taxing entity committee; or
             507          (II) if a taxing entity committee has not yet been formed, the State Board of Education and
             508      the legislative body or governing board of each taxing entity.
             509          (2) The agency shall include in each notice required under Section 17B-4-701 :
             510          (a) a specific description of the boundaries of the project area or proposed project area;
             511          (b) a map of the boundaries of the project area or proposed project area;
             512          (c) an explanation of the purpose of the hearing;
             513          (d) a statement of the date, time, and location of the hearing.
             514          (3) The agency shall include in each notice under Subsection (1)(b)(ii):
             515          (a) a statement that property tax revenues resulting from an increase in valuation of
             516      property within the project area or proposed project area will be paid to the agency for
             517      redevelopment, economic development, or education housing development purposes rather than
             518      to the taxing entity to which the tax revenues would otherwise have been paid if:
             519          (i) a majority of the taxing entity committee consents to the project area budget; and
             520          (ii) the project area plan provides for the agency to receive tax increment; and
             521          (b) an invitation to the recipient of the notice to submit to the agency comments
             522      concerning the subject matter of the hearing before the date of the hearing.
             523          (4) An agency may include in a notice under Subsection (1) any other information the


             524      agency considers necessary or advisable, including the public purpose served by the project and
             525      any future tax benefits expected to result from the project.
             526          Section 11. Section 17B-4-703 is amended to read:
             527           17B-4-703. Additional requirements for notices relating to redevelopment.
             528          (1) The first notice to an assessment owner of property within a proposed redevelopment
             529      project area for a public input hearing, blight hearing, or combined public input and blight hearing
             530      under Subsection 17B-4-801 (1) shall include the statement required by Section 17B-4-902 .
             531          (2) Each notice under Section 17B-4-702 for a blight hearing shall include a statement
             532      that:
             533          (a) a redevelopment project area is being proposed;
             534          (b) the proposed redevelopment project area may be declared to have blight;
             535          (c) the record owner of property within the proposed project area has the right to present
             536      evidence at the blight hearing contesting the existence of blight;
             537          (d) the agency will notify the assessment property [owner] owners referred to in
             538      Subsection 17B-4-702 (1)(b)(i) of each additional public hearing held by the agency concerning the
             539      redevelopment project prior to the adoption of the redevelopment project area plan; and
             540          (e) persons contesting the existence of blight in the proposed redevelopment project area
             541      may appear before the agency board and show cause why the proposed redevelopment project area
             542      should not be designated as a redevelopment project area.
             543          Section 12. Section 17B-4-705 is amended to read:
             544           17B-4-705. Notice required for continued hearing.
             545          The board shall give notice of a hearing continued under Section 17B-4-802 by[: (1)]
             546      announcing at the hearing:
             547          (1) the date, time, and place the hearing will be resumed; or
             548          (2) that it is being continued to a later time and causing a notice of the continued hearing
             549      to be:
             550          (a) published once in a newspaper of general circulation within the agency boundaries at
             551      least seven days before the hearing is scheduled to resume; or
             552          (b) if there is no newspaper of general circulation, posted in at least three conspicuous
             553      places within the boundaries of the agency in which the project area or proposed project area is
             554      located.


             555          Section 13. Section 17B-4-802 is amended to read:
             556           17B-4-802. Continuing a hearing.
             557          [By announcing at the hearing that it is being continued to a later date] Pursuant to the
             558      provisions of Section 17B-4-705 , the board may continue from time to time a:
             559          (1) blight hearing;
             560          (2) public input hearing;
             561          (3) combined blight hearing and plan hearing under Subsection 17B-4-801 (1);
             562          (4) plan hearing;
             563          (5) budget hearing; or
             564          (6) combined plan hearing and budget hearing under Subsection 17B-4-801 (2).
             565          Section 14. Section 17B-4-1001 is amended to read:
             566           17B-4-1001. Agency receipt and use of tax increment -- Distribution of tax
             567      increment.
             568          (1) An agency may receive and use tax increment, as provided in this part.
             569          (2) (a) The applicable length of time or number of years for which an agency is to be paid
             570      tax increment under this part shall be measured:
             571          (i) for a pre-July 1, 1993 project area plan, from the first tax year regarding which the
             572      agency accepts tax increment from the project area[.]; or
             573          (ii) for a post-June 30, 1993 project area plan, from the first tax year the agency is to
             574      receive tax increment as shown in the project area budget.
             575          (b) Tax increment may not be paid to an agency for a tax year prior to the tax year
             576      following the effective date of the project area plan.
             577          (3) With the written consent of a taxing entity, an agency may be paid tax increment, from
             578      that taxing entity's tax revenues only, in a higher percentage or for a longer period of time, or both,
             579      than otherwise authorized under this chapter.
             580          (4) Each county that collects property tax on property within a project area shall pay and
             581      distribute to the agency the tax increment that the agency is entitled to collect under this chapter,
             582      in the manner and at the time provided in Section 59-2-1365 .
             583          Section 15. Section 17B-4-1002 is amended to read:
             584           17B-4-1002. Taxing entity committee.
             585          (1) Each agency that adopts or proposes to adopt a post-June 30, 1993 project area plan


             586      shall, and any other agency may, cause a taxing entity committee to be created.
             587          (2) (a) (i) Each taxing entity committee shall be composed of:
             588          (A) two school district representatives appointed as provided in Subsection (2)(a)(ii);
             589          (B) S (I) IN COUNTIES OF THE SECOND, THIRD, FOURTH, FIFTH, OR SIXTH CLASS, s two
             589a      representatives appointed by resolution of the legislative body of the county in
             590      which the agency is located; S OR
             590a      (II) IN COUNTIES OF THE FIRST CLASS, TWO REPRESENTATIVES APPOINTED BY THE COUNTY
             590b      EXECUTIVE OF THE COUNTY IN WHICH THE AGENCY IS LOCATED; s
             591          (C) if the agency was created by a city or town, two representatives appointed by resolution
             592      of the legislative body of that city or town;
             593          (D) one representative appointed by the State Board of Education; and
             594          (E) one representative selected by majority vote of the legislative bodies or governing
             595      boards of all other taxing entities that levy a tax on property within the agency's boundaries, to
             596      represent the interests of those taxing entities on the taxing entity committee.
             597          (ii) (A) If the agency boundaries include only one school district, that school district shall
             598      appoint the two school district representatives under Subsection (2)(a)(i)(A).
             599          (B) If the agency boundaries include more than one school district, those school districts
             600      shall jointly appoint the two school district representatives under Subsection (2)(a)(i)(A).
             601          (b) (i) Each taxing entity committee representative under Subsection (2) shall be appointed
             602      within 30 days after the agency provides notice of the creation of the taxing entity committee.
             603          (ii) If a representative is not appointed within the time required under Subsection (2)(b)(i),
             604      the agency board may appoint a person to serve on the taxing entity committee in the place of the
             605      missing representative until that representative is appointed.
             606          (c) (i) A taxing entity committee representative may be appointed for a set term or period
             607      of time, as determined by the appointing authority under Subsection (2)(a)(i).
             608          (ii) Each taxing entity committee representative shall serve until a successor is appointed
             609      and qualified.
             610          (d) (i) Upon the appointment of each representative under Subsection (2)(a)(i), whether
             611      an initial appointment or an appointment to replace an already serving representative, the
             612      appointing authority shall:
             613          (A) notify the agency in writing of the name and address of the newly appointed
             614      representative; and
             615          (B) provide the agency a copy of the resolution making the appointment or, if the
             616      appointment is not made by resolution, other evidence of the appointment.


             617          (ii) Each appointing authority of a taxing entity committee representative under Subsection
             618      (2)(a)(i) shall notify the agency in writing of any change of address of a representative appointed
             619      by that appointing authority.
             620          (3) A taxing entity committee represents all taxing entities regarding a project area and
             621      may:
             622          (a) cast votes that will be binding on all taxing entities;
             623          (b) negotiate with the agency concerning a draft project area plan;
             624          (c) approve or disapprove a project area budget as provided in Section 17B-4-505 ;
             625          (d) approve or disapprove amendments to a project area budget as provided in Section
             626      17B-4-507 ;
             627          (e) approve exceptions to the limits on the value and size of a project area imposed under
             628      this chapter;
             629          (f) approve exceptions to the percentage of tax increment and the period of time that tax
             630      increment is paid to the agency as provided in this part;
             631          (g) approve the use of tax increment for access and utilities outside of a project area that
             632      the agency and community legislative body determine to be of benefit to the project area, as
             633      provided in Subsection 17B-4-1007 (1)(a)(ii)(D);
             634          (h) waive the restrictions imposed by Subsection 17B-4-503 (2)(a); and
             635          (i) give other taxing entity committee approval or consent required or allowed under this
             636      chapter.
             637          (4) A quorum of a taxing entity committee consists of:
             638          (a) except as provided in Subsection (4)(b):
             639          (i) if the project area is located within a city or town, five members; or
             640          (ii) if the project area is not located within a city or town, four members; or
             641          (b) for an education housing development project area as to which the school district has
             642      elected under Subsection 17B-4-1004 (5) not to allow the agency to be paid tax increment from
             643      school district tax revenues:
             644          (i) if the project area is located within a city or town, three members; or
             645          (ii) if the project area is not located within a city or town, two members.
             646          (5) Taxing entity committee approval, consent, or other action requires the affirmative vote
             647      of a majority of a quorum present at a taxing entity committee meeting.


             648          (6) Each taxing entity committee shall be governed by Title 52, Chapter 4, Open and
             649      Public Meetings.
             650          (7) Each time a school district representative or a representative of the State Board of
             651      Education votes as a member of a taxing entity committee to allow an agency to be paid tax
             652      increment or to increase the amount or length of time that an agency may be paid tax increment,
             653      that representative shall, within 45 days after the vote, provide to the representative's respective
             654      school board an explanation in writing of the representative's vote and the reasons for the vote.
             655          (8) (a) The assessor of each county in which the agency is located shall provide a written
             656      report to the taxing entity committee stating, with respect to property within each project area:
             657          (i) the base taxable value, as adjusted by any adjustments under Section 17B-4-1006; and
             658          (ii) the assessed value.
             659          (b) With respect to the information required under Subsection (8)(a), the [agency] assessor
             660      shall provide:
             661          (i) actual amounts for each year from the adoption of the project area plan to the time of
             662      the report; and
             663          (ii) estimated amounts for each year beginning the year after the time of the report and
             664      ending the time that the agency expects no longer to be paid tax increment from property within
             665      the project area.
             666          (c) The assessor of the county in which the agency is located shall provide a report under
             667      this Subsection (8):
             668          (i) at least annually; and
             669          (ii) upon request of the taxing entity committee, before a taxing entity committee meeting
             670      at which the committee will consider whether to allow the agency to be paid tax increment or to
             671      increase the amount or length of time that the agency may be paid tax increment.
             672          Section 16. Section 17B-4-1004 is amended to read:
             673           17B-4-1004. Tax increment under a post-June 30, 1993 project area plan.
             674          (1) This section applies to tax increment under a post-June 30, 1993 project area plan only.
             675          (2) An agency board may provide in the project area budget for the agency to be paid:
             676          (a) if 20% of the project area budget is allocated for housing under Section 17B-4-504 :
             677          (i) 100% of annual tax increment for 15 years;
             678          (ii) 75% of annual tax increment for 24 years; or


             679          (iii) if approved by the taxing entity committee, any percentage of tax increment up to
             680      100%, or any specified dollar amount, for any period of time; or
             681          (b) if 20% of the project area budget is not allocated for housing under Section 17B-4-504 :
             682          (i) 100% of annual tax increment for 12 years;
             683          (ii) 75% of annual tax increment for 20 years; or
             684          (iii) if approved by the taxing entity committee, any percentage of tax increment up to
             685      100%, or any specified dollar amount, for any period of time.
             686          (3) (a) An agency may, without the approval of the taxing entity committee, elect to be
             687      paid 100% of annual tax increment for each year beyond the periods specified in Subsection (2)
             688      to a maximum of 25 years, including the years the agency is paid tax increment under Subsection
             689      (2), if:
             690          (i) for an agency in a city in which is located all or a portion of an interchange on I-15 or
             691      that would directly benefit from an interchange on I-15:
             692          (A) the tax increment paid to the agency during the additional years is used to pay some
             693      or all of the cost of the installation, construction, or reconstruction of:
             694          (I) an interchange on I-15, whether or not the interchange is located within a project area;
             695      or
             696          (II) frontage and other roads connecting to the interchange, as determined by the
             697      Department of Transportation created under Section 72-1-201 and the Transportation Commission
             698      created under Section 72-1-301 , whether or not the frontage or other road is located within a
             699      project area; and
             700          (B) the installation, construction, or reconstruction of the interchange or frontage and other
             701      roads has begun on or before June 30, 2002;
             702          (ii) for an agency in a city of the first or second class:
             703          (A) the tax increment paid to the agency during the additional years is used to pay some
             704      or all of the cost of the land for and installation and construction of a recreational facility, as
             705      defined in [Subsection 59-19-702 (3)] Section 59-12-702, or a cultural facility, including parking
             706      and infrastructure improvements related to the recreational or cultural facility, whether or not the
             707      facility is located within a project area; and
             708          (B) the installation or construction of the recreational or cultural facility has begun on or
             709      before June 30, 2002.


             710          (b) Notwithstanding any other provision of this section, an agency may use tax increment
             711      received under Subsection (2) for any of the uses indicated in this Subsection (3).
             712          [(b)] (c) Notwithstanding Subsection (3)(a), a school district may not, without its consent,
             713      receive less tax increment because of application of Subsection (3)(a) than it would have received
             714      without that subsection.
             715          (4) Unless the taxing entity committee consents, an agency may not be paid tax increment
             716      from the project area for more than 25 years [after adoption of the project area plan].
             717          (5) (a) A school district that levies a tax on property located within a project area under
             718      an education housing development project area plan may elect not to allow the agency to be paid
             719      tax increment from the property tax revenues generated by the school district.
             720          (b) An election under Subsection (5)(a) shall be made in writing to the agency before the
             721      taxing entity committee's approval of the project area budget.
             722          (c) If a school district makes an election under this Subsection (5):
             723          (i) the agency may not be paid tax increment from property tax revenues generated by the
             724      school district; and
             725          (ii) the school district representatives and the State Board of Education representative on
             726      the taxing entity committee may not vote on any matter concerning the education housing
             727      development project area or project area budget.
             728          Section 17. Section 17B-4-1007 is amended to read:
             729           17B-4-1007. Allowable uses of tax increment.
             730          (1) (a) An agency may use tax increment:
             731          (i) for any of the purposes for which the use of tax increment is authorized under this
             732      chapter;
             733          (ii) to pay for, including financing or refinancing, all or part of:
             734          (A) the redevelopment, economic development, or education housing development in the
             735      project area from which the tax increment funds were collected;
             736          (B) housing expenditures, projects, or programs as provided in Section 17B-4-1009 or
             737      17B-4-1010 ;
             738          (C) with the consent of the community legislative body and subject to Subsection [(3)] (4),
             739      the value of the land for and the cost of the installation and construction of any publicly owned
             740      building, facility, structure, landscaping, or other improvement within the project area from which


             741      the tax increment funds were collected; and
             742          (D) with the consent of the community legislative body and the taxing entity committee,
             743      the cost of the installation of publicly owned utilities and access outside the project area from
             744      which the tax increment funds were collected if the agency board and the community legislative
             745      body determine by resolution that the utilities and access are of benefit to the project area; or
             746          (iii) for administrative, overhead, legal, and other operating expenses of the agency.
             747          (b) The determination of the agency board and the community legislative body under
             748      Subsection (1)(a)(ii)(D) regarding benefit to the project area shall be final and conclusive.
             749          (2) (a) An agency may contract with the community that created the agency or another
             750      public entity to use tax increment to reimburse the cost of items authorized by this chapter to be
             751      paid by the agency that have been or will be paid by the community or other public entity.
             752          (b) If land has been or will be acquired or the cost of an improvement has been or will be
             753      paid by another public entity and the land or improvement has been or will be leased to the
             754      community, an agency may contract with and make reimbursement from tax increment funds to
             755      the community.
             756          (3) An agency created by a city of the first or second class may use tax increment from one
             757      project area in another project area to pay all or part of the value of the land for and the cost of
             758      installation and construction of a publicly or privately owned convention center or sports complex
             759      or any building, facility, structure, or other improvement related to the convention center or sports
             760      complex, including parking and infrastructure improvements, if:
             761          (a) construction on the convention center or sports complex or related building, facility,
             762      structure, or other improvement begins on or before June 30, 2002; and
             763          (b) the tax increment is pledged to pay all or part of the value of the land for and the cost
             764      of the installation and construction of the convention center or sports complex or related building,
             765      facility, structure, or other improvement.
             766          (4) Notwithstanding any other provision of this chapter, an agency may not use tax
             767      increment to construct municipal buildings, courts or other judicial buildings, or fire stations.
             768          Section 18. Section 17B-4-1010 is amended to read:
             769           17B-4-1010. Income targeted housing -- Agency may use tax increment for income
             770      targeted housing.
             771          (1) As used in this section:


             772          (a) "Annual income" has the meaning as defined under regulations of the U.S. Department
             773      of Housing and Urban Development, 24 CFR, Part 813, as amended or as superseded by
             774      replacement regulations.
             775          (b) "Fair share ratio" means the ratio derived by:
             776          (i) for a city or town, comparing the percentage of all housing units within the city or town
             777      that are publicly subsidized income targeted housing units to the percentage of all housing units
             778      within the whole county that are publicly subsidized income targeted housing units; or
             779          (ii) for the unincorporated part of a county, comparing the percentage of all housing units
             780      within the unincorporated county that are publicly subsidized income targeted housing units to the
             781      percentage of all housing units within the whole county that are publicly subsidized income
             782      targeted housing units.
             783          (c) "Family" has the meaning as defined under regulations of the U.S. Department of
             784      Housing and Urban Development, 24 CFR, Part 813, as amended or as superseded by replacement
             785      regulations.
             786          (d) "Housing funds" means the funds allocated in the project area budget under Section
             787      17B-4-504 for the purposes provided in Subsection (2).
             788          (e) "Income targeted housing" means housing to be owned or occupied by a family whose
             789      annual income is at or below 80% of the median annual income for the county in which the
             790      housing is located.
             791          (f) "Unincorporated" means not within a city or town.
             792          (2) (a) Each agency shall use all funds allocated for housing under this section to:
             793          (i) pay part or all of the cost of land or construction of income targeted housing within the
             794      community that created the agency, if practicable in a mixed income development or area;
             795          (ii) pay part or all of the cost of rehabilitation of income targeted housing within the
             796      community that created the agency;
             797          (iii) pay part or all of the cost of land or installation, construction, or rehabilitation of any
             798      building, facility, structure, or other housing improvement, including infrastructure improvements,
             799      related to housing located in a project area where blight has been found to exist;
             800          (iv) replace housing units lost as a result of the redevelopment, economic development,
             801      or education housing development;
             802          (v) make payments on or establish a reserve fund for bonds:


             803          (A) issued by the agency, the community, or the housing authority that provides income
             804      targeted housing within the community; and
             805          (B) all or part of the proceeds of which are used within the community for the purposes
             806      stated in Subsection (2)(a)(i), (ii), (iii), or (iv); or
             807          (vi) if the community's fair share ratio at the time of the first adoption of the project area
             808      budget is at least 1.1 to 1.0, make payments on bonds:
             809          (A) that were previously issued by the agency, the community, or the housing authority
             810      that provides income targeted housing within the community; and
             811          (B) all or part of the proceeds of which were used within the community for the purposes
             812      stated in Subsection (2)(a)(i), (ii), (iii), or (iv).
             813          (b) As an alternative to the requirements of Subsection (2)(a), an agency may pay all or
             814      any portion of housing funds to:
             815          (i) the community for use as provided under Subsection (2)(a);
             816          (ii) the housing authority that provides income targeted housing within the community for
             817      use in providing income targeted housing within the community; or
             818          (iii) the Olene Walker Housing Trust Fund, established under Title 9, Chapter 4, Part 7,
             819      Olene Walker Housing Trust Fund, for use in providing income targeted housing within the
             820      community.
             821          (3) The agency or community shall separately account for the housing funds, together with
             822      all interest earned by the housing funds and all payments or repayments for loans, advances, or
             823      grants from the housing funds.
             824          (4) In using housing funds under Subsection (2)(a), an agency may lend, grant, or
             825      contribute housing funds to a person, public body, housing authority, private entity or business,
             826      or nonprofit organization for use as provided in Subsection (2)(a).
             827          (5) An agency may:
             828          (a) issue bonds from time to time to finance a housing undertaking under this section,
             829      including the payment of principal and interest upon advances for surveys and plans or preliminary
             830      loans; and
             831          (b) issue refunding bonds for the payment or retirement of bonds under Subsection (5)(a)
             832      previously issued by the agency.
             833          (6) (a) If an agency fails to provide housing funds in accordance with the project area


             834      budget and, if applicable, the housing plan adopted under Subsection 17B-4-505 (2), the trust fund
             835      board may bring legal action to compel the agency to provide the housing funds.
             836          (b) In an action under Subsection (6)(a), the court:
             837          (i) shall award the trust fund board a reasonable attorney's fee, unless the court finds that
             838      the action was frivolous; and
             839          (ii) may not award the agency its attorney's fees, unless the court finds that the action was
             840      frivolous.




Legislative Review Note
    as of 11-14-01 5:35 PM


A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


Committee Note

The Political Subdivisions Interim Committee recommended this bill.


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