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7 LONG TITLE
8 General Description:
9 This bill modifies provisions relating to affordable housing and the provision of
10 services related to affordable housing.
11 Highlighted Provisions:
12 This bill:
13 ▸ modifies provisions related to the moderate income housing reporting requirements
14 for certain cities and counties;
15 ▸ allows a city or county to appeal the Housing and Community Development
16 Division's determination of noncompliance in relation to city and county moderate
17 income housing reports;
18 ▸ establishes an appeal board to hear and decide appeals in relation to city and county
19 moderate income housing reports;
20 ▸ requires the Department of Workforce Services to report annually on expenditures
21 authorized by the Utah Housing Preservation Fund;
22 ▸ establishes the Housing Support Grant Program within the Office of Homeless
23 Services for supporting residential projects that include affordable housing units;
24 ▸ allows for state low-income housing tax credits to be allocated, by pass-through, to
25 certain business entities;
26 ▸ increases the aggregate annual amount of state low-income housing tax credits that
27 may be allocated in certain years;
28 ▸ allows a taxpayer to claim a state low-income housing tax credit before final
29 certification from the Utah Housing Corporation in certain circumstances;
30 ▸ requires the Legislature to conduct reviews of the aggregate annual amount of state
31 low-income housing tax credits that the Utah Housing Corporation is authorized to
32 allocate and has allocated; and
33 ▸ makes technical and conforming changes.
34 Money Appropriated in this Bill:
35 This bill appropriates in fiscal year 2024:
36 ▸ to Department of Health and Human Services -- Integrated Health Care Services, as
37 an ongoing appropriation:
38 • from Medicaid Expansion Fund, $3,900,000.
39 Other Special Clauses:
40 This bill provides a special effective date.
41 This bill provides retrospective operation.
42 Utah Code Sections Affected:
43 AMENDS:
44 10-9a-401, as last amended by Laws of Utah 2022, Chapters 282, 406
45 10-9a-403, as last amended by Laws of Utah 2022, Chapters 282, 406 and last amended
46 by Coordination Clause, Laws of Utah 2022, Chapter 406
47 10-9a-408, as last amended by Laws of Utah 2022, Chapter 406
48 17-27a-401, as last amended by Laws of Utah 2022, Chapters 282, 406
49 17-27a-403, as last amended by Laws of Utah 2022, Chapters 282, 406
50 17-27a-408, as last amended by Laws of Utah 2022, Chapter 406
51 59-7-607, as last amended by Laws of Utah 2020, Chapter 241
52 59-9-108, as enacted by Laws of Utah 2020, Chapter 241
53 59-10-1010, as last amended by Laws of Utah 2020, Chapter 241
54 63J-4-802, as last amended by Laws of Utah 2022, Chapter 406
55 72-1-304, as last amended by Laws of Utah 2022, Chapter 406
56 72-2-124, as last amended by Laws of Utah 2022, Chapters 69, 259 and 406
57 ENACTS:
58 35A-8-2401, Utah Code Annotated 1953
59 35A-16-701, Utah Code Annotated 1953
60
61 Be it enacted by the Legislature of the state of Utah:
62 Section 1. Section 10-9a-401 is amended to read:
63 10-9a-401. General plan required -- Content.
64 (1) To accomplish the purposes of this chapter, a municipality shall prepare and adopt
65 a comprehensive, long-range general plan for:
66 (a) present and future needs of the municipality; and
67 (b) growth and development of all or any part of the land within the municipality.
68 (2) The general plan may provide for:
69 (a) health, general welfare, safety, energy conservation, transportation, prosperity, civic
70 activities, aesthetics, and recreational, educational, and cultural opportunities;
71 (b) the reduction of the waste of physical, financial, or human resources that result
72 from either excessive congestion or excessive scattering of population;
73 (c) the efficient and economical use, conservation, and production of the supply of:
74 (i) food and water; and
75 (ii) drainage, sanitary, and other facilities and resources;
76 (d) the use of energy conservation and solar and renewable energy resources;
77 (e) the protection of urban development;
78 (f) if the municipality is a town, the protection or promotion of moderate income
79 housing;
80 (g) the protection and promotion of air quality;
81 (h) historic preservation;
82 (i) identifying future uses of land that are likely to require an expansion or significant
83 modification of services or facilities provided by an affected entity; and
84 (j) an official map.
85 (3) (a) The general plan of a specified municipality, as defined in Section 10-9a-408,
86 shall include a moderate income housing element that meets the requirements of Subsection
87 10-9a-403(2)(a)(iii).
88 [
89
90
91 (b) (i) This Subsection (3)(b) applies to a municipality that is not a specified
92 municipality as of January 1, 2023.
93 (ii) If a municipality described in Subsection (3)(b)(i) changes from one class to
94 another or grows in population to qualify as a specified municipality as defined in Section
95 10-9a-408, the municipality shall amend the municipality's general plan to comply with
96 Subsection (3)(a) on or before August 1 of the first calendar year beginning on January 1 in
97 which the municipality qualifies as a specified municipality.
98 (4) Subject to Subsection 10-9a-403(2), the municipality may determine the
99 comprehensiveness, extent, and format of the general plan.
100 Section 2. Section 10-9a-403 is amended to read:
101 10-9a-403. General plan preparation.
102 (1) (a) The planning commission shall provide notice, as provided in Section
103 10-9a-203, of the planning commission's intent to make a recommendation to the municipal
104 legislative body for a general plan or a comprehensive general plan amendment when the
105 planning commission initiates the process of preparing the planning commission's
106 recommendation.
107 (b) The planning commission shall make and recommend to the legislative body a
108 proposed general plan for the area within the municipality.
109 (c) The plan may include areas outside the boundaries of the municipality if, in the
110 planning commission's judgment, those areas are related to the planning of the municipality's
111 territory.
112 (d) Except as otherwise provided by law or with respect to a municipality's power of
113 eminent domain, when the plan of a municipality involves territory outside the boundaries of
114 the municipality, the municipality may not take action affecting that territory without the
115 concurrence of the county or other municipalities affected.
116 (2) (a) At a minimum, the proposed general plan, with the accompanying maps, charts,
117 and descriptive and explanatory matter, shall include the planning commission's
118 recommendations for the following plan elements:
119 (i) a land use element that:
120 (A) designates the long-term goals and the proposed extent, general distribution, and
121 location of land for housing for residents of various income levels, business, industry,
122 agriculture, recreation, education, public buildings and grounds, open space, and other
123 categories of public and private uses of land as appropriate;
124 (B) includes a statement of the projections for and standards of population density and
125 building intensity recommended for the various land use categories covered by the plan;
126 (C) except for a city of the fifth class or a town, is coordinated to integrate the land use
127 element with the water use and preservation element; and
128 (D) except for a city of the fifth class or a town, accounts for the effect of land use
129 categories and land uses on water demand;
130 (ii) a transportation and traffic circulation element that:
131 (A) provides the general location and extent of existing and proposed freeways, arterial
132 and collector streets, public transit, active transportation facilities, and other modes of
133 transportation that the planning commission considers appropriate;
134 (B) for a municipality that has access to a major transit investment corridor, addresses
135 the municipality's plan for residential and commercial development around major transit
136 investment corridors to maintain and improve the connections between housing, employment,
137 education, recreation, and commerce;
138 (C) for a municipality that does not have access to a major transit investment corridor,
139 addresses the municipality's plan for residential and commercial development in areas that will
140 maintain and improve the connections between housing, transportation, employment,
141 education, recreation, and commerce; and
142 (D) correlates with the population projections, the employment projections, and the
143 proposed land use element of the general plan;
144 (iii) [
145 housing element that:
146 (A) provides a realistic opportunity to meet the need for additional moderate income
147 housing within the municipality during the next five years;
148 (B) [
149 the moderate income housing strategies described in Subsection (2)(b)(iii) [
150
151
152 (C) for a specified municipality, as defined in Section 10-9a-408, that does not have a
153 fixed guideway public transit station, shall include a recommendation to implement three or
154 more of the moderate income housing strategies described in Subsection (2)(b)(iii);
155 (D) for a specified municipality, as defined in Section 10-9a-408, that has a fixed
156 guideway public transit station, shall include a recommendation to implement five or more of
157 the moderate income housing strategies described in Subsection (2)(b)(iii), of which one shall
158 be the moderate income housing strategy described in Subsection (2)(b)(iii)(V), and one shall
159 be a moderate income housing strategy described in Subsection (2)(b)(iii)(G), (H), or (Q); and
160 [
161 include an implementation plan as provided in Subsection (2)(c); and
162 (iv) except for a city of the fifth class or a town, a water use and preservation element
163 that addresses:
164 (A) the effect of permitted development or patterns of development on water demand
165 and water infrastructure;
166 (B) methods of reducing water demand and per capita consumption for future
167 development;
168 (C) methods of reducing water demand and per capita consumption for existing
169 development; and
170 (D) opportunities for the municipality to modify the municipality's operations to
171 eliminate practices or conditions that waste water.
172 (b) In drafting the moderate income housing element, the planning commission:
173 (i) shall consider the Legislature's determination that municipalities shall facilitate a
174 reasonable opportunity for a variety of housing, including moderate income housing:
175 (A) to meet the needs of people of various income levels living, working, or desiring to
176 live or work in the community; and
177 (B) to allow people with various incomes to benefit from and fully participate in all
178 aspects of neighborhood and community life;
179 (ii) for a town, may include, and for a specified municipality as defined in Section
180 10-9a-408, shall include, an analysis of how the municipality will provide a realistic
181 opportunity for the development of moderate income housing within the next five years;
182 (iii) for a town, may include, and for [
183 defined in Section 10-9a-408, shall include, a recommendation to implement [
184
185 as specified in Subsection (2)(a)(iii):
186 (A) rezone for densities necessary to facilitate the production of moderate income
187 housing;
188 (B) demonstrate investment in the rehabilitation or expansion of infrastructure that
189 facilitates the construction of moderate income housing;
190 (C) demonstrate investment in the rehabilitation of existing uninhabitable housing
191 stock into moderate income housing;
192 (D) identify and utilize general fund subsidies or other sources of revenue to waive
193 construction related fees that are otherwise generally imposed by the municipality for the
194 construction or rehabilitation of moderate income housing;
195 (E) create or allow for, and reduce regulations related to, internal or detached accessory
196 dwelling units in residential zones;
197 (F) zone or rezone for higher density or moderate income residential development in
198 commercial or mixed-use zones near major transit investment corridors, commercial centers, or
199 employment centers;
200 (G) amend land use regulations to allow for higher density or new moderate income
201 residential development in commercial or mixed-use zones near major transit investment
202 corridors;
203 (H) amend land use regulations to eliminate or reduce parking requirements for
204 residential development where a resident is less likely to rely on the resident's own vehicle,
205 such as residential development near major transit investment corridors or senior living
206 facilities;
207 (I) amend land use regulations to allow for single room occupancy developments;
208 (J) implement zoning incentives for moderate income units in new developments;
209 (K) preserve existing and new moderate income housing and subsidized units by
210 utilizing a landlord incentive program, providing for deed restricted units through a grant
211 program, or, notwithstanding Section 10-9a-535, establishing a housing loss mitigation fund;
212 (L) reduce, waive, or eliminate impact fees related to moderate income housing;
213 (M) demonstrate creation of, or participation in, a community land trust program for
214 moderate income housing;
215 (N) implement a mortgage assistance program for employees of the municipality, an
216 employer that provides contracted services to the municipality, or any other public employer
217 that operates within the municipality;
218 (O) apply for or partner with an entity that applies for state or federal funds or tax
219 incentives to promote the construction of moderate income housing, an entity that applies for
220 programs offered by the Utah Housing Corporation within that agency's funding capacity, an
221 entity that applies for affordable housing programs administered by the Department of
222 Workforce Services, an entity that applies for affordable housing programs administered by an
223 association of governments established by an interlocal agreement under Title 11, Chapter 13,
224 Interlocal Cooperation Act, an entity that applies for services provided by a public housing
225 authority to preserve and create moderate income housing, or any other entity that applies for
226 programs or services that promote the construction or preservation of moderate income
227 housing;
228 (P) demonstrate utilization of a moderate income housing set aside from a community
229 reinvestment agency, redevelopment agency, or community development and renewal agency
230 to create or subsidize moderate income housing;
231 (Q) create a housing and transit reinvestment zone pursuant to Title 63N, Chapter 3,
232 Part 6, Housing and Transit Reinvestment Zone Act;
233 (R) eliminate impact fees for any accessory dwelling unit that is not an internal
234 accessory dwelling unit as defined in Section 10-9a-530;
235 (S) create a program to transfer development rights for moderate income housing;
236 (T) ratify a joint acquisition agreement with another local political subdivision for the
237 purpose of combining resources to acquire property for moderate income housing;
238 (U) develop a moderate income housing project for residents who are disabled or 55
239 years old or older;
240 (V) develop and adopt a station area plan in accordance with Section 10-9a-403.1;
241 (W) create or allow for, and reduce regulations related to, multifamily residential
242 dwellings compatible in scale and form with detached single-family residential dwellings and
243 located in walkable communities within residential or mixed-use zones; and
244 (X) demonstrate implementation of any other program or strategy to address the
245 housing needs of residents of the municipality who earn less than 80% of the area median
246 income, including the dedication of a local funding source to moderate income housing or the
247 adoption of a land use ordinance that requires 10% or more of new residential development in a
248 residential zone be dedicated to moderate income housing; and
249 [
250
251
252 [
253 [
254 (iv) shall identify each moderate income housing strategy recommended to the
255 legislative body for implementation by restating the exact language used to describe the
256 strategy in Subsection (2)(b)(iii).
257 (c) (i) In drafting the implementation plan portion of the moderate income housing
258 element as described in Subsection (2)(a)(iii)(C), the planning commission shall [
259 recommend to the legislative body the establishment of a five-year timeline for implementing
260 each of the moderate income housing strategies selected by the municipality for
261 implementation.
262 (ii) The timeline described in Subsection (2)(c)(i) shall:
263 (A) identify specific measures and benchmarks for implementing each moderate
264 income housing strategy selected by the municipality, whether one-time or ongoing; and
265 (B) provide flexibility for the municipality to make adjustments as needed.
266 (d) In drafting the land use element, the planning commission shall:
267 (i) identify and consider each agriculture protection area within the municipality;
268 (ii) avoid proposing a use of land within an agriculture protection area that is
269 inconsistent with or detrimental to the use of the land for agriculture; and
270 (iii) consider and coordinate with any station area plans adopted by the municipality if
271 required under Section 10-9a-403.1.
272 (e) In drafting the transportation and traffic circulation element, the planning
273 commission shall:
274 (i) (A) consider and coordinate with the regional transportation plan developed by the
275 municipality's region's metropolitan planning organization, if the municipality is within the
276 boundaries of a metropolitan planning organization; or
277 (B) consider and coordinate with the long-range transportation plan developed by the
278 Department of Transportation, if the municipality is not within the boundaries of a
279 metropolitan planning organization; and
280 (ii) consider and coordinate with any station area plans adopted by the municipality if
281 required under Section 10-9a-403.1.
282 (f) In drafting the water use and preservation element, the planning commission:
283 (i) shall consider:
284 (A) applicable regional water conservation goals recommended by the Division of
285 Water Resources; and
286 (B) if Section 73-10-32 requires the municipality to adopt a water conservation plan
287 pursuant to Section 73-10-32, the municipality's water conservation plan;
288 (ii) shall include a recommendation for:
289 (A) water conservation policies to be determined by the municipality; and
290 (B) landscaping options within a public street for current and future development that
291 do not require the use of lawn or turf in a parkstrip;
292 (iii) shall review the municipality's land use ordinances and include a recommendation
293 for changes to an ordinance that promotes the inefficient use of water;
294 (iv) shall consider principles of sustainable landscaping, including the:
295 (A) reduction or limitation of the use of lawn or turf;
296 (B) promotion of site-specific landscape design that decreases stormwater runoff or
297 runoff of water used for irrigation;
298 (C) preservation and use of healthy trees that have a reasonable water requirement or
299 are resistant to dry soil conditions;
300 (D) elimination or regulation of ponds, pools, and other features that promote
301 unnecessary water evaporation;
302 (E) reduction of yard waste; and
303 (F) use of an irrigation system, including drip irrigation, best adapted to provide the
304 optimal amount of water to the plants being irrigated;
305 (v) shall consult with the public water system or systems serving the municipality with
306 drinking water regarding how implementation of the land use element and water use and
307 preservation element may affect:
308 (A) water supply planning, including drinking water source and storage capacity
309 consistent with Section 19-4-114; and
310 (B) water distribution planning, including master plans, infrastructure asset
311 management programs and plans, infrastructure replacement plans, and impact fee facilities
312 plans;
313 (vi) may include recommendations for additional water demand reduction strategies,
314 including:
315 (A) creating a water budget associated with a particular type of development;
316 (B) adopting new or modified lot size, configuration, and landscaping standards that
317 will reduce water demand for new single family development;
318 (C) providing one or more water reduction incentives for existing development such as
319 modification of existing landscapes and irrigation systems and installation of water fixtures or
320 systems that minimize water demand;
321 (D) discouraging incentives for economic development activities that do not adequately
322 account for water use or do not include strategies for reducing water demand; and
323 (E) adopting water concurrency standards requiring that adequate water supplies and
324 facilities are or will be in place for new development; and
325 (vii) for a town, may include, and for another municipality, shall include, a
326 recommendation for low water use landscaping standards for a new:
327 (A) commercial, industrial, or institutional development;
328 (B) common interest community, as defined in Section 57-25-102; or
329 (C) multifamily housing project.
330 (3) The proposed general plan may include:
331 (a) an environmental element that addresses:
332 (i) the protection, conservation, development, and use of natural resources, including
333 the quality of:
334 (A) air;
335 (B) forests;
336 (C) soils;
337 (D) rivers;
338 (E) groundwater and other waters;
339 (F) harbors;
340 (G) fisheries;
341 (H) wildlife;
342 (I) minerals; and
343 (J) other natural resources; and
344 (ii) (A) the reclamation of land, flood control, prevention and control of the pollution
345 of streams and other waters;
346 (B) the regulation of the use of land on hillsides, stream channels and other
347 environmentally sensitive areas;
348 (C) the prevention, control, and correction of the erosion of soils;
349 (D) the preservation and enhancement of watersheds and wetlands; and
350 (E) the mapping of known geologic hazards;
351 (b) a public services and facilities element showing general plans for sewage, water,
352 waste disposal, drainage, public utilities, rights-of-way, easements, and facilities for them,
353 police and fire protection, and other public services;
354 (c) a rehabilitation, redevelopment, and conservation element consisting of plans and
355 programs for:
356 (i) historic preservation;
357 (ii) the diminution or elimination of a development impediment as defined in Section
358 17C-1-102; and
359 (iii) redevelopment of land, including housing sites, business and industrial sites, and
360 public building sites;
361 (d) an economic element composed of appropriate studies and forecasts, as well as an
362 economic development plan, which may include review of existing and projected municipal
363 revenue and expenditures, revenue sources, identification of basic and secondary industry,
364 primary and secondary market areas, employment, and retail sales activity;
365 (e) recommendations for implementing all or any portion of the general plan, including
366 the adoption of land and water use ordinances, capital improvement plans, community
367 development and promotion, and any other appropriate action;
368 (f) provisions addressing any of the matters listed in Subsection 10-9a-401(2) or (3);
369 and
370 (g) any other element the municipality considers appropriate.
371 Section 3. Section 10-9a-408 is amended to read:
372 10-9a-408. Moderate income housing report -- Contents -- Prioritization for
373 funds or projects -- Ineligibility for funds after noncompliance -- Civil actions.
374 (1) As used in this section:
375 (a) "Division" means the Housing and Community Development Division within the
376 Department of Workforce Services.
377 (b) "Implementation plan" means the implementation plan adopted as part of the
378 moderate income housing element of a specified municipality's general plan as provided in
379 Subsection 10-9a-403(2)(c).
380 (c) [
381 income housing report" means the one-time report described in Subsection [
382 (d) "Moderate income housing strategy" means a strategy described in Subsection
383 10-9a-403(2)(b)(iii).
384 (e) "Report" means an initial report or a subsequent progress report.
385 [
386 (i) a city of the first, second, third, or fourth class;
387 (ii) a city of the fifth class with a population of 5,000 or more, if the city is located
388 within a county of the first, second, or third class; or
389 (iii) a metro township with a population of 5,000 or more.
390 (g) "Subsequent progress report" means the annual report described in Subsection (3).
391 (2) (a) [
392 legislative body of a specified municipality shall [
393
394 [
395 (b) (i) This Subsection (2)(b) applies to a municipality that is not a specified
396 municipality as of January 1, 2023.
397 (ii) If a municipality described in Subsection (2)(b)(i) changes from one class to
398 another or grows in population to qualify as a specified municipality, the municipality shall
399 submit an initial plan to the division on or before August 1 of the first calendar year beginning
400 on January 1 in which the municipality qualifies as a specified municipality.
401 (c) The initial report shall:
402 (i) [
403 specified municipality for continued, ongoing, or one-time implementation, restating the exact
404 language used to describe the moderate income housing strategy in Subsection
405 10-9a-403(2)(b)(iii); and
406 (ii) include an implementation plan.
407 [
408
409 specified municipality shall, as an administrative act, annually submit to the division a
410 subsequent progress report on or before August 1 of each year after the year in which the
411 specified municipality is required to submit the initial report.
412 (b) The subsequent progress report shall include:
413 [
414 [
415 ongoing, taken by the specified municipality during the previous [
416 to implement the moderate income housing strategies [
417 identified in the initial report for implementation;
418 [
419 specified municipality during the previous [
420 moderate income housing strategies, including an explanation of how the land use regulation or
421 land use decision supports the specified municipality's efforts to implement the moderate
422 income housing strategies;
423 [
424 previous [
425 strategies;
426 [
427 accessory dwelling units located within the specified municipality for which the specified
428 municipality:
429 (A) issued a building permit to construct; or
430 (B) issued a business license or comparable license or permit to rent;
431 [
432 income housing strategies, including the number of entitled moderate income housing units or
433 other relevant data; and
434 [
435 municipality in implementing the moderate income housing strategies.
436 (c) For purposes of describing actions taken by a specified municipality under
437 Subsection (3)(b)(i), the specified municipality may include an ongoing action taken by the
438 specified municipality prior to the 12-month reporting period applicable to the subsequent
439 progress report if the specified municipality:
440 (i) has already adopted an ordinance, approved a land use application, made an
441 investment, or approved an agreement or financing that substantially promotes the
442 implementation of a moderate income housing strategy identified in the initial report; and
443 (ii) demonstrates in the subsequent progress report that the action taken under
444 Subsection (3)(c)(i) is relevant to making meaningful progress towards the specified
445 municipality's implementation plan.
446 (d) [
447 form:
448 (i) approved by the division; and
449 (ii) made available by the division on or before [
450 report is required.
451 [
452 municipality's [
453 (a) post the report on the division's website;
454 (b) send a copy of the report to the Department of Transportation, the Governor's
455 Office of Planning and Budget, the association of governments in which the specified
456 municipality is located, and, if the specified municipality is located within the boundaries of a
457 metropolitan planning organization, the appropriate metropolitan planning organization; and
458 (c) subject to Subsection [
459 [
460 [
461 An initial report does not comply with this section unless the report:
462 (i) includes the information required under Subsection [
463 (ii) demonstrates to the division that the specified municipality made plans to
464 implement:
465 (A) three or more moderate income housing strategies if the specified municipality
466 does not have a fixed guideway public transit station; or
467 (B) subject to Subsection 10-9a-403(2)(b)(iv), five or more moderate income housing
468 strategies if the specified municipality has a fixed guideway public transit station; and
469 (iii) is in a form approved by the division.
470 (b) [
471 subsequent progress report does not comply with this section unless the report:
472 [
473 [
474 implement:
475 (A) three or more moderate income housing strategies if the specified municipality
476 does not have a fixed guideway public transit station; or
477 (B) [
478 more moderate income housing strategies if the specified municipality has a fixed guideway
479 public transit station;
480 [
481 [
482 (A) assess the specified municipality's progress in implementing the moderate income
483 housing strategies;
484 (B) monitor compliance with the specified municipality's implementation plan;
485 (C) identify a clear correlation between the specified municipality's land use
486 regulations and land use decisions and the specified municipality's efforts to implement the
487 moderate income housing strategies; [
488 (D) identify how the market has responded to the specified municipality's selected
489 moderate income housing strategies[
490 (E) identify any barriers encountered by the specified municipality in implementing the
491 selected moderate income housing strategies.
492 [
493 Subsection [
494 (i) complies with [
495 (ii) demonstrates to the division that the specified municipality made plans to
496 implement:
497 (A) five or more moderate income housing strategies if the specified municipality does
498 not have a fixed guideway public transit station; or
499 (B) six or more moderate income housing strategies if the specified municipality has a
500 fixed guideway public transit station.
501 (b) The [
502 Subsection 72-1-304(3)(c), give priority consideration to transportation projects located within
503 the boundaries of a specified municipality described in Subsection [
504
505 Department of Transportation receives notice from the division under Subsection (6)(e).
506 [
507
508
509 [
510
511
512 (c) Upon determining that a specified municipality qualifies for priority consideration
513 under this Subsection [
514 legislative body of the specified municipality[
515
516 (d) The notice described in Subsection [
517 (i) name the specified municipality that qualifies for priority consideration;
518 (ii) describe the funds or projects for which the specified municipality qualifies to
519 receive priority consideration; and
520 [
521
522 [
523 qualifies for priority consideration.
524 (e) The division shall notify the legislative body of a specified municipality and the
525 Department of Transportation in writing if the division determines that the specified
526 municipality no longer qualifies for priority consideration under this Subsection (6).
527 [
528
529 the division shall send a notice of noncompliance to the legislative body of the specified
530 municipality.
531 (b) A specified municipality that receives a notice of noncompliance may:
532 (i) cure each deficiency in the report within 90 days after the day on which the notice of
533 noncompliance is sent; or
534 (ii) request an appeal of the division's determination of noncompliance within 10 days
535 after the day on which the notice of noncompliance is sent.
536 [
537 (i) describe each deficiency in the report and the actions needed to cure each
538 deficiency;
539 (ii) state that the specified municipality has an opportunity to [
540 (A) submit to the division a corrected report that cures each deficiency in the report
541 within 90 days after the day on which the notice of compliance is sent; [
542 (B) submit to the division a request for an appeal of the division's determination of
543 noncompliance within 10 days after the day on which the notice of noncompliance is sent; and
544 (iii) state that failure to [
545
546 ineligibility for funds under Subsection [
547 (d) For purposes of curing the deficiencies in a report under this Subsection (7), if the
548 action needed to cure the deficiency as described by the division requires the specified
549 municipality to make a legislative change, the specified municipality may cure the deficiency
550 by making that legislative change within the 90-day cure period.
551 (e) (i) If a specified municipality submits to the division a corrected report in
552 accordance with Subsection (7)(b)(i) and the division determines that the corrected report does
553 not comply with this section, the division shall send a second notice of noncompliance to the
554 legislative body of the specified municipality within 30 days after the day on which the
555 corrected report is submitted.
556 (ii) A specified municipality that receives a second notice of noncompliance may
557 submit to the division a request for an appeal of the division's determination of noncompliance
558 within 10 days after the day on which the second notice of noncompliance is sent.
559 (iii) The notice described in Subsection (7)(e)(i) shall:
560 (A) state that the specified municipality has an opportunity to submit to the division a
561 request for an appeal of the division's determination of noncompliance within 10 days after the
562 day on which the second notice of noncompliance is sent; and
563 (B) state that failure to take action under Subsection (7)(e)(iii)(A) will result in the
564 specified municipality's ineligibility for funds under Subsection (9).
565 (8) (a) A specified municipality that receives a notice of noncompliance under
566 Subsection (7)(a) or (7)(e)(i) may request an appeal of the division's determination of
567 noncompliance within 10 days after the day on which the notice of noncompliance is sent.
568 (b) Within 90 days after the day on which the division receives a request for an appeal,
569 an appeal board consisting of the following three members shall review and issue a written
570 decision on the appeal:
571 (i) one individual appointed by the Utah League of Cities and Towns;
572 (ii) one individual appointed by the Utah Homebuilders Association; and
573 (iii) one individual appointed by the presiding member of the association of
574 governments, established pursuant to an interlocal agreement under Title 11, Chapter 13,
575 Interlocal Cooperation Act, of which the specified municipality is a member.
576 (c) The written decision of the appeal board shall either uphold or reverse the division's
577 determination of noncompliance.
578 (d) The appeal board's written decision on the appeal is final.
579 [
580
581 (i) the specified municipality fails to submit a [
582 division; [
583 (ii) [
584
585 does not comply with this section and the specified municipality fails to:
586 (A) cure each deficiency in the report within 90 days after the day on which the notice
587 of noncompliance is sent; or
588 (B) request an appeal of the division's determination of noncompliance within [
589 days after the day on which the [
590 noncompliance [
591 (iii) after submitting to the division a corrected report to cure the deficiencies in a
592 previously-submitted report, the division determines that the corrected report does not comply
593 with this section and the specified municipality fails to request an appeal of the division's
594 determination of noncompliance within 10 days after the day on which the second notice of
595 noncompliance is sent; or
596 (iv) after submitting a request for an appeal under Subsection (8), the appeal board
597 issues a written decision upholding the division's determination of noncompliance.
598 (b) The following apply to a specified municipality described in Subsection [
599
600 (9)(a) until the division provides notice under Subsection (9)(e):
601 (i) the executive director of the Department of Transportation may not program funds
602 from the Transportation Investment Fund of 2005, including the Transit Transportation
603 Investment Fund, to projects located within the boundaries of the specified municipality in
604 accordance with Subsection 72-2-124(5); and
605 (ii) the Governor's Office of Planning and Budget may not award financial grants to the
606 specified municipality under the COVID-19 Local Assistance Matching Grant Program in
607 accordance with Subsection 63J-4-802(7).
608 (c) Upon determining that a specified municipality is ineligible for funds under this
609 Subsection [
610 the specified municipality, the Department of Transportation, and the Governor's Office of
611 Planning and Budget.
612 (d) The notice described in Subsection [
613 (i) name the specified municipality that is ineligible for funds;
614 (ii) describe the funds for which the specified municipality is ineligible to receive; and
615 [
616
617 [
618 is ineligible for funds.
619 (e) The division shall notify the legislative body of a specified municipality and the
620 Department of Transportation in writing if the division determines that the provisions of this
621 Subsection (9) no longer apply to the specified municipality.
622 [
623 or of Subsection 10-9a-404(4)(c), a plaintiff may not recover damages but may be awarded
624 only injunctive or other equitable relief.
625 Section 4. Section 17-27a-401 is amended to read:
626 17-27a-401. General plan required -- Content -- Resource management plan --
627 Provisions related to radioactive waste facility.
628 (1) To accomplish the purposes of this chapter, a county shall prepare and adopt a
629 comprehensive, long-range general plan:
630 (a) for present and future needs of the county;
631 (b) (i) for growth and development of all or any part of the land within the
632 unincorporated portions of the county; or
633 (ii) if a county has designated a mountainous planning district, for growth and
634 development of all or any part of the land within the mountainous planning district; and
635 (c) as a basis for communicating and coordinating with the federal government on land
636 and resource management issues.
637 (2) To promote health, safety, and welfare, the general plan may provide for:
638 (a) health, general welfare, safety, energy conservation, transportation, prosperity, civic
639 activities, aesthetics, and recreational, educational, and cultural opportunities;
640 (b) the reduction of the waste of physical, financial, or human resources that result
641 from either excessive congestion or excessive scattering of population;
642 (c) the efficient and economical use, conservation, and production of the supply of:
643 (i) food and water; and
644 (ii) drainage, sanitary, and other facilities and resources;
645 (d) the use of energy conservation and solar and renewable energy resources;
646 (e) the protection of urban development;
647 (f) the protection and promotion of air quality;
648 (g) historic preservation;
649 (h) identifying future uses of land that are likely to require an expansion or significant
650 modification of services or facilities provided by an affected entity; and
651 (i) an official map.
652 (3) (a) (i) The general plan of a specified county, as defined in Section 17-27a-408,
653 shall include a moderate income housing element that meets the requirements of Subsection
654 17-27a-403(2)(a)(iii).
655 [
656
657
658 (ii) (A) This Subsection (3)(a)(ii) applies to a county that does not qualify as a
659 specified county as of January 1, 2023.
660 (B) If a county described in Subsection (3)(a)(ii)(A) changes from one class to another
661 or grows in population to qualify as a specified county as defined in Section 17-27a-408, the
662 county shall amend the county's general plan to comply with Subsection (3)(a)(i) on or before
663 August 1 of the first calendar year beginning on January 1 in which the county qualifies as a
664 specified county.
665 (iii) A county described in Subsection (3)(a)(ii)(B) shall send a copy of the county's
666 amended general plan to the association of governments, established pursuant to an interlocal
667 agreement under Title 11, Chapter 13, Interlocal Cooperation Act, of which the county is a
668 member.
669 (b) The general plan shall contain a resource management plan for the public lands, as
670 defined in Section 63L-6-102, within the county.
671 (c) The resource management plan described in Subsection (3)(b) shall address:
672 (i) mining;
673 (ii) land use;
674 (iii) livestock and grazing;
675 (iv) irrigation;
676 (v) agriculture;
677 (vi) fire management;
678 (vii) noxious weeds;
679 (viii) forest management;
680 (ix) water rights;
681 (x) ditches and canals;
682 (xi) water quality and hydrology;
683 (xii) flood plains and river terraces;
684 (xiii) wetlands;
685 (xiv) riparian areas;
686 (xv) predator control;
687 (xvi) wildlife;
688 (xvii) fisheries;
689 (xviii) recreation and tourism;
690 (xix) energy resources;
691 (xx) mineral resources;
692 (xxi) cultural, historical, geological, and paleontological resources;
693 (xxii) wilderness;
694 (xxiii) wild and scenic rivers;
695 (xxiv) threatened, endangered, and sensitive species;
696 (xxv) land access;
697 (xxvi) law enforcement;
698 (xxvii) economic considerations; and
699 (xxviii) air.
700 (d) For each item listed under Subsection (3)(c), a county's resource management plan
701 shall:
702 (i) establish findings pertaining to the item;
703 (ii) establish defined objectives; and
704 (iii) outline general policies and guidelines on how the objectives described in
705 Subsection (3)(d)(ii) are to be accomplished.
706 (4) (a) (i) The general plan shall include specific provisions related to an area within, or
707 partially within, the exterior boundaries of the county, or contiguous to the boundaries of a
708 county, which are proposed for the siting of a storage facility or transfer facility for the
709 placement of high-level nuclear waste or greater than class C radioactive nuclear waste, as
710 these wastes are defined in Section 19-3-303.
711 (ii) The provisions described in Subsection (4)(a)(i) shall address the effects of the
712 proposed site upon the health and general welfare of citizens of the state, and shall provide:
713 (A) the information identified in Section 19-3-305;
714 (B) information supported by credible studies that demonstrates that Subsection
715 19-3-307(2) has been satisfied; and
716 (C) specific measures to mitigate the effects of high-level nuclear waste and greater
717 than class C radioactive waste and guarantee the health and safety of the citizens of the state.
718 (b) A county may, in lieu of complying with Subsection (4)(a), adopt an ordinance
719 indicating that all proposals for the siting of a storage facility or transfer facility for the
720 placement of high-level nuclear waste or greater than class C radioactive waste wholly or
721 partially within the county are rejected.
722 (c) A county may adopt the ordinance listed in Subsection (4)(b) at any time.
723 (d) The county shall send a certified copy of the ordinance described in Subsection
724 (4)(b) to the executive director of the Department of Environmental Quality by certified mail
725 within 30 days of enactment.
726 (e) If a county repeals an ordinance adopted under Subsection (4)(b) the county shall:
727 (i) comply with Subsection (4)(a) as soon as reasonably possible; and
728 (ii) send a certified copy of the repeal to the executive director of the Department of
729 Environmental Quality by certified mail within 30 days after the repeal.
730 (5) The general plan may define the county's local customs, local culture, and the
731 components necessary for the county's economic stability.
732 (6) Subject to Subsection 17-27a-403(2), the county may determine the
733 comprehensiveness, extent, and format of the general plan.
734 (7) If a county has designated a mountainous planning district, the general plan for the
735 mountainous planning district is the controlling plan.
736 (8) Nothing in this part may be construed to limit the authority of the state to manage
737 and protect wildlife under Title 23, Wildlife Resources Code of Utah.
738 (9) On or before December 31, 2025, a county that has a general plan that does not
739 include a water use and preservation element that complies with Section 17-27a-403 shall
740 amend the county's general plan to comply with Section 17-27a-403.
741 Section 5. Section 17-27a-403 is amended to read:
742 17-27a-403. Plan preparation.
743 (1) (a) The planning commission shall provide notice, as provided in Section
744 17-27a-203, of the planning commission's intent to make a recommendation to the county
745 legislative body for a general plan or a comprehensive general plan amendment when the
746 planning commission initiates the process of preparing the planning commission's
747 recommendation.
748 (b) The planning commission shall make and recommend to the legislative body a
749 proposed general plan for:
750 (i) the unincorporated area within the county; or
751 (ii) if the planning commission is a planning commission for a mountainous planning
752 district, the mountainous planning district.
753 (c) (i) The plan may include planning for incorporated areas if, in the planning
754 commission's judgment, they are related to the planning of the unincorporated territory or of
755 the county as a whole.
756 (ii) Elements of the county plan that address incorporated areas are not an official plan
757 or part of a municipal plan for any municipality, unless the county plan is recommended by the
758 municipal planning commission and adopted by the governing body of the municipality.
759 (2) (a) At a minimum, the proposed general plan, with the accompanying maps, charts,
760 and descriptive and explanatory matter, shall include the planning commission's
761 recommendations for the following plan elements:
762 (i) a land use element that:
763 (A) designates the long-term goals and the proposed extent, general distribution, and
764 location of land for housing for residents of various income levels, business, industry,
765 agriculture, recreation, education, public buildings and grounds, open space, and other
766 categories of public and private uses of land as appropriate;
767 (B) includes a statement of the projections for and standards of population density and
768 building intensity recommended for the various land use categories covered by the plan;
769 (C) is coordinated to integrate the land use element with the water use and preservation
770 element; and
771 (D) accounts for the effect of land use categories and land uses on water demand;
772 (ii) a transportation and traffic circulation element that:
773 (A) provides the general location and extent of existing and proposed freeways, arterial
774 and collector streets, public transit, active transportation facilities, and other modes of
775 transportation that the planning commission considers appropriate;
776 (B) addresses the county's plan for residential and commercial development around
777 major transit investment corridors to maintain and improve the connections between housing,
778 employment, education, recreation, and commerce; and
779 (C) correlates with the population projections, the employment projections, and the
780 proposed land use element of the general plan;
781 (iii) for a specified county as defined in Section 17-27a-408, a moderate income
782 housing element that:
783 (A) provides a realistic opportunity to meet the need for additional moderate income
784 housing within the next five years;
785 (B) selects three or more moderate income housing strategies described in Subsection
786 (2)(b)(ii) for implementation;
787 (C) includes an implementation plan as provided in Subsection (2)(e);
788 (iv) a resource management plan detailing the findings, objectives, and policies
789 required by Subsection 17-27a-401(3); and
790 (v) a water use and preservation element that addresses:
791 (A) the effect of permitted development or patterns of development on water demand
792 and water infrastructure;
793 (B) methods of reducing water demand and per capita consumption for future
794 development;
795 (C) methods of reducing water demand and per capita consumption for existing
796 development; and
797 (D) opportunities for the county to modify the county's operations to eliminate
798 practices or conditions that waste water.
799 (b) In drafting the moderate income housing element, the planning commission:
800 (i) shall consider the Legislature's determination that counties should facilitate a
801 reasonable opportunity for a variety of housing, including moderate income housing:
802 (A) to meet the needs of people of various income levels living, working, or desiring to
803 live or work in the community; and
804 (B) to allow people with various incomes to benefit from and fully participate in all
805 aspects of neighborhood and community life; and
806 (ii) shall include an analysis of how the county will provide a realistic opportunity for
807 the development of moderate income housing within the planning horizon, including a
808 recommendation to implement three or more of the following moderate income housing
809 strategies:
810 (A) rezone for densities necessary to facilitate the production of moderate income
811 housing;
812 (B) demonstrate investment in the rehabilitation or expansion of infrastructure that
813 facilitates the construction of moderate income housing;
814 (C) demonstrate investment in the rehabilitation of existing uninhabitable housing
815 stock into moderate income housing;
816 (D) identify and utilize county general fund subsidies or other sources of revenue to
817 waive construction related fees that are otherwise generally imposed by the county for the
818 construction or rehabilitation of moderate income housing;
819 (E) create or allow for, and reduce regulations related to, internal or detached accessory
820 dwelling units in residential zones;
821 (F) zone or rezone for higher density or moderate income residential development in
822 commercial or mixed-use zones, commercial centers, or employment centers;
823 (G) amend land use regulations to allow for higher density or new moderate income
824 residential development in commercial or mixed-use zones near major transit investment
825 corridors;
826 (H) amend land use regulations to eliminate or reduce parking requirements for
827 residential development where a resident is less likely to rely on the resident's own vehicle,
828 such as residential development near major transit investment corridors or senior living
829 facilities;
830 (I) amend land use regulations to allow for single room occupancy developments;
831 (J) implement zoning incentives for moderate income units in new developments;
832 (K) preserve existing and new moderate income housing and subsidized units by
833 utilizing a landlord incentive program, providing for deed restricted units through a grant
834 program, or establishing a housing loss mitigation fund;
835 (L) reduce, waive, or eliminate impact fees related to moderate income housing;
836 (M) demonstrate creation of, or participation in, a community land trust program for
837 moderate income housing;
838 (N) implement a mortgage assistance program for employees of the county, an
839 employer that provides contracted services for the county, or any other public employer that
840 operates within the county;
841 (O) apply for or partner with an entity that applies for state or federal funds or tax
842 incentives to promote the construction of moderate income housing, an entity that applies for
843 programs offered by the Utah Housing Corporation within that agency's funding capacity, an
844 entity that applies for affordable housing programs administered by the Department of
845 Workforce Services, an entity that applies for services provided by a public housing authority
846 to preserve and create moderate income housing, or any other entity that applies for programs
847 or services that promote the construction or preservation of moderate income housing;
848 (P) demonstrate utilization of a moderate income housing set aside from a community
849 reinvestment agency, redevelopment agency, or community development and renewal agency
850 to create or subsidize moderate income housing;
851 (Q) create a housing and transit reinvestment zone pursuant to Title 63N, Chapter 3,
852 Part 6, Housing and Transit Reinvestment Zone Act;
853 (R) eliminate impact fees for any accessory dwelling unit that is not an internal
854 accessory dwelling unit as defined in Section 10-9a-530;
855 (S) create a program to transfer development rights for moderate income housing;
856 (T) ratify a joint acquisition agreement with another local political subdivision for the
857 purpose of combining resources to acquire property for moderate income housing;
858 (U) develop a moderate income housing project for residents who are disabled or 55
859 years old or older;
860 (V) create or allow for, and reduce regulations related to, multifamily residential
861 dwellings compatible in scale and form with detached single-family residential dwellings and
862 located in walkable communities within residential or mixed-use zones; and
863 (W) demonstrate implementation of any other program or strategy to address the
864 housing needs of residents of the county who earn less than 80% of the area median income,
865 including the dedication of a local funding source to moderate income housing or the adoption
866 of a land use ordinance that requires 10% or more of new residential development in a
867 residential zone be dedicated to moderate income housing.
868 (iii) If a specified county, as defined in Section 17-27a-408, has created a small public
869 transit district, as defined in Section 17B-2a-802, on or before January 1, 2022, the specified
870 county shall include as part of the specified county's recommended strategies under Subsection
871 (2)(b)(ii) a recommendation to implement the strategy described in Subsection (2)(b)(ii)(Q).
872 (iv) The planning commission shall identify each moderate income housing strategy
873 recommended to the legislative body for implementation by restating the exact language used
874 to describe the strategy in Subsection (2)(b)(ii).
875 (c) In drafting the land use element, the planning commission shall:
876 (i) identify and consider each agriculture protection area within the unincorporated area
877 of the county or mountainous planning district;
878 (ii) avoid proposing a use of land within an agriculture protection area that is
879 inconsistent with or detrimental to the use of the land for agriculture; and
880 (iii) consider and coordinate with any station area plans adopted by municipalities
881 located within the county under Section 10-9a-403.1.
882 (d) In drafting the transportation and traffic circulation element, the planning
883 commission shall:
884 (i) (A) consider and coordinate with the regional transportation plan developed by the
885 county's region's metropolitan planning organization, if the relevant areas of the county are
886 within the boundaries of a metropolitan planning organization; or
887 (B) consider and coordinate with the long-range transportation plan developed by the
888 Department of Transportation, if the relevant areas of the county are not within the boundaries
889 of a metropolitan planning organization; and
890 (ii) consider and coordinate with any station area plans adopted by municipalities
891 located within the county under Section 10-9a-403.1.
892 (e) (i) In drafting the implementation plan portion of the moderate income housing
893 element as described in Subsection (2)(a)(iii)(C), the planning commission shall [
894 recommend to the legislative body the establishment of a five-year timeline for implementing
895 each of the moderate income housing strategies selected by the county for implementation.
896 (ii) The timeline described in Subsection (2)(e)(i) shall:
897 (A) identify specific measures and benchmarks for implementing each moderate
898 income housing strategy selected by the county; and
899 (B) provide flexibility for the county to make adjustments as needed.
900 (f) In drafting the water use and preservation element, the planning commission:
901 (i) shall consider applicable regional water conservation goals recommended by the
902 Division of Water Resources;
903 (ii) shall include a recommendation for:
904 (A) water conservation policies to be determined by the county; and
905 (B) landscaping options within a public street for current and future development that
906 do not require the use of lawn or turf in a parkstrip;
907 (iii) shall review the county's land use ordinances and include a recommendation for
908 changes to an ordinance that promotes the inefficient use of water;
909 (iv) shall consider principles of sustainable landscaping, including the:
910 (A) reduction or limitation of the use of lawn or turf;
911 (B) promotion of site-specific landscape design that decreases stormwater runoff or
912 runoff of water used for irrigation;
913 (C) preservation and use of healthy trees that have a reasonable water requirement or
914 are resistant to dry soil conditions;
915 (D) elimination or regulation of ponds, pools, and other features that promote
916 unnecessary water evaporation;
917 (E) reduction of yard waste; and
918 (F) use of an irrigation system, including drip irrigation, best adapted to provide the
919 optimal amount of water to the plants being irrigated;
920 (v) may include recommendations for additional water demand reduction strategies,
921 including:
922 (A) creating a water budget associated with a particular type of development;
923 (B) adopting new or modified lot size, configuration, and landscaping standards that
924 will reduce water demand for new single family development;
925 (C) providing one or more water reduction incentives for existing landscapes and
926 irrigation systems and installation of water fixtures or systems that minimize water demand;
927 (D) discouraging incentives for economic development activities that do not adequately
928 account for water use or do not include strategies for reducing water demand; and
929 (E) adopting water concurrency standards requiring that adequate water supplies and
930 facilities are or will be in place for new development; and
931 (vi) shall include a recommendation for low water use landscaping standards for a new:
932 (A) commercial, industrial, or institutional development;
933 (B) common interest community, as defined in Section 57-25-102; or
934 (C) multifamily housing project.
935 (3) The proposed general plan may include:
936 (a) an environmental element that addresses:
937 (i) to the extent not covered by the county's resource management plan, the protection,
938 conservation, development, and use of natural resources, including the quality of:
939 (A) air;
940 (B) forests;
941 (C) soils;
942 (D) rivers;
943 (E) groundwater and other waters;
944 (F) harbors;
945 (G) fisheries;
946 (H) wildlife;
947 (I) minerals; and
948 (J) other natural resources; and
949 (ii) (A) the reclamation of land, flood control, prevention and control of the pollution
950 of streams and other waters;
951 (B) the regulation of the use of land on hillsides, stream channels and other
952 environmentally sensitive areas;
953 (C) the prevention, control, and correction of the erosion of soils;
954 (D) the preservation and enhancement of watersheds and wetlands; and
955 (E) the mapping of known geologic hazards;
956 (b) a public services and facilities element showing general plans for sewage, water,
957 waste disposal, drainage, public utilities, rights-of-way, easements, and facilities for them,
958 police and fire protection, and other public services;
959 (c) a rehabilitation, redevelopment, and conservation element consisting of plans and
960 programs for:
961 (i) historic preservation;
962 (ii) the diminution or elimination of a development impediment as defined in Section
963 17C-1-102; and
964 (iii) redevelopment of land, including housing sites, business and industrial sites, and
965 public building sites;
966 (d) an economic element composed of appropriate studies and forecasts, as well as an
967 economic development plan, which may include review of existing and projected county
968 revenue and expenditures, revenue sources, identification of basic and secondary industry,
969 primary and secondary market areas, employment, and retail sales activity;
970 (e) recommendations for implementing all or any portion of the general plan, including
971 the adoption of land and water use ordinances, capital improvement plans, community
972 development and promotion, and any other appropriate action;
973 (f) provisions addressing any of the matters listed in Subsection 17-27a-401(2) or
974 (3)(a)(i); and
975 (g) any other element the county considers appropriate.
976 Section 6. Section 17-27a-408 is amended to read:
977 17-27a-408. Moderate income housing report -- Contents -- Prioritization for
978 funds or projects -- Ineligibility for funds after noncompliance -- Civil actions.
979 (1) As used in this section:
980 (a) "Division" means the Housing and Community Development Division within the
981 Department of Workforce Services.
982 (b) "Implementation plan" means the implementation plan adopted as part of the
983 moderate income housing element of a specified county's general plan as provided in
984 Subsection [
985 (c) [
986 moderate income housing report described in Subsection [
987 (d) "Moderate income housing strategy" means a strategy described in Subsection
988 17-27a-403(2)(b)(ii).
989 (e) "Report" means an initial report or a subsequent report.
990 [
991 has a population of more than 5,000 in the county's unincorporated areas.
992 (g) "Subsequent progress report" means the annual moderate income housing report
993 described in Subsection (3).
994 (2) (a) [
995 legislative body of a specified county shall annually submit [
996
997 (b) (i) This Subsection (2)(b) applies to a county that is not a specified county as of
998 January 1, 2023.
999 (ii) If a county described in Subsection (2)(b)(i) changes from one class to another or
1000 grows in population to qualify as a specified county, the county shall submit an initial plan to
1001 the division on or before August 1 of the first calendar year beginning on January 1 in which
1002 the county qualifies as a specified county.
1003 [
1004 (c) The initial report shall:
1005 (i) [
1006 specified county for continued, ongoing, or one-time implementation, using the exact language
1007 used to describe the moderate income housing strategy in Subsection 17-27a-403(2)(b)(ii); and
1008 (ii) include an implementation plan.
1009 [
1010
1011 specified county shall, as an administrative act, annually submit to the division a subsequent
1012 progress report on or before August 1 of each year after the year in which the specified county
1013 is required to submit the initial report.
1014 (b) The subsequent progress report shall include:
1015 [
1016 [
1017 ongoing, taken by the specified county during the previous [
1018 implement the moderate income housing strategies [
1019 in the initial report for implementation;
1020 [
1021 specified county during the previous [
1022 income housing strategies, including an explanation of how the land use regulation or land use
1023 decision supports the specified county's efforts to implement the moderate income housing
1024 strategies;
1025 [
1026 previous [
1027 strategies; [
1028 [
1029 accessory dwelling units located within the specified county for which the specified county:
1030 (A) issued a building permit to construct; or
1031 (B) issued a business license or comparable license or permit to rent;
1032 [
1033 income housing strategies, including the number of entitled moderate income housing units or
1034 other relevant data; [
1035 [
1036 implementing the moderate income housing strategies.
1037 (c) For purposes of describing actions taken by a specified county under Subsection
1038 (3)(b)(i), the specified county may include an ongoing action taken by the specified county
1039 prior to the 12-month reporting period applicable to the subsequent progress report if the
1040 specified county:
1041 (i) has already adopted an ordinance, approved a land use application, made an
1042 investment, or approved an agreement or financing that substantially promotes the
1043 implementation of a moderate income housing strategy identified in the initial report; and
1044 (ii) demonstrates in the subsequent progress report that the action taken under
1045 Subsection (3)(c)(i) is relevant to making meaningful progress towards the specified county's
1046 implementation plan.
1047 (d) [
1048 (i) approved by the division; and
1049 (ii) made available by the division on or before [
1050 report is required.
1051 [
1052 county's [
1053 (a) post the report on the division's website;
1054 (b) send a copy of the report to the Department of Transportation, the Governor's
1055 Office of Planning and Budget, the association of governments in which the specified county is
1056 located, and, if the unincorporated area of the specified county is located within the boundaries
1057 of a metropolitan planning organization, the appropriate metropolitan planning organization;
1058 and
1059 (c) subject to Subsection [
1060 [
1061 [
1062 An initial report does not comply with this section unless the report:
1063 (i) includes the information required under Subsection [
1064 (ii) subject to Subsection (5)(c), demonstrates to the division that the specified county
1065 made plans to implement three or more moderate income housing strategies; and
1066 (iii) is in a form approved by the division.
1067 (b) [
1068 subsequent progress report does not comply with this section unless the report:
1069 [
1070 [
1071 county made plans to implement three or more moderate income housing strategies;
1072 [
1073 [
1074 (A) assess the specified county's progress in implementing the moderate income
1075 housing strategies;
1076 (B) monitor compliance with the specified county's implementation plan;
1077 (C) identify a clear correlation between the specified county's land use decisions and
1078 efforts to implement the moderate income housing strategies; [
1079 (D) identify how the market has responded to the specified county's selected moderate
1080 income housing strategies[
1081 (E) identify any barriers encountered by the specified county in implementing the
1082 selected moderate income housing strategies.
1083 (c) (i) This Subsection (5)(c) applies to a specified county that has created a small
1084 public transit district, as defined in Section 17B-2a-802, on or before January 1, 2022.
1085 (ii) In addition to the requirements of Subsections (5)(a) and (b), a report for a
1086 specified county described in Subsection (5)(c)(i) does not comply with this section unless the
1087 report demonstrates to the division that the specified county:
1088 (A) made plans to implement the moderate income housing strategy described in
1089 Subsection 17-27a-403(2)(b)(ii)(Q); and
1090 (B) is in compliance with Subsection 63N-3-603(8).
1091 [
1092 Subsection [
1093 (i) complies with [
1094 (ii) demonstrates to the division that the specified county made plans to implement five
1095 or more moderate income housing strategies.
1096 (b) The [
1097 Subsection 72-1-304(3)(c), give priority consideration to transportation projects located within
1098 the unincorporated areas of a specified county described in Subsection [
1099
1100 Department of Transportation receives notice from the division under Subsection (6)(e).
1101 [
1102
1103
1104 [
1105
1106
1107 (c) Upon determining that a specified county qualifies for priority consideration under
1108 this Subsection [
1109 of the specified county, the Department of Transportation, and the Governor's Office of
1110 Planning and Budget.
1111 (d) The notice described in Subsection [
1112 (i) name the specified county that qualifies for priority consideration;
1113 (ii) describe the funds or projects for which the specified county qualifies to receive
1114 priority consideration; and
1115 [
1116
1117 [
1118 qualifies for priority consideration.
1119 (e) The division shall notify the legislative body of a specified county and the
1120 Department of Transportation in writing if the division determines that the specified county no
1121 longer qualifies for priority consideration under this Subsection (6).
1122 [
1123
1124 the division shall send a notice of noncompliance to the legislative body of the specified
1125 county.
1126 (b) A specified county that receives a notice of noncompliance may:
1127 (i) cure each deficiency in the report within 90 days after the day on which the notice of
1128 noncompliance is sent; or
1129 (ii) request an appeal of the division's determination of noncompliance within 10 days
1130 after the day on which the notice of noncompliance is sent.
1131 [
1132 (i) describe each deficiency in the report and the actions needed to cure each
1133 deficiency;
1134 (ii) state that the specified county has an opportunity to [
1135 (A) submit to the division a corrected report that cures each deficiency in the report
1136 within 90 days after the day on which the notice of noncompliance is sent; [
1137 (B) submit to the division a request for an appeal of the division's determination of
1138 noncompliance within 10 days after the day on which the notice of noncompliance is sent; and
1139 (iii) state that failure to [
1140
1141 ineligibility for funds under Subsection [
1142 (d) For purposes of curing the deficiencies in a report under this Subsection (7), if the
1143 action needed to cure the deficiency as described by the division requires the specified county
1144 to make a legislative change, the specified county may cure the deficiency by making that
1145 legislative change within the 90-day cure period.
1146 (e) (i) If a specified county submits to the division a corrected report in accordance
1147 with Subsection (7)(b)(i), and the division determines that the corrected report does not comply
1148 with this section, the division shall send a second notice of noncompliance to the legislative
1149 body of the specified county.
1150 (ii) A specified county that receives a second notice of noncompliance may request an
1151 appeal of the division's determination of noncompliance within 10 days after the day on which
1152 the second notice of noncompliance is sent.
1153 (iii) The notice described in Subsection (7)(e)(i) shall:
1154 (A) state that the specified county has an opportunity to submit to the division a request
1155 for an appeal of the division's determination of noncompliance within 10 days after the day on
1156 which the second notice of noncompliance is sent; and
1157 (B) state that failure to take action under Subsection (7)(e)(iii)(A) will result in the
1158 specified county's ineligibility for funds under Subsection (9).
1159 (8) (a) A specified county that receives a notice of noncompliance under Subsection
1160 (7)(a) or (7)(e)(i) may request an appeal of the division's determination of noncompliance
1161 within 10 days after the day on which the notice of noncompliance is sent.
1162 (b) Within 90 days after the day on which the division receives a request for an appeal,
1163 an appeal board consisting of the following three members shall review and issue a written
1164 decision on the appeal:
1165 (i) one individual appointed by the Utah Association of Counties;
1166 (ii) one individual appointed by the Utah Homebuilders Association; and
1167 (iii) one individual appointed by the presiding member of the association of
1168 governments, established pursuant to an interlocal agreement under Title 11, Chapter 13,
1169 Interlocal Cooperation Act, of which the specified county is a member.
1170 (c) The written decision of the appeal board shall either uphold or reverse the division's
1171 determination of noncompliance.
1172 (d) The appeal board's written decision on the appeal is final.
1173 [
1174
1175 (i) the specified county fails to submit a [
1176 division; [
1177 (ii) [
1178
1179 comply with this section and the specified county fails to:
1180 (A) cure each deficiency in the report within 90 days after the day on which the
1181 [
1182 or
1183 (B) request an appeal of the division's determination of noncompliance within 10 days
1184 after the day on which the notice of noncompliance is sent;
1185 (iii) after submitting to the division a corrected report to cure the deficiencies in a
1186 previously-submitted report, the division determines that the corrected report does not comply
1187 with this section and the specified county fails to request an appeal of the division's
1188 determination of noncompliance within 10 days after the day on which the second notice of
1189 noncompliance is sent; or
1190 (iv) after submitting a request for an appeal under Subsection (8), the appeal board
1191 issues a written decision upholding the division's determination of noncompliance.
1192 (b) The following apply to a specified county described in Subsection [
1193
1194 division provides notice under Subsection (9)(e):
1195 (i) the executive director of the Department of Transportation may not program funds
1196 from the Transportation Investment Fund of 2005, including the Transit Transportation
1197 Investment Fund, to projects located within the unincorporated areas of the specified county in
1198 accordance with Subsection 72-2-124(6); and
1199 (ii) the Governor's Office of Planning and Budget may not award financial grants to the
1200 specified county under the COVID-19 Local Assistance Matching Grant Program in
1201 accordance with Subsection 63J-4-802(7).
1202 (c) Upon determining that a specified county is ineligible for funds under this
1203 Subsection [
1204 the specified county, the Department of Transportation, and the Governor's Office of Planning
1205 and Budget.
1206 (d) The notice described in Subsection [
1207 (i) name the specified county that is ineligible for funds;
1208 (ii) describe the funds for which the specified county is ineligible to receive; and
1209 [
1210
1211 [
1212 ineligible for funds.
1213 (e) The division shall notify the legislative body of a specified county and the
1214 Department of Transportation in writing if the division determines that the provisions of this
1215 Subsection (9) no longer apply to the specified county.
1216 [
1217 or of Subsection 17-27a-404(5)(c), a plaintiff may not recover damages but may be awarded
1218 only injunctive or other equitable relief.
1219 Section 7. Section 35A-8-2401 is enacted to read:
1220
1221 35A-8-2401. Accounting for expenditures authorized by the Utah Housing
1222 Preservation Fund.
1223 (1) This section applies to funds appropriated by the Legislature to the department for
1224 pass-through to the Utah Housing Preservation Fund.
1225 (2) The department shall include in the annual written report described in Section
1226 35A-1-109 a report accounting for the expenditures authorized by the Utah Housing
1227 Preservation Fund.
1228 Section 8. Section 35A-16-701 is enacted to read:
1229
1230 35A-16-701. Housing Support Grant Program created.
1231 (1) There is created the Housing Support Grant Program administered by the office.
1232 (2) Subject to appropriations from the Legislature, the office shall distribute money to
1233 fund one or more projects that:
1234 (a) include affordable housing units for households whose income is no more than 30%
1235 of the area median income for households of the same size in the county or municipality in
1236 which the project is located; and
1237 (b) have been approved by the homelessness council.
1238 (3) The office shall:
1239 (a) administer the grant program, including:
1240 (i) reviewing grant applications and making recommendations to the homelessness
1241 council; and
1242 (ii) distributing grant money to approved grant recipients; and
1243 (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1244 make rules to administer the program, including:
1245 (i) grant application requirements;
1246 (ii) procedures to approve a grant; and
1247 (iii) procedures for distributing money to grant recipients.
1248 (4) When reviewing an application for approval, the homelessness council shall
1249 consider:
1250 (a) an applicant's rental income plan;
1251 (b) proposed case management and service plans for households;
1252 (c) any matching funds proposed by an applicant;
1253 (d) proposed restrictions, including deed restrictions, and the duration of restrictions on
1254 housing units to facilitate long-term assistance to households; and
1255 (e) any other considerations as adopted by the council.
1256 (5) On or before October 1, the coordinator, in cooperation with the homelessness
1257 council, shall submit an annual report electronically to the Social Services Appropriations
1258 Subcommittee that gives a complete account of the office's disbursement of funds under this
1259 section.
1260 Section 9. Section 59-7-607 is amended to read:
1261 59-7-607. Utah low-income housing tax credit.
1262 (1) As used in this section:
1263 (a) "Allocation certificate" means a certificate in a form prescribed by the commission
1264 and issued by the [
1265 the aggregate amount of the tax credit awarded under this section to a qualified development
1266 and includes:
1267 (i) the aggregate annual amount of the tax credit awarded that may be claimed by one
1268 or more qualified taxpayers [
1269
1270 (ii) the credit period over which the tax credit may be claimed by one or more qualified
1271 taxpayers [
1272 (b) "Building" means a qualified low-income building as defined in Section 42(c),
1273 Internal Revenue Code.
1274 (c) "Corporation" means the Utah Housing Corporation created in Section 63H-8-201.
1275 [
1276 Subsection (5)(c), "credit period" means the same as that term is defined in Section 42(f)(1),
1277 Internal Revenue Code.
1278 [
1279 housing sponsor [
1280 shareholders that will provide information to the [
1281 regarding the [
1282 [
1283
1284
1285 [
1286
1287
1288 [
1289 in Section 42, Internal Revenue Code.
1290 [
1291 (h) "Pass-through entity" means the same as that term is defined in Section
1292 59-10-1402.
1293 (i) (i) Subject to Subsection (1)(i)(ii), "pass-through entity taxpayer" means the same as
1294 that term is defined in Section 59-10-1402.
1295 (ii) The determination of whether a pass-through entity taxpayer is considered a
1296 partner, member, or shareholder of a pass-through entity shall be made in accordance with
1297 applicable state law governing the pass-through entity.
1298 [
1299 [
1300 Code.
1301 [
1302 (i) as defined in Section 42(g)(1), Internal Revenue Code; and
1303 (ii) that is located in the state.
1304 [
1305 (A) owns a direct interest or an indirect interest, through one or more pass-through
1306 entities, in a qualified development; and
1307 (B) meets the requirements to claim a tax credit under this section.
1308 (ii) "Qualified taxpayer" includes a pass-through entity taxpayer to which a tax credit
1309 under this section is passed through by a pass-through entity.
1310 [
1311
1312
1313 [
1314 [
1315 [
1316
1317 [
1318
1319 [
1320
1321
1322
1323
1324 (2) (a) [
1325
1326
1327 section against taxes otherwise due under this chapter, Chapter 8, Gross Receipts Tax on
1328 Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act, or Chapter
1329 9, Taxation of Admitted Insurers.
1330 (b) The tax credit shall be in an amount equal to the tax credit amount specified on the
1331 [
1332
1333 (c) (i) For a calendar year beginning on or before December 31, 2016, the aggregate
1334 annual tax credit that the [
1335 the credit period [
1336 and Section 59-10-1010 is an amount equal to the product of:
1337 (A) 12.5 cents; and
1338 (B) the population of Utah.
1339 (ii) For a calendar year beginning on or after January 1, 2017, but beginning on or
1340 before December 31, 2022, the aggregate annual tax credit that the [
1341 corporation may allocate for each year of the credit period [
1342
1343 product of:
1344 (A) 34.5 cents; and
1345 (B) the population of Utah.
1346 (iii) For a calendar year beginning on or after January 1, 2023, but beginning on or
1347 before December 31, 2032, the aggregate annual tax credit that the corporation may allocate for
1348 each year of the credit period pursuant to this section and Section 59-10-1010 is $10,000,000.
1349 (iv) For a calendar year beginning on or after January 1, 2033, the aggregate annual tax
1350 credit that the corporation may allocate for each year of the credit period pursuant to this
1351 section and Section 59-10-1010 is the amount described in Subsection (2)(c)(ii).
1352 [
1353 be determined in accordance with Section 146(j), Internal Revenue Code.
1354 (d) (i) Subject to Subsection (2)(d)(ii), a qualified taxpayer that is a pass-through entity
1355 may allocate a tax credit under this section to one or more of the pass-through entity's
1356 pass-through entity taxpayers in any manner agreed upon, regardless of whether:
1357 (A) the pass-through entity taxpayer is eligible to claim any portion of a federal
1358 low-income housing tax credit for the qualified development;
1359 (B) the allocation of the tax credit has substantial economic effect within the meaning
1360 of Section 704(b), Internal Revenue Code; or
1361 (C) the pass-through entity taxpayer is considered a partner for federal income tax
1362 purposes.
1363 (ii) With respect to a tax year, a qualified taxpayer that is a pass-through entity
1364 taxpayer may claim a tax credit allocated to the qualified taxpayer by a pass-through entity
1365 under Subsection (2)(d)(i) so long as the qualified taxpayer's ownership interest in the
1366 pass-through entity is:
1367 (A) acquired on or before December 31 of the tax year to which the tax credit relates;
1368 and
1369 (B) reflected in the report required in Subsection (6)(b) for the tax year to which the tax
1370 credit relates.
1371 (e) If a qualified taxpayer that is a pass-through entity taxpayer assigns to another
1372 taxpayer the pass-through entity taxpayer's ownership interest in a pass-through entity,
1373 including the pass-through entity taxpayer's interest in the tax credit associated with the
1374 ownership interest, the assignee shall be considered a qualified taxpayer and may claim the tax
1375 credit so long as the assignee's ownership interest in the pass-through entity is:
1376 (i) acquired on or before December 31 of the tax year to which the tax credit relates;
1377 and
1378 (ii) reflected in the report required in Subsection (6)(b) for the tax year to which the tax
1379 credit relates.
1380 (3) (a) The [
1381 procedures for allocating the tax credit under this section and Section 59-10-1010 and
1382 incorporate the criteria and procedures into the [
1383 qualified allocation plan.
1384 (b) The [
1385 Subsection (3)(a) based on:
1386 (i) the number of affordable housing units to be created in Utah for low and moderate
1387 income persons in a qualified development;
1388 (ii) the level of area median income being served by a qualified development;
1389 (iii) the need for the tax credit for the economic feasibility of a qualified development;
1390 and
1391 (iv) the extended period for which a qualified development commits to remain as
1392 affordable housing.
1393 (4) Any housing sponsor may apply to the [
1394 a tax credit allocation under this section.
1395 (5) (a) (i) The [
1396 the tax credit to allocate to a qualified development in accordance with the qualified allocation
1397 plan [
1398 (ii) (A) Before the allocation certificate is issued to the housing sponsor, the
1399 corporation shall send to the housing sponsor written notice of the corporation's preliminary
1400 determination of the tax credit amount to be allocated to the qualified development.
1401 (B) The notice described in Subsection (5)(a)(ii)(A) shall specify the corporation's
1402 preliminary determination of the tax credit amount to be allocated to the qualified development
1403 for each year of the credit period and state that allocation of the tax credit is contingent upon
1404 the issuance of an allocation certificate.
1405 [
1406 in accordance with the qualified allocation plan, the corporation shall issue an allocation
1407 certificate to [
1408 [
1409
1410
1411 [
1412 exceed 100% of the federal low-income housing tax credit awarded to a qualified development.
1413 (b) (i) Notwithstanding Subsection (5)(a), if a housing sponsor applies to the
1414 corporation for a tax credit under this section and an allocation certificate is not yet issued, a
1415 qualified taxpayer may claim a tax credit based upon the corporation's preliminary
1416 determination of the tax credit amount as stated in the notice under Subsection (5)(a)(ii).
1417 (ii) Upon issuance of the allocation certificate to the housing sponsor, a qualified
1418 taxpayer that claims a tax credit under this Subsection (5)(b) shall file an amended tax return to
1419 adjust the tax credit amount if the amount previously claimed by the qualified taxpayer is
1420 different than the amount specified in the allocation certificate.
1421 (c) The amount of tax credit that may be claimed in the first year of the credit period
1422 may not be reduced as a result of the calculation in Section 42(f)(2), Internal Revenue Code.
1423 (d) On or before January 31 of each year, the corporation shall provide to the
1424 commission in a form prescribed by the commission a report that describes each allocation
1425 certificate that the corporation issued during the previous calendar year.
1426 (6) (a) A housing sponsor shall provide to the commission identification of the housing
1427 sponsor's designated reporter.
1428 (b) [
1429
1430
1431 under this section, the designated reporter shall provide to the commission in a form prescribed
1432 by the commission:
1433 [
1434 the tax credit awarded in [
1435 [
1436 credit that has been [
1437 (6)(b)(i) for that tax year; and
1438 [
1439
1440
1441 information, as prescribed by the commission, to demonstrate that the aggregate annual amount
1442 of tax credits allocated to all qualified taxpayers for that tax year does not exceed the aggregate
1443 annual tax credit amount specified in the allocation certificate.
1444 [
1445
1446 [
1447
1448 [
1449
1450
1451 [
1452 Revenue Code, shall apply to this section.
1453 (b) (i) If a qualified development is required to recapture a portion of any federal
1454 low-income housing tax credit, then each qualified taxpayer that has been allocated a portion of
1455 a tax credit under this section shall also be required to recapture a portion of [
1456
1457 (ii) The state recapture amount shall be equal to the percentage of the state tax credit
1458 that equals the proportion the federal recapture amount bears to the original federal low-income
1459 housing tax credit amount subject to recapture.
1460 (iii) The designated reporter shall identify each qualified taxpayer that is required to
1461 recapture a portion of any state tax credit as described in this Subsection [
1462 [
1463 any year may be reallocated within the same time period as provided in Section 42, Internal
1464 Revenue Code.
1465 (b) Tax credits that are unallocated by the [
1466 any year may be carried over for allocation in subsequent years.
1467 [
1468 is earned because the tax credit is more than the tax owed by the qualified taxpayer, the tax
1469 credit may be carried back three years or may be carried forward five years as a credit against
1470 the tax.
1471 (b) Carryover tax credits under Subsection [
1472 tax:
1473 (i) before the application of the tax credits earned in the current year; and
1474 (ii) on a first-earned first-used basis.
1475 [
1476
1477
1478
1479 [
1480
1481
1482 [
1483
1484 [
1485
1486
1487
1488
1489 [
1490
1491 [
1492
1493
1494
1495 [
1496
1497
1498 [
1499 commission.
1500 [
1501 electronic report to the Revenue and Taxation Interim Committee [
1502 that includes:
1503 (a) the purpose and effectiveness of the tax credits; [
1504 (b) any recommendations for legislative changes to the aggregate tax credit amount that
1505 the corporation is authorized to allocate each year under Subsection (2)(c); and
1506 [
1507 [
1508 corporation, make rules in accordance with Title 63G, Chapter 3, Utah Administrative
1509 Rulemaking Act, to implement this section.
1510 (13) (a) Beginning in 2026, and every three years thereafter, the Revenue and Taxation
1511 Interim Committee shall conduct a review of the aggregate tax credit amount that the
1512 corporation is authorized to allocate and has allocated each year under Subsection (2)(c).
1513 (b) In a review under this Subsection (13), the Revenue and Taxation Interim
1514 Committee shall:
1515 (i) study any recommendations provided by the corporation under Subsection (11)(b);
1516 and
1517 (ii) if the Revenue and Taxation Interim Committee decides to recommend legislative
1518 action to the Legislature, prepare legislation for consideration by the Legislature in the next
1519 general session.
1520 Section 10. Section 59-9-108 is amended to read:
1521 59-9-108. Utah low-income housing tax credit.
1522 (1) As used in this section[
1523 (a) for a person claiming a tax credit under Section 59-7-607, the same as that term is
1524 defined in Section 59-7-607; or
1525 (b) for a person claiming a tax credit under Section 59-10-1010, the same as that term
1526 is defined in Section 59-10-1010.
1527 [
1528 [
1529
1530 (2) A person may claim a nonrefundable tax credit against a tax liability under this
1531 section if:
1532 (a) the person is a qualified taxpayer who has been issued [
1533
1534 59-7-607 or 59-10-1010, and the qualified taxpayer does not claim the tax credit under [
1535
1536
1537
1538 Taxes, Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay Corporate
1539 Franchise or Income Tax Act, or Chapter 10, Individual Income Tax Act; or
1540 (b) the person has been [
1541 in accordance with [
1542 or 59-10-1010, and the person does not claim the tax credit under [
1543
1544
1545
1546 Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay Corporate
1547 Franchise or Income Tax Act, or Chapter 10, Individual Income Tax Act.
1548 (3) (a) If a tax credit is not claimed by a qualified taxpayer or by a person who has been
1549 [
1550 earned because the tax credit is more than the tax liability owed, the tax credit may be carried
1551 back three years or may be carried forward five years as a credit against the tax liability.
1552 (b) Carryover tax credits under Subsection (3)(a) shall be applied against tax liability:
1553 (i) before the application of tax credits earned in the current year; and
1554 (ii) on a first-earned, first-used basis.
1555 (4) The commission may, in consultation with the Utah Housing Corporation, make
1556 rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to
1557 implement this section.
1558 Section 11. Section 59-10-1010 is amended to read:
1559 59-10-1010. Utah low-income housing tax credit.
1560 (1) As used in this section:
1561 (a) "Allocation certificate" means a certificate in a form prescribed by the commission
1562 and issued by the [
1563 the aggregate amount of the tax credit awarded under this section to a qualified development
1564 and includes:
1565 (i) the aggregate annual amount of the tax credit awarded that may be claimed by one
1566 or more qualified taxpayers [
1567
1568 (ii) the credit period over which the tax credit may be claimed by one or more qualified
1569 taxpayers [
1570 (b) "Building" means a qualified low-income building as defined in Section 42(c),
1571 Internal Revenue Code.
1572 (c) "Corporation" means the Utah Housing Corporation created in Section 63H-8-201.
1573 [
1574 Subsection (5)(c), "credit period" means the same as that term is defined in Section 42(f)(1),
1575 Internal Revenue Code.
1576 [
1577 housing sponsor [
1578 shareholders that will provide information to the [
1579 regarding the [
1580 [
1581
1582
1583 [
1584
1585
1586 [
1587 credit described in Section 42, Internal Revenue Code.
1588 [
1589 (h) "Pass-through entity" means the same as that term is defined in Section
1590 59-10-1402.
1591 (i) (i) Subject to Subsection (1)(i)(ii), "pass-through entity taxpayer" means the same as
1592 that term is defined in Section 59-10-1402.
1593 (ii) The determination of whether a pass-through entity taxpayer is considered a
1594 partner, member, or shareholder of a pass-through entity shall be made in accordance with
1595 applicable state law governing the pass-through entity.
1596 [
1597 [
1598 Code.
1599 [
1600 (i) as defined in Section 42(g)(1), Internal Revenue Code; and
1601 (ii) that is located in the state.
1602 [
1603 (A) owns a direct or indirect interest, through one or more pass-through entities, in a
1604 qualified development; and
1605 (B) meets the requirements to claim a tax credit under this section.
1606 (ii) "Qualified taxpayer" includes a pass-through entity taxpayer to which a tax credit
1607 under this section is passed through by a pass-through entity.
1608 [
1609
1610
1611 [
1612 [
1613 [
1614
1615 [
1616
1617 [
1618
1619
1620
1621
1622 (2) (a) [
1623
1624
1625 against taxes otherwise due under this chapter.
1626 (b) The tax credit shall be in an amount equal to the tax credit amount specified on the
1627 [
1628
1629 (c) (i) For a calendar year beginning on or before December 31, 2016, the aggregate
1630 annual tax credit that the [
1631 the credit period [
1632 and Section 59-7-607 is an amount equal to the product of:
1633 (A) 12.5 cents; and
1634 (B) the population of Utah.
1635 (ii) For a calendar year beginning on or after January 1, 2017, but beginning on or
1636 before December 31, 2022, the aggregate annual tax credit that the [
1637 corporation may allocate for each year of the credit period [
1638
1639 product of:
1640 (A) 34.5 cents; and
1641 (B) the population of Utah.
1642 (iii) For a calendar year beginning on or after January 1, 2023, but beginning on or
1643 before December 31, 2032, the aggregate annual tax credit that the corporation may allocate for
1644 each year of the credit period pursuant to this section and Section 59-7-607 is $10,000,000.
1645 (iv) For a calendar year beginning on or after January 1, 2033, the aggregate annual tax
1646 credit that the corporation may allocate for each year of the credit period pursuant to this
1647 section and Section 59-7-607 is the amount described in Subsection (2)(c)(ii).
1648 [
1649 be determined in accordance with Section 146(j), Internal Revenue Code.
1650 (d) (i) Subject to Subsection (2)(d)(ii), a qualified taxpayer that is a pass-through entity
1651 may allocate a tax credit under this section to one or more of the pass-through entity's
1652 pass-through entity taxpayers in any manner agreed upon, regardless of whether:
1653 (A) the pass-through entity taxpayer is eligible to claim any portion of a federal
1654 low-income housing tax credit for the qualified development;
1655 (B) the allocation of the tax credit has substantial economic effect within the meaning
1656 of Section 704(b), Internal Revenue Code; or
1657 (C) the pass-through entity taxpayer is considered a partner for federal income tax
1658 purposes.
1659 (ii) With respect to a tax year, a qualified taxpayer that is a pass-through entity
1660 taxpayer may claim a tax credit allocated to the qualified taxpayer by a pass-through entity
1661 under Subsection (2)(d)(i) so long as the qualified taxpayer's ownership interest in the
1662 pass-through entity is:
1663 (A) acquired on or before December 31 of the tax year to which the tax credit relates;
1664 and
1665 (B) reflected in the report required in Subsection (6)(b) for the tax year to which the tax
1666 credit relates.
1667 (e) If a qualified taxpayer that is a pass-through entity taxpayer assigns to another
1668 taxpayer the pass-through entity taxpayer's ownership interest in a pass-through entity,
1669 including the pass-through entity taxpayer's interest in the tax credit associated with the
1670 ownership interest, the assignee shall be considered a qualified taxpayer and may claim the tax
1671 credit so long as the assignee's ownership interest in the pass-through entity is:
1672 (i) acquired on or before December 31 of the tax year to which the tax credit relates;
1673 and
1674 (ii) reflected in the report required in Subsection (6)(b) for the tax year to which the tax
1675 credit relates.
1676 (3) (a) The [
1677 procedures for allocating the tax credit under this section and Section 59-7-607 and incorporate
1678 the criteria and procedures into the [
1679 allocation plan.
1680 (b) The [
1681 Subsection (3)(a) based on:
1682 (i) the number of affordable housing units to be created in Utah for low and moderate
1683 income persons in a qualified development;
1684 (ii) the level of area median income being served by a qualified development;
1685 (iii) the need for the tax credit for the economic feasibility of a qualified development;
1686 and
1687 (iv) the extended period for which a qualified development commits to remain as
1688 affordable housing.
1689 (4) Any housing sponsor may apply to the [
1690 a tax credit allocation under this section.
1691 (5) (a) (i) The [
1692 the tax credit to allocate to a qualified development in accordance with the qualified allocation
1693 plan [
1694 (ii) (A) Before the allocation certificate is issued to the housing sponsor, the
1695 corporation shall send to the housing sponsor written notice of the corporation's preliminary
1696 determination of the tax credit amount to be allocated to the qualified development.
1697 (B) The notice described in Subsection (5)(a)(ii)(A) shall specify the corporation's
1698 preliminary determination of the tax credit amount to be allocated to the qualified development
1699 for each year of the credit period and state that allocation of the tax credit is contingent upon
1700 the issuance of an allocation certificate.
1701 [
1702 in accordance with the qualified allocation plan, the corporation shall issue an allocation
1703 certificate to [
1704 [
1705
1706
1707 [
1708 exceed 100% of the federal low-income housing credit awarded to a qualified development.
1709 (b) (i) Notwithstanding Subsection (5)(a), if a housing sponsor applies to the
1710 corporation for a tax credit under this section and an allocation certificate is not yet issued, a
1711 qualified taxpayer may claim a tax credit based upon the corporation's preliminary
1712 determination of the tax credit amount as stated in the notice under Subsection (5)(a)(ii).
1713 (ii) Upon issuance of the allocation certificate to the housing sponsor, a qualified
1714 taxpayer that claims a tax credit under this Subsection (5)(b) shall file an amended tax return to
1715 adjust the tax credit amount if the amount previously claimed by the qualified taxpayer is
1716 different than the amount specified in the allocation certificate.
1717 (c) The amount of tax credit that may be claimed in the first year of the credit period
1718 may not be reduced as a result of the calculation in Section 42(f)(2), Internal Revenue Code.
1719 (d) On or before January 31 of each year, the corporation shall provide to the
1720 commission in a form prescribed by the commission a report that describes each allocation
1721 certificate that the corporation issued during the previous calendar year.
1722 (6) (a) A housing sponsor shall provide to the commission identification of the housing
1723 sponsor's designated reporter.
1724 (b) [
1725
1726
1727 under this section, the designated reporter shall provide to the commission in a form prescribed
1728 by the commission:
1729 [
1730 the tax credit awarded in [
1731 [
1732 credit that has been [
1733 (6)(b)(i) for that tax year; and
1734 [
1735
1736
1737 information, as prescribed by the commission, to demonstrate that the aggregate annual amount
1738 of tax credits allocated to all qualified taxpayers for that tax year does not exceed the aggregate
1739 annual tax credit amount specified in the allocation certificate.
1740 [
1741
1742 [
1743
1744 [
1745
1746
1747 [
1748 Revenue Code, shall apply to this section.
1749 (b) (i) If a qualified taxpayer is required to recapture a portion of any federal
1750 low-income housing credit, the qualified taxpayer that has been allocated a portion of a tax
1751 credit under this section shall also be required to recapture a portion of [
1752
1753 (ii) The state recapture amount shall be equal to the percentage of the state tax credit
1754 that equals the proportion the federal recapture amount bears to the original federal low-income
1755 housing credit amount subject to recapture.
1756 (iii) The designated reporter shall identify each qualified taxpayer that is required to
1757 recapture a portion of any state tax credits as described in this Subsection [
1758 [
1759 any year may be reallocated within the same time period as provided in Section 42, Internal
1760 Revenue Code.
1761 (b) Tax credits that are unallocated by the [
1762 any year may be carried over for allocation in subsequent years.
1763 [
1764 is earned because the tax credit is more than the tax owed by the qualified taxpayer, the tax
1765 credit may be carried back three years or may be carried forward five years as a credit against
1766 the tax.
1767 (b) Carryover tax credits under Subsection [
1768 tax:
1769 (i) before the application of the tax credits earned in the current year; and
1770 (ii) on a first-earned first-used basis.
1771 [
1772
1773
1774
1775 [
1776
1777
1778 [
1779
1780 [
1781
1782
1783
1784
1785 [
1786
1787 [
1788
1789 [
1790
1791
1792
1793 [
1794 commission.
1795 [
1796 electronic report to the Revenue and Taxation Interim Committee [
1797 that includes:
1798 (a) the purpose and effectiveness of the tax credits; [
1799 (b) any recommendations for legislative changes to the aggregate tax credit amount that
1800 the corporation is authorized to allocate each year under Subsection (2)(c); and
1801 [
1802 [
1803 corporation, promulgate rules to implement this section.
1804 (13) (a) Beginning in 2026, and every three years thereafter, the Revenue and Taxation
1805 Interim Committee shall conduct a review of the aggregate tax credit amount that the
1806 corporation is authorized to allocate and has allocated each year under Subsection (2)(c).
1807 (b) In a review under this Subsection (13), the Revenue and Taxation Interim
1808 Committee shall:
1809 (i) study any recommendations provided by the corporation under Subsection (11)(b);
1810 and
1811 (ii) if the Revenue and Taxation Interim Committee decides to recommend legislative
1812 action to the Legislature, prepare legislation for consideration by the Legislature in the next
1813 general session.
1814 Section 12. Section 63J-4-802 is amended to read:
1815 63J-4-802. Creation of COVID-19 Local Assistance Matching Grant Program --
1816 Eligibility -- Duties of the office.
1817 (1) There is established a grant program known as COVID-19 Local Assistance
1818 Matching Grant Program that is administered by the office.
1819 (2) The office shall award financial grants to local governments that meet the
1820 qualifications described in Subsection (3) to provide support for:
1821 (a) projects or services that address the economic impacts of the COVID-19 emergency
1822 on housing insecurity, lack of affordable housing, or homelessness;
1823 (b) costs incurred in addressing public health challenges resulting from the COVID-19
1824 emergency;
1825 (c) necessary investments in water and sewer infrastructure; or
1826 (d) any other purpose authorized under the American Rescue Plan Act.
1827 (3) To be eligible for a grant under this part, a local government shall:
1828 (a) provide matching funds in an amount determined by the office; and
1829 (b) certify that the local government will spend grant funds:
1830 (i) on a purpose described in Subsection (2);
1831 (ii) within the time period determined by the office; and
1832 (iii) in accordance with the American Rescue Plan Act.
1833 (4) As soon as is practicable, but on or before September 15, 2021, the office shall,
1834 with recommendations from the review committee, establish:
1835 (a) procedures for applying for and awarding grants under this part, using an online
1836 grants management system that:
1837 (i) manages each grant throughout the duration of the grant;
1838 (ii) allows for:
1839 (A) online submission of grant applications; and
1840 (B) auditing and reporting for a local government that receives grant funds; and
1841 (iii) generates reports containing information about each grant;
1842 (b) criteria for awarding grants; and
1843 (c) reporting requirements for grant recipients.
1844 (5) Subject to appropriation, the office shall award grant funds on a competitive basis
1845 until December 31, 2024.
1846 [
1847
1848
1849
1850 [
1851
1852
1853
1854 [
1855 submit a report to the Executive Appropriations Committee that includes:
1856 (a) a summary of the procedures, criteria, and requirements established under
1857 Subsection (4);
1858 (b) a summary of the recommendations of the review committee under Section
1859 63J-4-803;
1860 (c) the number of applications submitted under the grant program during the previous
1861 year;
1862 (d) the number of grants awarded under the grant program during the previous year;
1863 (e) the aggregate amount of grant funds awarded under the grant program during the
1864 previous year; and
1865 (f) any other information the office considers relevant to evaluating the success of the
1866 grant program.
1867 [
1868 program to pay for administrative costs.
1869 Section 13. Section 72-1-304 is amended to read:
1870 72-1-304. Written project prioritization process for new transportation capacity
1871 projects -- Rulemaking.
1872 (1) (a) The Transportation Commission, in consultation with the department and the
1873 metropolitan planning organizations as defined in Section 72-1-208.5, shall develop a written
1874 prioritization process for the prioritization of:
1875 (i) new transportation capacity projects that are or will be part of the state highway
1876 system under Chapter 4, Part 1, State Highways;
1877 (ii) paved pedestrian or paved nonmotorized transportation projects that:
1878 (A) mitigate traffic congestion on the state highway system; and
1879 (B) are part of an active transportation plan approved by the department;
1880 (iii) public transit projects that directly add capacity to the public transit systems within
1881 the state, not including facilities ancillary to the public transit system; and
1882 (iv) pedestrian or nonmotorized transportation projects that provide connection to a
1883 public transit system.
1884 (b) (i) A local government or district may nominate a project for prioritization in
1885 accordance with the process established by the commission in rule.
1886 (ii) If a local government or district nominates a project for prioritization by the
1887 commission, the local government or district shall provide data and evidence to show that:
1888 (A) the project will advance the purposes and goals described in Section 72-1-211;
1889 (B) for a public transit project, the local government or district has an ongoing funding
1890 source for operations and maintenance of the proposed development; and
1891 (C) the local government or district will provide 40% of the costs for the project as
1892 required by Subsection 72-2-124(4)(a)(viii) or 72-2-124(9)(e).
1893 (2) The following shall be included in the written prioritization process under
1894 Subsection (1):
1895 (a) a description of how the strategic initiatives of the department adopted under
1896 Section 72-1-211 are advanced by the written prioritization process;
1897 (b) a definition of the type of projects to which the written prioritization process
1898 applies;
1899 (c) specification of a weighted criteria system that is used to rank proposed projects
1900 and how it will be used to determine which projects will be prioritized;
1901 (d) specification of the data that is necessary to apply the weighted ranking criteria; and
1902 (e) any other provisions the commission considers appropriate, which may include
1903 consideration of:
1904 (i) regional and statewide economic development impacts, including improved local
1905 access to:
1906 (A) employment;
1907 (B) educational facilities;
1908 (C) recreation;
1909 (D) commerce; and
1910 (E) residential areas, including moderate income housing as demonstrated in the local
1911 government's or district's general plan pursuant to Section 10-9a-403 or 17-27a-403;
1912 (ii) the extent to which local land use plans relevant to a project support and
1913 accomplish the strategic initiatives adopted under Section 72-1-211; and
1914 (iii) any matching funds provided by a political subdivision or public transit district in
1915 addition to the 40% required by Subsections 72-2-124(4)(a)(viii) and 72-2-124(9)(e).
1916 (3) (a) When prioritizing a public transit project that increases capacity, the
1917 commission:
1918 (i) may give priority consideration to projects that are part of a transit-oriented
1919 development or transit-supportive development as defined in Section 17B-2a-802; and
1920 (ii) shall give priority consideration to projects that are within the boundaries of a
1921 housing and transit reinvestment zone created pursuant to Title 63N, Chapter 3, Part 6,
1922 Housing and Transit Reinvestment Zone Act.
1923 (b) When prioritizing a transportation project that increases capacity, the commission
1924 may give priority consideration to projects that are:
1925 (i) part of a transportation reinvestment zone created under Section 11-13-227 if:
1926 (A) the state is a participant in the transportation reinvestment zone; or
1927 (B) the commission finds that the transportation reinvestment zone provides a benefit
1928 to the state transportation system; or
1929 (ii) within the boundaries of a housing and transit reinvestment zone created pursuant
1930 to Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act.
1931 (c) If the department receives a notice of prioritization for a municipality as described
1932 in Subsection 10-9a-408(5), or a notice of prioritization for a county as described in Subsection
1933 17-27a-408(5), the commission may[
1934 priority consideration to transportation projects that are within the boundaries of the
1935 municipality or the unincorporated areas of the county until the department receives
1936 notification from the Housing and Community Development Division within the Department
1937 of Workforce Services that the municipality or county no longer qualifies for prioritization
1938 under this Subsection (3)(c).
1939 (4) In developing the written prioritization process, the commission:
1940 (a) shall seek and consider public comment by holding public meetings at locations
1941 throughout the state; and
1942 (b) may not consider local matching dollars as provided under Section 72-2-123 unless
1943 the state provides an equal opportunity to raise local matching dollars for state highway
1944 improvements within each county.
1945 (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1946 Transportation Commission, in consultation with the department, shall make rules establishing
1947 the written prioritization process under Subsection (1).
1948 (6) The commission shall submit the proposed rules under this section to a committee
1949 or task force designated by the Legislative Management Committee for review prior to taking
1950 final action on the proposed rules or any proposed amendment to the rules described in
1951 Subsection (5).
1952 Section 14. Section 72-2-124 is amended to read:
1953 72-2-124. Transportation Investment Fund of 2005.
1954 (1) There is created a capital projects fund entitled the Transportation Investment Fund
1955 of 2005.
1956 (2) The fund consists of money generated from the following sources:
1957 (a) any voluntary contributions received for the maintenance, construction,
1958 reconstruction, or renovation of state and federal highways;
1959 (b) appropriations made to the fund by the Legislature;
1960 (c) registration fees designated under Section 41-1a-1201;
1961 (d) the sales and use tax revenues deposited into the fund in accordance with Section
1962 59-12-103; and
1963 (e) revenues transferred to the fund in accordance with Section 72-2-106.
1964 (3) (a) The fund shall earn interest.
1965 (b) All interest earned on fund money shall be deposited into the fund.
1966 (4) (a) Except as provided in Subsection (4)(b), the executive director may only use
1967 fund money to pay:
1968 (i) the costs of maintenance, construction, reconstruction, or renovation to state and
1969 federal highways prioritized by the Transportation Commission through the prioritization
1970 process for new transportation capacity projects adopted under Section 72-1-304;
1971 (ii) the costs of maintenance, construction, reconstruction, or renovation to the highway
1972 projects described in Subsections 63B-18-401(2), (3), and (4);
1973 (iii) principal, interest, and issuance costs of bonds authorized by Section 63B-18-401
1974 minus the costs paid from the County of the First Class Highway Projects Fund in accordance
1975 with Subsection 72-2-121(4)(e);
1976 (iv) for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
1977 Lake County Revenue Bond Sinking Fund created by Section 72-2-121.3 the amount certified
1978 by Salt Lake County in accordance with Subsection 72-2-121.3(4)(c) as necessary to pay the
1979 debt service on $30,000,000 of the revenue bonds issued by Salt Lake County;
1980 (v) principal, interest, and issuance costs of bonds authorized by Section 63B-16-101
1981 for projects prioritized in accordance with Section 72-2-125;
1982 (vi) all highway general obligation bonds that are intended to be paid from revenues in
1983 the Centennial Highway Fund created by Section 72-2-118;
1984 (vii) for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First
1985 Class Highway Projects Fund created in Section 72-2-121 to be used for the purposes described
1986 in Section 72-2-121;
1987 (viii) if a political subdivision provides a contribution equal to or greater than 40% of
1988 the costs needed for construction, reconstruction, or renovation of paved pedestrian or paved
1989 nonmotorized transportation for projects that:
1990 (A) mitigate traffic congestion on the state highway system;
1991 (B) are part of an active transportation plan approved by the department; and
1992 (C) are prioritized by the commission through the prioritization process for new
1993 transportation capacity projects adopted under Section 72-1-304;
1994 (ix) $705,000,000 for the costs of right-of-way acquisition, construction,
1995 reconstruction, or renovation of or improvement to the following projects:
1996 (A) the connector road between Main Street and 1600 North in the city of Vineyard;
1997 (B) Geneva Road from University Parkway to 1800 South;
1998 (C) the SR-97 interchange at 5600 South on I-15;
1999 (D) two lanes on U-111 from Herriman Parkway to 11800 South;
2000 (E) widening I-15 between mileposts 10 and 13 and the interchange at milepost 11;
2001 (F) improvements to 1600 North in Orem from 1200 West to State Street;
2002 (G) widening I-15 between mileposts 6 and 8;
2003 (H) widening 1600 South from Main Street in the city of Spanish Fork to SR-51;
2004 (I) widening US 6 from Sheep Creek to Mill Fork between mileposts 195 and 197 in
2005 Spanish Fork Canyon;
2006 (J) I-15 northbound between mileposts 43 and 56;
2007 (K) a passing lane on SR-132 between mileposts 41.1 and 43.7 between mileposts 43
2008 and 45.1;
2009 (L) east Zion SR-9 improvements;
2010 (M) Toquerville Parkway;
2011 (N) an environmental study on Foothill Boulevard in the city of Saratoga Springs;
2012 (O) using funds allocated in this Subsection (4)(a)(ix), and other sources of funds, for
2013 construction of an interchange on Bangerter Highway at 13400 South; and
2014 (P) an environmental impact study for Kimball Junction in Summit County; and
2015 (x) $28,000,000 as pass-through funds, to be distributed as necessary to pay project
2016 costs based upon a statement of cash flow that the local jurisdiction where the project is located
2017 provides to the department demonstrating the need for money for the project, for the following
2018 projects in the following amounts:
2019 (A) $5,000,000 for Payson Main Street repair and replacement;
2020 (B) $8,000,000 for a Bluffdale 14600 South railroad bypass;
2021 (C) $5,000,000 for improvements to 4700 South in Taylorsville; and
2022 (D) $10,000,000 for improvements to the west side frontage roads adjacent to U.S. 40
2023 between mile markers 7 and 10.
2024 (b) The executive director may use fund money to exchange for an equal or greater
2025 amount of federal transportation funds to be used as provided in Subsection (4)(a).
2026 (5) (a) Except as provided in Subsection (5)(b), if the department receives a notice of
2027 ineligibility for a municipality as described in Subsection 10-9a-408(7), the executive director
2028 may not program fund money to a project prioritized by the commission under Section
2029 72-1-304, including fund money from the Transit Transportation Investment Fund, within the
2030 boundaries of the municipality [
2031 department receives notification from the Housing and Community Development Division
2032 within the Department of Workforce Services that ineligibility under this Subsection (5) no
2033 longer applies to the municipality.
2034 (b) Within the boundaries of a municipality described in Subsection (5)(a), the
2035 executive director:
2036 (i) may program fund money in accordance with Subsection (4)(a) for a limited-access
2037 facility or interchange connecting limited-access facilities;
2038 (ii) may not program fund money for the construction, reconstruction, or renovation of
2039 an interchange on a limited-access facility;
2040 (iii) may program Transit Transportation Investment Fund money for a
2041 multi-community fixed guideway public transportation project; and
2042 (iv) may not program Transit Transportation Investment Fund money for the
2043 construction, reconstruction, or renovation of a station that is part of a fixed guideway public
2044 transportation project.
2045 (c) Subsections (5)(a) and (b) do not apply to a project programmed by the executive
2046 director before July 1, 2022, for projects prioritized by the commission under Section
2047 72-1-304.
2048 (6) (a) Except as provided in Subsection (6)(b), if the department receives a notice of
2049 ineligibility for a county as described in Subsection 17-27a-408(7), the executive director may
2050 not program fund money to a project prioritized by the commission under Section 72-1-304,
2051 including fund money from the Transit Transportation Investment Fund, within the boundaries
2052 of the unincorporated area of the county [
2053 department receives notification from the Housing and Community Development Division
2054 within the Department of Workforce Services that ineligibility under this Subsection (6) no
2055 longer applies to the county.
2056 (b) Within the boundaries of the unincorporated area of a county described in
2057 Subsection (6)(a), the executive director:
2058 (i) may program fund money in accordance with Subsection (4)(a) for a limited-access
2059 facility to a project prioritized by the commission under Section 72-1-304;
2060 (ii) may not program fund money for the construction, reconstruction, or renovation of
2061 an interchange on a limited-access facility;
2062 (iii) may program Transit Transportation Investment Fund money for a
2063 multi-community fixed guideway public transportation project; and
2064 (iv) may not program Transit Transportation Investment Fund money for the
2065 construction, reconstruction, or renovation of a station that is part of a fixed guideway public
2066 transportation project.
2067 (c) Subsections (6)(a) and (b) do not apply to a project programmed by the executive
2068 director before July 1, 2022, for projects prioritized by the commission under Section
2069 72-1-304.
2070 (7) (a) Before bonds authorized by Section 63B-18-401 or 63B-27-101 may be issued
2071 in any fiscal year, the department and the commission shall appear before the Executive
2072 Appropriations Committee of the Legislature and present the amount of bond proceeds that the
2073 department needs to provide funding for the projects identified in Subsections 63B-18-401(2),
2074 (3), and (4) or Subsection 63B-27-101(2) for the current or next fiscal year.
2075 (b) The Executive Appropriations Committee of the Legislature shall review and
2076 comment on the amount of bond proceeds needed to fund the projects.
2077 (8) The Division of Finance shall, from money deposited into the fund, transfer the
2078 amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
2079 Section 63B-18-401 or 63B-27-101 in the current fiscal year to the appropriate debt service or
2080 sinking fund.
2081 (9) (a) There is created in the Transportation Investment Fund of 2005 the Transit
2082 Transportation Investment Fund.
2083 (b) The fund shall be funded by:
2084 (i) contributions deposited into the fund in accordance with Section 59-12-103;
2085 (ii) appropriations into the account by the Legislature;
2086 (iii) deposits of sales and use tax increment related to a housing and transit
2087 reinvestment zone as described in Section 63N-3-610;
2088 (iv) private contributions; and
2089 (v) donations or grants from public or private entities.
2090 (c) (i) The fund shall earn interest.
2091 (ii) All interest earned on fund money shall be deposited into the fund.
2092 (d) Subject to Subsection (9)(e), the Legislature may appropriate money from the fund:
2093 (i) for public transit capital development of new capacity projects and fixed guideway
2094 capital development projects to be used as prioritized by the commission through the
2095 prioritization process adopted under Section 72-1-304;
2096 (ii) for development of the oversight plan described in Section 72-1-202(5); or
2097 (iii) to the department for oversight of a fixed guideway capital development project
2098 for which the department has responsibility.
2099 (e) (i) The Legislature may only appropriate money from the fund for a public transit
2100 capital development project or pedestrian or nonmotorized transportation project that provides
2101 connection to the public transit system if the public transit district or political subdivision
2102 provides funds of equal to or greater than 40% of the costs needed for the project.
2103 (ii) A public transit district or political subdivision may use money derived from a loan
2104 granted pursuant to Title 72, Chapter 2, Part 2, State Infrastructure Bank Fund, to provide all or
2105 part of the 40% requirement described in Subsection (9)(e)(i) if:
2106 (A) the loan is approved by the commission as required in Title 72, Chapter 2, Part 2,
2107 State Infrastructure Bank Fund; and
2108 (B) the proposed capital project has been prioritized by the commission pursuant to
2109 Section 72-1-303.
2110 (f) Before July 1, 2022, the department and a large public transit district shall enter into
2111 an agreement for a large public transit district to pay the department $5,000,000 per year for 15
2112 years to be used to facilitate the purchase of zero emissions or low emissions rail engines and
2113 trainsets for regional public transit rail systems.
2114 (10) (a) There is created in the Transportation Investment Fund of 2005 the
2115 Cottonwood Canyons Transportation Investment Fund.
2116 (b) The fund shall be funded by:
2117 (i) money deposited into the fund in accordance with Section 59-12-103;
2118 (ii) appropriations into the account by the Legislature;
2119 (iii) private contributions; and
2120 (iv) donations or grants from public or private entities.
2121 (c) (i) The fund shall earn interest.
2122 (ii) All interest earned on fund money shall be deposited into the fund.
2123 (d) The Legislature may appropriate money from the fund for public transit or
2124 transportation projects in the Cottonwood Canyons of Salt Lake County.
2125 Section 15. Appropriation.
2126 The following sums of money are appropriated for the fiscal year beginning July 1,
2127 2023, and ending June 30, 2024. These are additions to amounts previously appropriated for
2128 fiscal year 2024. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
2129 Act, the Legislature appropriates the following sums of money from the funds or accounts
2130 indicated for the use and support of the government of the state of Utah.
2131 ITEM 1
2132 To Department of Health and Human Services -- Integrated Health Care Services
2133 From Medicaid Expansion Fund
3,900,000
2134 Schedule of Programs:
2135 Expansion Other Services 3,900,000
2136 The Legislature intends that the Department of Health and Human Services use the
2137 appropriation under this item to provide housing support services to Medicaid adult expansion
2138 members.
2139 Section 16. Effective date.
2140 (1) Except as provided in Subsection (2), this bill takes effect on May 3, 2023.
2141 (2) If approved by two-thirds of all the members elected to each house, the actions
2142 affecting the following sections take effect upon approval by the governor, or the day following
2143 the constitutional time limit of Utah Constitution, Article VII, Section 8, without the governor's
2144 signature, or in the case of a veto, the date of veto override:
2145 (a) Section 10-9a-401;
2146 (b) Section 10-9a-403;
2147 (c) Section 10-9a-408;
2148 (d) Section 17-27a-401;
2149 (e) Section 17-27a-403; and
2150 (f) Section 17-27a-408.
2151 Section 17. Retrospective operation.
2152 The changes to Sections 59-7-607, 59-9-108, and 59-10-1010 in this bill have
2153 retrospective operation for a taxable year beginning on or after January 1, 2023.