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