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HOUSING AND TRANSIT REINVESTMENT ZONE

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MODIFICATIONS

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2023 GENERAL SESSION

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STATE OF UTAH

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Chief Sponsor: Casey Snider

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Senate Sponsor: ____________

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8     LONG TITLE
9     General Description:
10          This bill provides a property owner near a public transit hub in a county with a small
11     public transit district with certain vested development rights if the county failed to
12     submit an application for a housing and transit reinvestment zone before a certain
13     deadline.
14     Highlighted Provisions:
15          This bill:
16          ▸     provides a property owner near a public transit hub in a county with a small public
17     transit district with certain vested development rights if the county failed to submit
18     an application for a housing and transit reinvestment zone before a certain deadline.
19     Money Appropriated in this Bill:
20          None
21     Other Special Clauses:
22          None
23     Utah Code Sections Affected:
24     AMENDS:
25          63N-3-603, as last amended by Laws of Utah 2022, Chapters 21, 406 and 433
26     

27     Be it enacted by the Legislature of the state of Utah:

28          Section 1. Section 63N-3-603 is amended to read:
29          63N-3-603. Applicability, requirements, and limitations on a housing and transit
30     reinvestment zone.
31          (1) A housing and transit reinvestment zone proposal created under this part shall
32     promote the following objectives:
33          (a) higher utilization of public transit;
34          (b) increasing availability of housing, including affordable housing;
35          (c) conservation of water resources through efficient land use;
36          (d) improving air quality by reducing fuel consumption and motor vehicle trips;
37          (e) encouraging transformative mixed-use development and investment in
38     transportation and public transit infrastructure in strategic areas;
39          (f) strategic land use and municipal planning in major transit investment corridors as
40     described in Subsection 10-9a-403(2);
41          (g) increasing access to employment and educational opportunities; and
42          (h) increasing access to child care.
43          (2) In order to accomplish the objectives described in Subsection (1), a municipality or
44     public transit county that initiates the process to create a housing and transit reinvestment zone
45     as described in this part shall ensure that the proposal for a housing and transit reinvestment
46     zone includes:
47          (a) except as provided in Subsection (3), at least 10% of the proposed dwelling units
48     within the housing and transit reinvestment zone are affordable housing units;
49          (b) at least 51% of the developable area within the housing and transit reinvestment
50     zone includes residential uses with, except as provided in Subsection (4)(c), an average of 50
51     dwelling units per acre or greater;
52          (c) mixed-use development; and
53          (d) a mix of dwelling units to ensure that a reasonable percentage of the dwelling units
54     has more than one bedroom.
55          (3) A municipality or public transit county that, at the time the housing and transit
56     reinvestment zone proposal is approved by the housing and transit reinvestment zone
57     committee, meets the affordable housing guidelines of the United States Department of
58     Housing and Urban Development at 60% area median income is exempt from the requirement

59     described in Subsection (2)(a).
60          (4) (a) A municipality may only propose a housing and transit reinvestment zone at a
61     commuter rail station, and a public transit county may only propose a housing and transit
62     reinvestment zone at a public transit hub, that:
63          (i) subject to Subsection (5)(a):
64          (A) (I) except as provided in Subsection (4)(a)(i)(A)(II), for a municipality, does not
65     exceed a 1/3 mile radius of a commuter rail station;
66          (II) for a municipality that is a city of the first class with a population greater than
67     150,000 that is within a county of the first class, with an opportunity zone created pursuant to
68     Section 1400Z-1, Internal Revenue Code, does not exceed a 1/2 mile radius of a commuter rail
69     station located within the opportunity zone; or
70          (III) for a public transit county, does not exceed a 1/3 mile radius of a public transit
71     hub; and
72          (B) has a total area of no more than 125 noncontiguous acres;
73          (ii) subject to Section 63N-3-607, proposes the capture of a maximum of 80% of each
74     taxing entity's tax increment above the base year for a term of no more than 25 consecutive
75     years on each parcel within a 45-year period not to exceed the tax increment amount approved
76     in the housing and transit reinvestment zone proposal; and
77          (iii) the commencement of collection of tax increment, for all or a portion of the
78     housing and transit reinvestment zone, will be triggered by providing notice as described in
79     Subsection (6).
80          (b) A municipality or public transit county may only propose a housing and transit
81     reinvestment zone at a light rail station or bus rapid transit station that:
82          (i) subject to Subsection (5):
83          (A) does not exceed:
84          (I) except as provided in Subsection (4)(b)(i)(A)(II) or (III), a 1/4 mile radius of a bus
85     rapid transit station or light rail station;
86          (II) for a municipality that is a city of the first class with a population greater than
87     150,000 that is within a county of the first class, a 1/2 mile radius of a light rail station located
88     in an opportunity zone created pursuant to Section 1400Z-1, Internal Revenue Code; or
89          (III) a 1/2 mile radius of a light rail station located within a master-planned

90     development of 500 acres or more; and
91          (B) has a total area of no more than 100 noncontiguous acres;
92          (ii) subject to Subsection (4)(c) and Section 63N-3-607, proposes the capture of a
93     maximum of 80% of each taxing entity's tax increment above the base year for a term of no
94     more than 15 consecutive years on each parcel within a 30-year period not to exceed the tax
95     increment amount approved in the housing and transit reinvestment zone proposal; and
96          (iii) the commencement of collection of tax increment, for all or a portion of the
97     housing and transit reinvestment zone, will be triggered by providing notice as described in
98     Subsection (6).
99          (c) For a housing and transit reinvestment zone proposed by a public transit county at a
100     public transit hub, or for a housing and transit reinvestment zone proposed by a municipality at
101     a bus rapid transit station, if the proposed housing density within the housing and transit
102     reinvestment zone is between 39 and 49 dwelling units per acre, the maximum capture of each
103     taxing entity's tax increment above the base year is 60%.
104          (d) A municipality that is a city of the first class with a population greater than 150,000
105     in a county of the first class as described in Subsections (4)(a)(i)(A)(II) and (4)(b)(i)(A)(II) may
106     only propose one housing and transit reinvestment zone within an opportunity zone.
107          (5) (a) For a housing and transit reinvestment zone for a commuter rail station, if a
108     parcel is bisected by the relevant radius limitation, the full parcel may be included as part of the
109     housing and transit reinvestment zone area and will not count against the limitations described
110     in Subsection (4)(a)(i).
111          (b) For a housing and transit reinvestment zone for a light rail or bus rapid transit
112     station, if a parcel is bisected by the relevant radius limitation, the full parcel may be included
113     as part of the housing and transit reinvestment zone area and will not count against the
114     limitations described in Subsection (4)(b)(i).
115          (6) The notice of commencement of collection of tax increment required in Subsection
116     (4)(a)(iii) or (4)(b)(iii) shall be sent by mail or electronically to:
117          (a) the tax commission;
118          (b) the State Board of Education;
119          (c) the state auditor;
120          (d) the auditor of the county in which the housing and transit reinvestment zone is

121     located;
122          (e) each taxing entity affected by the collection of tax increment from the housing and
123     transit reinvestment zone; and
124          (f) the Governor's Office of Economic Opportunity.
125          (7) (a) The maximum number of housing and transit reinvestment zones at light rail
126     stations is eight in any given county.
127          (b) The maximum number of housing and transit reinvestment zones at bus rapid
128     transit stations is three in any given county.
129          (8) (a) This Subsection (8) applies to a specified county, as defined in Section
130     17-27a-408, that has created a small public transit district on or before January 1, 2022.
131          (b) A county described in Subsection (8)(a) shall, in accordance with Section
132     63N-3-604, prepare and submit to the Governor's Office of Economic Opportunity a proposal
133     to create a housing and transit reinvestment zone on or before December 31, 2022.
134          (c) To accomplish the objectives described in Subsection (1), if a county described in
135     Subsection (8)(a) has failed to comply with Subsection (8)(b) by failing to submit an
136     application before December 31, 2022, an owner of undeveloped property that is zoned
137     community commercial as of December 31, 2022, and is within a 1/3 mile radius of a public
138     transit hub in a county described in Subsection (8)(a), shall have the vested right to develop and
139     build a mixed-use development including the following:
140          (i) between 39 and 50 dwelling units per acre on average over the subject parcels, with
141     at least 10% of the dwelling units deed restricted as affordable housing units;
142          (ii) commercial uses including office, retail, educational, and healthcare in support of
143     the mixed-use environment constituting up to 1/3 of the total planned gross building square
144     footage of the subject parcels; and
145          (iii) any other infrastructure element necessary or reasonable to support the mixed-use
146     environment including parking infrastructure, streets, sidewalks, parks, and trails.