This document includes House Committee Amendments incorporated into the bill on Thu, Feb 22, 2024 at 7:45 PM by housengrossing.
This document includes House Floor Amendments incorporated into the bill on Thu, Feb 29, 2024 at 4:13 PM by housengrossing.
Senator Wayne A. Harper proposes the following substitute bill:


1     
HOUSING AND TRANSIT REINVESTMENT ZONE AMENDMENTS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Wayne A. Harper

5     
House Sponsor: Stephen L. Whyte

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to housing and transit reinvestment zones.
10     Highlighted Provisions:
11          This bill:
12          ▸     amends definitions related to housing and transit reinvestment zones;
13          ▸     amends provisions related to affordable housing thresholds to require 12% of the
14     proposed dwelling units be reserved for certain levels of income;
15          ▸     requires affordable housing requirements be met in each phase of development;
16          ▸     requires that a housing and transit reinvestment zone be at least 10 acres;
17          ▸     clarifies notice requirements to certain entities regarding the commencement of
18     collection of tax increment;
19          ▸     clarifies information required in a housing and transit reinvestment zone proposal;
20          ▸     adds two additional members of the Legislature to the housing and transit
21     reinvestment zone committee;
22          ▸     amends provisions regarding overlap of a housing and transit reinvestment zone
23     with a community reinvestment project area;
24          ▸     amends provisions related to the sales and use tax increment captured within a
25     housing and transit reinvestment zone, including:
26               •     how base year is established;
27               •     contiguity of affected sales and use tax boundaries; and
28               •     limiting a housing and transit reinvestment zone to only one sales and use tax
29     increment period;
30          ▸     amends the amount of housing and transit reinvestment zone funds allowed for
31     administration of the housing and transit reinvestment zone;
32          ▸     allows minor adjustments to a housing and transit reinvestment zone if the county
33     assessor or county auditor adjusts parcel boundaries; and
34          ▸     makes technical changes.
35     Money Appropriated in this Bill:
36          None
37     Other Special Clauses:
38          None
39     Utah Code Sections Affected:
40     AMENDS:
41          63N-3-602, as last amended by Laws of Utah 2023, Chapter 357
42          63N-3-603, as last amended by Laws of Utah 2023, Chapter 357
43          63N-3-604, as last amended by Laws of Utah 2023, Chapter 357
44          63N-3-605, as last amended by Laws of Utah 2023, Chapter 357
45          63N-3-607, as last amended by Laws of Utah 2022, Chapter 433
46          63N-3-610, as last amended by Laws of Utah 2022, Chapter 433
47     ENACTS:
48          63N-3-611, Utah Code Annotated 1953
49     

50     Be it enacted by the Legislature of the state of Utah:
51          Section 1. Section 63N-3-602 is amended to read:
52          63N-3-602. Definitions.
53          As used in this part:
54          (1) "Affordable housing" means housing occupied or reserved for occupancy by
55     households with a gross household income:
56          (a) equal to or less than 80% of the median gross income of the applicable municipal or
57     county statistical area for households of the same size[.], in certain circumstances as provided
58     in this part; or
59          (b) equal to or less than 60% of the median gross income of the applicable municipal
60     or county statistical area for households of the same size, in certain circumstances as provided
61     in this part.
62          (2) "Agency" means the same as that term is defined in Section 17C-1-102.
63          (3) "Base taxable value" means a property's taxable value as shown upon the
64     assessment roll last equalized during the base year.
65          [(4) "Base year" means, for a proposed housing and transit reinvestment zone area, a
66     year beginning the first day of the calendar quarter determined by the last equalized tax roll
67     before the adoption of the housing and transit reinvestment zone.]
68          (4) "Base year" means, for each tax increment collection period triggered within a
69     proposed housing and transit reinvestment zone area, the calendar year prior to the calendar
70     year the tax increment begins to be collected for those parcels triggered for that collection
71     period.
72          (5) "Bus rapid transit" means a high-quality bus-based transit system that delivers fast
73     and efficient service that may include dedicated lanes, busways, traffic signal priority,
74     off-board fare collection, elevated platforms, and enhanced stations.
75          (6) "Bus rapid transit station" means an existing station, stop, or terminal, or a
76     proposed station, stop, or terminal that is specifically identified [in] as needed in phase one of a
77     metropolitan planning organization's adopted long-range transportation plan and in phase one
78     of the relevant public transit district's [five-year] adopted long-range transit plan:
79          (a) along an existing bus rapid transit line; or
80          (b) along an extension to an existing bus rapid transit line or new bus rapid transit line.
81          (7) (a) "Commuter rail" means a heavy-rail passenger rail transit facility operated by a
82     large public transit district.
83          (b) "Commuter rail" does not include a light-rail passenger rail facility of a large public
84     transit district.
85          (8) "Commuter rail station" means an existing station, stop, or terminal, or a proposed
86     station, stop, or terminal, which has been specifically identified [in] as needed in phase one of a
87     metropolitan planning organization's adopted long-range transportation plan and in phase one
88     of the relevant public transit district's [five-year] adopted long-range transit plan:
89          (a) along an existing commuter rail line;
90          (b) along an extension to an existing commuter rail line or new commuter rail line; or
91          (c) along a fixed guideway extension from an existing commuter rail line.
92          (9) (a) "Developable area" means the portion of land within a housing and transit
93     reinvestment zone available for development and construction of business and residential uses.
94          (b) "Developable area" does not include portions of land within a housing and transit
95     reinvestment zone that are allocated to:
96          (i) parks;
97          (ii) recreation facilities;
98          (iii) open space;
99          (iv) trails;
100          (v) publicly-owned roadway facilities; or
101          (vi) other public facilities.
102          (10) "Dwelling unit" means one or more rooms arranged for the use of one or more
103     individuals living together, as a single housekeeping unit normally having cooking, living,
104     sanitary, and sleeping facilities.
105          (11) "Enhanced development" means the construction of mixed uses including
106     housing, commercial uses, and related facilities.
107          (12) "Enhanced development costs" means extra costs associated with structured
108     parking costs, vertical construction costs, horizontal construction costs, life safety costs,
109     structural costs, conveyor or elevator costs, and other costs incurred due to the increased height
110     of buildings or enhanced development.
111          (13) "Fixed guideway" means the same as that term is defined in Section 59-12-102.
112          (14) "Horizontal construction costs" means the additional costs associated with
113     earthwork, over excavation, utility work, transportation infrastructure, and landscaping to
114     achieve enhanced development in the housing and transit reinvestment zone.
115          (15) "Housing and transit reinvestment zone" means a housing and transit reinvestment
116     zone created pursuant to this part.
117          (16) "Housing and transit reinvestment zone committee" means a housing and transit
118     reinvestment zone committee created pursuant to Section 63N-3-605.
119          (17) "Large public transit district" means the same as that term is defined in Section
120     17B-2a-802.
121          (18) "Light rail" means a passenger rail public transit system with right-of-way and
122     fixed rails:
123          (a) dedicated to exclusive use by light-rail public transit vehicles;
124          (b) that may cross streets at grade; and
125          (c) that may share parts of surface streets.
126          (19) "Light rail station" means an existing station, stop, or terminal or a proposed
127     station, stop, or terminal, which has been specifically identified [in] as needed in phase one of a
128     metropolitan planning organization's adopted long-range transportation plan and in phase one
129     of the relevant public transit district's [five-year] adopted long-range plan:
130          (a) along an existing light rail line; or
131          (b) along an extension to an existing light rail line or new light rail line.
132          (20) "Metropolitan planning organization" means the same as that term is defined in
133     Section 72-1-208.5.
134          (21) "Mixed use development" means development with a mix of:
135          (a) multi-family residential use; and
136          (b) at least one additional land use, which shall be a significant part of the overall
137     development.
138          (22) "Municipality" means the same as that term is defined in Section 10-1-104.
139          (23) "Participant" means the same as that term is defined in Section 17C-1-102.
140          (24) "Participation agreement" means the same as that term is defined in Section
141     17C-1-102, except that the agency may not provide and the person may not receive a direct
142     subsidy.
143          (25) "Public transit county" means a county that has created a small public transit
144     district.
145          (26) "Public transit hub" means a public transit depot or station where four or more
146     routes serving separate parts of the county-created transit district stop to transfer riders between
147     routes.
148          (27) "Sales and use tax base year" means a sales and use tax year determined by the
149     first year pertaining to the tax imposed in Section 59-12-103 after the sales and use tax
150     boundary for a housing and transit reinvestment zone is established.
151          (28) "Sales and use tax boundary" means a boundary created as described in Section
152     63N-3-604, based on state sales and use tax collection that corresponds as closely as reasonably
153     practicable to the housing and transit reinvestment zone boundary.
154          (29) "Sales and use tax increment" means the difference between:
155          (a) the amount of state sales and use tax revenue generated each year following the
156     sales and use tax base year by the sales and use tax from the area within a housing and transit
157     reinvestment zone designated in the housing and transit reinvestment zone proposal as the area
158     from which sales and use tax increment is to be collected; and
159          (b) the amount of state sales and use tax revenue that was generated from that same
160     area during the sales and use tax base year.
161          (30) "Sales and use tax revenue" means revenue that is generated from the tax imposed
162     under Section 59-12-103.
163          (31) "Small public transit district" means the same as that term is defined in Section
164     17B-2a-802.
165          (32) "Tax Commission" means the State Tax Commission created in Section 59-1-201.
166          (33) (a) "Tax increment" means the difference between:
167          [(a)] (i) the amount of property tax revenue generated each tax year by a taxing entity
168     from the area within a housing and transit reinvestment zone designated in the housing and
169     transit reinvestment zone proposal as the area from which tax increment is to be collected,
170     using the current assessed value and each taxing entity's current certified tax rate as defined in
171     Section 59-2-924; and
172          [(b)] (ii) the amount of property tax revenue that would be generated from that same
173     area using the base taxable value and each taxing entity's current certified tax rate as defined in
174     Section 59-2-924.
175          (b) "Tax increment" does not include property tax revenue from:
176          (i) a multicounty assessing and collecting levy described in Subsection 59-2-1602(2);
177     or
178          (ii) a county additional property tax described in Subsection 59-2-1602(4).
179          (34) "Taxing entity" means the same as that term is defined in Section 17C-1-102.
180          (35) "Vertical construction costs" means the additional costs associated with
181     construction above four stories and structured parking to achieve enhanced development in the
182     housing and transit reinvestment zone.
183          Section 2. Section 63N-3-603 is amended to read:
184          63N-3-603. Applicability, requirements, and limitations on a housing and transit
185     reinvestment zone.
186          (1) A housing and transit reinvestment zone proposal created under this part shall
187     promote the following objectives:
188          (a) higher utilization of public transit;
189          (b) increasing availability of housing, including affordable housing, and fulfillment of
190     moderate income housing plans;
191          (c) promoting and encouraging development of owner-occupied housing;
192          [(c)] (d) improving efficiencies in parking and transportation, including walkability of
193     communities near public transit facilities;
194          [(d)] (e) overcoming development impediments and market conditions that render a
195     development cost prohibitive absent the proposal and incentives;
196          [(e)] (f) [conservation of] conserving water resources through efficient land use;
197          [(f)] (g) improving air quality by reducing fuel consumption and motor vehicle trips;
198          [(g)] (h) encouraging transformative mixed-use development and investment in
199     transportation and public transit infrastructure in strategic areas;
200          [(h)] (i) strategic land use and municipal planning in major transit investment corridors
201     as described in Subsection 10-9a-403(2);
202          [(i)] (j) increasing access to employment and educational opportunities; and
203          [(j)] (k) increasing access to child care.
204          (2) (a) In order to accomplish the objectives described in Subsection (1), a municipality
205     or public transit county that initiates the process to create a housing and transit reinvestment
206     zone as described in this part shall ensure that the proposal for a housing and transit
207     reinvestment zone includes:
208          [(a)] (i) except as provided in Subsection (3), at least [10%] 12% of the proposed
209     dwelling units within the housing and transit reinvestment zone are affordable housing units[;],
210     with:
211          (A) up to 9% of the proposed dwelling units occupied or reserved for occupancy by
212     households with a gross household income equal to or less than 80% of the median gross
213     income of the applicable municipal or county statistical area for households of the same size;
214     and
215          (B) at least 3% of the proposed dwelling units occupied or reserved for occupancy by
216     households with a gross household income equal to or less than 60% of the median gross
217     income of the applicable municipal or county statistical area for households of the same size Ĥ→ [.]
217a     ; ←Ĥ
218          [(b) at least 51% of the developable area within the housing and transit reinvestment
219     zone includes residential uses with, except as provided in Subsection (4)(c), an average of 50
220     dwelling units per acre or greater;]
221          (ii) except as provided in Subsection (2)(c), a housing and transit reinvestment zone
222     shall include:
223          (A) at least 51% of the developable area within a housing and transit reinvestment zone
224     as residential uses; and
225          (B) an average of at least 50 dwelling units per acre within the acreage of the housing
226     and transit reinvestment zone dedicated to residential uses;
227          [(c)] (iii) mixed-use development; and
228          [(d)] (iv) a mix of dwelling units to ensure that a reasonable percentage of the dwelling
229     units has more than one bedroom.
230          (b) (i) If a housing and transit reinvestment zone is phased, a municipality or public
231     transit county shall ensure that a housing and transit reinvestment zone is phased and
232     developed to provide the required 12% of affordable housing units in each phase of
233     development.
234          (ii) A municipality or public transit county may allow a housing and transit
235     reinvestment zone to be phased and developed in a manner to provide more of the required
236     affordable housing units in early phases of development.
237          (iii) A municipality or public transit county shall include in a housing and transit
238     reinvestment zone proposal an affordable housing plan, which may include deed restrictions, to
239     ensure the affordable housing required in the proposal will continue to meet the definition of
240     affordable housing at least throughout the entire term of the housing and transit reinvestment
241     zone.
242          (c) For a housing and transit reinvestment zone proposed by a public transit county at a
243     public transit hub, or for a housing and transit reinvestment zone proposed by a municipality at
244     a bus rapid transit station, the housing and transit reinvestment zone shall include:
245          (i) at least 51% of the developable area within a housing and transit reinvestment zone
246     as residential uses; and
247          (ii) an average of at least 39 dwelling units per acre within the acreage of the housing
248     and transit reinvestment zone dedicated to residential uses.
249          (3) A municipality or public transit county that, at the time the housing and transit
250     reinvestment zone proposal is approved by the housing and transit reinvestment zone
251     committee, meets the affordable housing guidelines of the United States Department of
252     Housing and Urban Development at 60% area median income is exempt from the requirement
253     described in Subsection (2)(a).
254          (4) (a) A municipality may only propose a housing and transit reinvestment zone at a
255     commuter rail station, and a public transit county may only propose a housing and transit
256     reinvestment zone at a public transit hub, that:
257          (i) subject to Subsection (5)(a):
258          (A) (I) except as provided in Subsection (4)(a)(i)(A)(II), for a municipality, does not
259     exceed a 1/3 mile radius of a commuter rail station;
260          (II) for a municipality that is a city of the first class with a population greater than
261     150,000 that is within a county of the first class, with an opportunity zone created pursuant to
262     Section 1400Z-1, Internal Revenue Code, does not exceed a 1/2 mile radius of a commuter rail
263     station located within the opportunity zone; or
264          (III) for a public transit county, does not exceed a 1/3 mile radius of a public transit
265     hub; and
266          (B) has a total area of no more than 125 noncontiguous acres;
267          (ii) subject to Section 63N-3-607, proposes the capture of a maximum of 80% of each
268     taxing entity's tax increment above the base year for a term of no more than 25 consecutive
269     years on each parcel within a 45-year period not to exceed the tax increment amount approved
270     in the housing and transit reinvestment zone proposal; and
271          (iii) the commencement of collection of tax increment, for all or a portion of the
272     housing and transit reinvestment zone, will be triggered by providing notice as described in
273     Subsection (6), but a housing and transit reinvestment zone proposal may not propose or
274     include triggering more than three tax increment collection periods during the applicable
275     45-year period.
276          (b) A municipality or public transit county may only propose a housing and transit
277     reinvestment zone at a light rail station or bus rapid transit station that:
278          (i) subject to Subsection (5):
279          (A) does not exceed:
280          (I) except as provided in Subsection [(4)(b)(i)(A)(II) or (III),] (4)(b)(i)(A)(II), (III), or
281     (4)(e), a 1/4 mile radius of a bus rapid transit station or light rail station;
282          (II) for a municipality that is a city of the first class with a population greater than
283     150,000 that is within a county of the first class, a 1/2 mile radius of a light rail station located
284     in an opportunity zone created pursuant to Section
285     1400Z-1, Internal Revenue Code; or
286          (III) a 1/2 mile radius of a light rail station located within a master-planned
287     development of 500 acres or more; and
288          (B) has a total area of no more than 100 noncontiguous acres;
289          (ii) subject to Subsection (4)(c) and Section 63N-3-607, proposes the capture of a
290     maximum of 80% of each taxing entity's tax increment above the base year for a term of no
291     more than 15 consecutive years on each parcel within a 30-year period not to exceed the tax
292     increment amount approved in the housing and transit reinvestment zone proposal; and
293          (iii) the commencement of collection of tax increment, for all or a portion of the
294     housing and transit reinvestment zone, will be triggered by providing notice as described in
295     Subsection (6), but a housing and transit reinvestment zone proposal may not propose or
296     include triggering more than three tax increment collection periods during the applicable
297     30-year period.
298          (c) For a housing and transit reinvestment zone proposed by a public transit county at a
299     public transit hub, or for a housing and transit reinvestment zone proposed by a municipality at
300     a bus rapid transit station, if the proposed housing density within the housing and transit
301     reinvestment zone is between 39 and 49 dwelling units per acre, the maximum capture of each
302     taxing entity's tax increment above the base year is 60%.
303          (d) A municipality that is a city of the first class with a population greater than 150,000
304     in a county of the first class as described in Subsections (4)(a)(i)(A)(II) and (4)(b)(i)(A)(II) may
305     only propose one housing and transit reinvestment zone within an opportunity zone.
306          (e) (i) Subject to Subsection (4)(e)(ii), the radius restrictions described in Subsection
307     (4)(b)(i) do not apply, and a housing and transit reinvestment zone may extend to an area
308     between two light rail stations Ĥ→ located within a city of the third class ←Ĥ if the two light rail
308a     stations are within a Ĥ→ [2/3] .95 ←Ĥ mile distance on the
309     same light rail line.
310          (ii) If a housing and transit reinvestment zone is extended to accommodate two light
311     rail stations as described in Subsection (4)(e)(i):
312          (A) the housing and transit reinvestment zone is limited to a total area not to exceed
313     100 noncontiguous acres; and
314          (B) the housing and transit reinvestment zone may not exceed a 1/4 mile radius from
315     the light rail stations or any point on the light rail line between the two stations.
316          (f) If a parcel within the housing transit and reinvestment zone is included as an area
317     that is part of a project area, as that term is defined in Section 17C-1-102, and created under
318     Title 17C, Chapter 1, Agency Operations, that parcel may not be triggered for collection unless
319     the Ĥ→ [project area is dissolved pursuant to Section 17C-1-702.] project area funds collection
319a     period, as that term is defined in Section 17C-1-102, has expired. ←Ĥ
320          [(e) A county of the first class may not propose a housing and transit reinvestment zone
321     that includes an area that is part of a project area, as that term is defined in Section 17C-1-102,
322     and created under Title 17C, Chapter 1, Agency Operations, until the project area is dissolved
323     pursuant to Section 17C-1-702.]
324          (5) (a) For a housing and transit reinvestment zone for a commuter rail station, if a
325     parcel is bisected by the relevant radius limitation, the full parcel may be included as part of the
326     housing and transit reinvestment zone area and will not count against the limitations described
327     in Subsection (4)(a)(i).
328          (b) For a housing and transit reinvestment zone for a light rail or bus rapid transit
329     station, if a parcel is bisected by the relevant radius limitation, the full parcel may be included
330     as part of the housing and transit reinvestment zone area and will not count against the
331     limitations described in Subsection (4)(b)(i).
332          (c) A housing and transit reinvestment zone may not be smaller than 10 acres.
333          (6) The notice of commencement of collection of tax increment required in Subsection
334     (4)(a)(iii) or (4)(b)(iii) shall be sent by mail or electronically to the following entities no later
335     than January 1 of the year for which the tax increment collection is proposed to commence:
336          (a) the tax commission;
337          (b) the State Board of Education;
338          (c) the state auditor;
339          (d) the auditor of the county in which the housing and transit reinvestment zone is
340     located;
341          (e) each taxing entity affected by the collection of tax increment from the housing and
342     transit reinvestment zone; and
343          (f) the Governor's Office of Economic Opportunity.
344          (7) (a) The maximum number of housing and transit reinvestment zones at light rail
345     stations is eight in any given county.
346          (b) Within a county of the first class, the maximum number of housing and transit
347     reinvestment zones at bus rapid transit stations is three.
348          (8) (a) This Subsection (8) applies to a specified county, as defined in Section
349     17-27a-408, that has created a small public transit district on or before January 1, 2022.
350          (b) (i) A county described in Subsection (8)(a) shall, in accordance with Section
351     63N-3-604, prepare and submit to the Governor's Office of Economic Opportunity a proposal
352     to create a housing and transit reinvestment zone on or before December 31, 2022.
353          (ii) A county described in Subsection (8)(a) that, on December 31, 2022, was
354     noncompliant under Section 17-27a-408 for failure to demonstrate in the county's moderate
355     income housing report that the county complied with Subsection (8)(b)(i), may cure the
356     deficiency in the county's moderate income housing report by submitting satisfactory proof to
357     the Housing and Community Development Division that, notwithstanding the deadline in
358     Subsection (8)(b)(i), the county has submitted to the Governor's Office of Economic
359     Opportunity a proposal to create a housing and transit reinvestment zone.
360          (c) (i) A county described in Subsection (8)(a) may not propose a housing and transit
361     reinvestment zone if more than 15% of the acreage within the housing and transit reinvestment
362     zone boundary is owned by the county.
363          (ii) For purposes of determining the percentage of acreage owned by the county as
364     described in Subsection (8)(c)(i), a county may exclude any acreage owned that is used for
365     highways, bus rapid transit, light rail, or commuter rail within the boundary of the housing and
366     transit reinvestment zone.
367          (d) To accomplish the objectives described in Subsection (1), if a county described in
368     Subsection (8)(a) has failed to comply with Subsection (8)(b)(i) by failing to submit an
369     application before December 31, 2022, an owner of undeveloped property who has submitted a
370     land use application to the county on or before December 31, 2022, and is within a 1/3 mile
371     radius of a public transit hub in a county described in Subsection (8)(a), including parcels that
372     are bisected by the 1/3 mile radius, shall have the right to develop and build a mixed-use
373     development including the following:
374          (i) excluding the parcels devoted to commercial uses as described in Subsection
375     (8)(d)(ii), at least 39 dwelling units per acre on average over the developable area, with at least
376     10% of the dwelling units as affordable housing units;
377          (ii) commercial uses including office, retail, educational, and healthcare in support of
378     the mixed-use development constituting up to 1/3 of the total planned gross building square
379     footage of the subject parcels; and
380          (iii) any other infrastructure element necessary or reasonable to support the mixed-use
381     development, including parking infrastructure, streets, sidewalks, parks, and trails.
382          Section 3. Section 63N-3-604 is amended to read:
383          63N-3-604. Process for a proposal of a housing and transit reinvestment zone --
384     Analysis.
385          (1) Subject to approval of the housing and transit reinvestment zone committee as
386     described in Section 63N-3-605, in order to create a housing and transit reinvestment zone, a
387     municipality or public transit county that has general land use authority over the housing and
388     transit reinvestment zone area, shall:
389          (a) prepare a proposal for the housing and transit reinvestment zone that:
390          (i) demonstrates that the proposed housing and transit reinvestment zone will meet the
391     objectives described in Subsection 63N-3-603(1);
392          (ii) explains how the municipality or public transit county will achieve the
393     requirements of Subsection 63N-3-603(2)(a)(i);
394          (iii) defines the specific transportation infrastructure needs, if any, and proposed
395     improvements;
396          (iv) defines the boundaries of:
397          (A) the housing and transit reinvestment zone; and
398          (B) the sales and use tax boundary corresponding to the housing and transit
399     reinvestment zone boundary, as described in Section 63N-3-610;
400          (v) includes maps of the proposed housing and transit reinvestment zone to illustrate:
401          (A) the proposed boundary and radius from a public transit hub;
402          (B) proposed housing density within the housing and transit reinvestment zone; and
403          (C) existing zoning and proposed zoning changes related to the housing and transit
404     reinvestment zone;
405          (vi) identifies any development impediments that prevent the development from being
406     a market-rate investment and proposed strategies for addressing each one;
407          (vii) describes the proposed development plan, including the requirements described in
408     Subsections 63N-3-603(2) and (4);
409          (viii) establishes a base year and collection period to calculate the tax increment within
410     the housing and transit reinvestment zone;
411          (ix) establishes a sales and use tax base year to calculate the sales and use tax
412     increment within the housing and transit reinvestment zone in accordance with Section
413     63N-3-610;
414          (x) describes projected maximum revenues generated and the amount of tax increment
415     capture from each taxing entity and proposed expenditures of revenue derived from the housing
416     and transit reinvestment zone;
417          (xi) includes an analysis of other applicable or eligible incentives, grants, or sources of
418     revenue that can be used to reduce the finance gap;
419          (xii) evaluates possible benefits to active and public transportation availability and
420     impacts on air quality;
421          (xiii) proposes a finance schedule to align expected revenue with required financing
422     costs and payments;
423          (xiv) provides a pro-forma for the planned development [including the cost differential
424     between surface parked multi-family development and enhanced development] that:
425          (A) satisfies the requirements described in Subsections 63N-3-603(2), (3), and (4); and
426          (B) includes data showing the cost difference between what type of development could
427     feasibly be developed absent the housing and transit reinvestment zone tax increment and the
428     type of development that is proposed to be developed with the housing and transit reinvestment
429     zone tax increment; and
430          (xv) for a housing and transit reinvestment zone at a commuter rail station, light rail
431     station, or bus rapid transit station that is proposed and not in public transit service operation as
432     of the date of submission of the proposal, demonstrates that the proposed station is:
433          (A) included [in] as needed in phase one of a metropolitan planning organization's
434     adopted long-range transportation plan and in phase one of the relevant public transit district's
435     [five-year] adopted long-range plan; and
436          (B) reasonably anticipated to be constructed in the near future; and
437          (b) submit the housing and transit reinvestment zone proposal to the Governor's Office
438     of Economic Opportunity.
439          (2) As part of the proposal described in Subsection (1), a municipality or public transit
440     county shall study and evaluate possible impacts of a proposed housing and transit
441     reinvestment zone on parking within the city and housing and transit reinvestment zone.
442          (3) (a) After receiving the proposal as described in Subsection (1)(b), the Governor's
443     Office of Economic Opportunity shall:
444          (i) within 14 days after the date on which the Governor's Office of Economic
445     Opportunity receives the proposal described in Subsection (1)(b), provide notice of the
446     proposal to all affected taxing entities, including the Tax Commission, cities, counties, school
447     districts, [and] metropolitan planning organizations, and the county assessor and county auditor
448     of the county in which the housing and transit reinvestment zone is located; and
449          (ii) at the expense of the proposing municipality or public transit county as described in
450     Subsection (5), contract with an independent entity to perform the gap analysis described in
451     Subsection (3)(b).
452          (b) The gap analysis required in Subsection (3)(a)(ii) shall include:
453          (i) a description of the planned development;
454          (ii) a market analysis relative to other comparable project developments included in or
455     adjacent to the municipality or public transit county absent the proposed housing and transit
456     reinvestment zone;
457          (iii) an evaluation of the proposal to and a determination of the adequacy and efficiency
458     of the proposal;
459          (iv) an evaluation of the proposed increment capture needed to cover the enhanced
460     development costs associated with the housing and transit reinvestment zone proposal and
461     enable the proposed development to occur; and
462          (v) based on the market analysis and other findings, an opinion relative to the
463     appropriate amount of potential public financing reasonably determined to be necessary to
464     achieve the objectives described in Subsection 63N-3-603(1).
465          (c) After receiving notice from the Governor's Office of Economic Opportunity of a
466     proposed housing and transit reinvestment zone as described in Subsection (3)(a)(i), the Tax
467     Commission shall:
468          (i) evaluate the feasibility of administering the tax implications of the proposal; and
469          (ii) provide a letter to the Governor's Office of Economic Opportunity describing any
470     challenges in the administration of the proposal, or indicating that the Tax Commission can
471     feasibly administer the proposal.
472          (4) After receiving the results from the analysis described in Subsection (3)(b), the
473     municipality or public transit county proposing the housing and transit reinvestment zone may:
474          (a) amend the housing and transit reinvestment zone proposal based on the findings of
475     the analysis described in Subsection (3)(b) and request that the Governor's Office of Economic
476     Opportunity submit the amended housing and transit reinvestment zone proposal to the housing
477     and transit reinvestment zone committee; or
478          (b) request that the Governor's Office of Economic Opportunity submit the original
479     housing and transit reinvestment zone proposal to the housing and transit reinvestment zone
480     committee.
481          (5) (a) The Governor's Office of Economic Opportunity may accept, as a dedicated
482     credit, up to $20,000 from a municipality or public transit county for the costs of the gap
483     analysis described in Subsection (3)(b).
484          (b) The Governor's Office of Economic Opportunity may expend funds received from a
485     municipality or public transit county as dedicated credits to pay for the costs associated with
486     the gap analysis described in Subsection (3)(b).
487          Section 4. Section 63N-3-605 is amended to read:
488          63N-3-605. Housing and Transit Reinvestment Zone Committee -- Creation.
489          (1) For any housing and transit reinvestment zone proposed under this part, there is
490     created a housing and transit reinvestment zone committee with membership described in
491     Subsection (2).
492          (2) Each housing and transit reinvestment zone committee shall consist of the
493     following members:
494          (a) one representative from the Governor's Office of Economic Opportunity, designated
495     by the executive director of the Governor's Office of Economic Opportunity;
496          (b) one representative from each municipality that is a party to the proposed housing
497     and transit reinvestment zone, designated by the chief executive officer of each respective
498     municipality;
499          (c) a member of the Transportation Commission created in Section 72-1-301;
500          (d) a member of the board of trustees of a large public transit district;
501          (e) one individual from the Office of the State Treasurer, designated by the state
502     treasurer;
503          (f) [one member] two members designated by the president of the Senate;
504          (g) [one member] two members designated by the speaker of the House of
505     Representatives;
506          (h) one member designated by the chief executive officer of each county affected by
507     the housing and transit reinvestment zone;
508          (i) Ĥ→ [one representative] two representatives ←Ĥ designated by the school
508a     superintendent from the school district
509     affected by the housing and transit reinvestment zone; and
510          (j) one representative, representing the largest participating local taxing entity, after the
511     municipality, county, and school district.
512          (3) The individual designated by the Governor's Office of Economic Opportunity as
513     described in Subsection (2)(a) shall serve as chair of the housing and transit reinvestment zone
514     committee.
515          (4) (a) A majority of the members of the housing and transit reinvestment zone
516     committee constitutes a quorum of the housing and transit reinvestment zone committee.
517          (b) An action by a majority of a quorum of the housing and transit reinvestment zone
518     committee is an action of the housing and transit reinvestment zone committee.
519          (5) After the Governor's Office of Economic Opportunity receives the results of the
520     analysis described in Section 63N-3-604, and after the Governor's Office of Economic
521     Opportunity has received a request from the submitting municipality or public transit county to
522     submit the housing and transit reinvestment zone proposal to the housing and transit
523     reinvestment zone committee, the Governor's Office of Economic Opportunity shall notify each
524     of the entities described in Subsection (2) of the formation of the housing and transit
525     reinvestment zone committee.
526          (6) (a) The chair of the housing and transit reinvestment zone committee shall convene
527     a public meeting to consider the proposed housing and transit reinvestment zone.
528          (b) A meeting of the housing and transit reinvestment zone committee is subject to
529     Title 52, Chapter 4, Open and Public Meetings Act.
530          (7) (a) The proposing municipality or public transit county shall present the housing
531     and transit reinvestment zone proposal to the housing and transit reinvestment zone committee
532     in a public meeting.
533          (b) The housing and transit reinvestment zone committee shall:
534          (i) evaluate and verify whether the elements of a housing and transit reinvestment zone
535     described in Subsections 63N-3-603(2) and (4) have been met; and
536          (ii) evaluate the proposed housing and transit reinvestment zone relative to the analysis
537     described in Subsection 63N-3-604(2).
538          (8) (a) Subject to Subsection (8)(b), the housing and transit reinvestment zone
539     committee may:
540          (i) request changes to the housing and transit reinvestment zone proposal based on the
541     analysis, characteristics, and criteria described in Section 63N-3-604; or
542          (ii) vote to approve or deny the proposal.
543          (b) Before the housing and transit reinvestment zone committee may approve the
544     housing and transit reinvestment zone proposal, the municipality or public transit county
545     proposing the housing and transit reinvestment zone shall ensure that the area of the proposed
546     housing and transit reinvestment zone is zoned in such a manner to accommodate the
547     requirements of a housing and transit reinvestment zone described in this section and the
548     proposed development.
549          (9) If a housing and transit reinvestment zone is approved by the committee:
550          (a) the proposed housing and transit reinvestment zone is established according to the
551     terms of the housing and transit reinvestment zone proposal;
552          (b) affected local taxing entities are required to participate according to the terms of the
553     housing and transit reinvestment zone proposal; and
554          (c) each affected taxing [municipality] entity is required to participate at the same rate
555     [as a participating county].
556          (10) A housing and transit reinvestment zone proposal may be amended by following
557     the same procedure as approving a housing and transit reinvestment zone proposal.
558          Section 5. Section 63N-3-607 is amended to read:
559          63N-3-607. Payment, use, and administration of revenue from a housing and
560     transit reinvestment zone.
561          (1) A municipality or public transit county may receive and use tax increment and
562     housing and transit reinvestment zone funds in accordance with this part.
563          (2) (a) A county that collects property tax on property located within a housing and
564     transit reinvestment zone shall, in accordance with Section 59-2-1365, distribute to the
565     municipality or public transit county any tax increment the municipality or public transit county
566     is authorized to receive up to the maximum approved by the housing and transit reinvestment
567     zone committee.
568          (b) Tax increment distributed to a municipality or public transit county in accordance
569     with Subsection (2)(a) is not revenue of the taxing entity or municipality or public transit
570     county.
571          (c) (i) Tax increment paid to the municipality or public transit county are housing and
572     transit reinvestment zone funds and shall be administered by an agency created by the
573     municipality or public transit county within which the housing and transit reinvestment zone is
574     located.
575          (ii) Before an agency may receive housing and transit reinvestment zone funds from
576     the municipality or public transit county, the municipality or public transit county and the
577     agency shall enter into an interlocal agreement with terms that:
578          (A) are consistent with the approval of the housing and transit reinvestment zone
579     committee; and
580          (B) meet the requirements of Section 63N-3-603.
581          (3) (a) A municipality or public transit county and agency shall use housing and transit
582     reinvestment zone funds within, or for the direct benefit of, the housing and transit
583     reinvestment zone.
584          (b) If any housing and transit reinvestment zone funds will be used outside of the
585     housing and transit reinvestment zone there must be a finding in the approved proposal for a
586     housing and transit reinvestment zone that the use of the housing and transit reinvestment zone
587     funds outside of the housing and transit reinvestment zone will directly benefit the housing and
588     transit reinvestment zone.
589          (4) A municipality or public transit county shall use housing and transit reinvestment
590     zone funds to achieve the purposes described in Subsections 63N-3-603(1) and (2), by paying
591     all or part of the costs of any of the following:
592          (a) income targeted housing costs;
593          (b) structured parking within the housing and transit reinvestment zone;
594          (c) enhanced development costs;
595          (d) horizontal construction costs;
596          (e) vertical construction costs;
597          (f) property acquisition costs within the housing and transit reinvestment zone; or
598          (g) the costs of the municipality or public transit county to create and administer the
599     housing and transit reinvestment zone, which may not exceed [1%] 2% of the total housing and
600     transit reinvestment zone funds, plus the costs to complete the gap analysis described in
601     Subsection 63N-3-604(2).
602          (5) Housing and transit reinvestment zone funds may be paid to a participant, if the
603     agency and participant enter into a participation agreement which requires the participant to
604     utilize the housing and transit reinvestment zone funds as allowed in this section.
605          (6) Housing and transit reinvestment zone funds may be used to pay all of the costs of
606     bonds issued by the municipality or public transit county in accordance with Title 17C, Chapter
607     1, Part 5, Agency Bonds, including the cost to issue and repay the bonds including interest.
608          (7) A municipality or public transit county may create one or more public infrastructure
609     districts within the housing and transit reinvestment zone under Title 17D, Chapter 4, Public
610     Infrastructure District Act, and pledge and utilize the housing and transit reinvestment zone
611     funds to guarantee the payment of public infrastructure bonds issued by a public infrastructure
612     district.
613          Section 6. Section 63N-3-610 is amended to read:
614          63N-3-610. Sales and use tax increment in a housing and transit reinvestment
615     zone.
616          (1) A housing and transit reinvestment proposal shall, in consultation with the tax
617     commission:
618          (a) create a sales and use tax boundary as described in Subsection (2); and
619          (b) establish a sales and use tax base year and collection period to calculate and transfer
620     the state sales and use tax increment within the housing and transit reinvestment zone, which
621     sales and use tax base year is established prospectively, 90 days after the date of the notice
622     described in Subsection (4).
623          (2) (a) The municipality or public transit county, in consultation with the tax
624     commission, shall establish a sales and use tax boundary that:
625          (i) is based on state sales and use tax collection boundaries, which are determined
626     using the ZIP Code as defined in Section 59-12-102, including the four digit delivery route
627     extension; [and]
628          (ii) follows as closely as reasonably practicable the boundary of the housing and transit
629     reinvestment zone[.]; and
630          (iii) is one contiguous area that includes at least the entire boundary of the housing and
631     transit reinvestment zone.
632          (b) If a state sales and use tax boundary is bisected by the boundary of the housing and
633     transit reinvestment zone, the housing and transit reinvestment zone may include the entire
634     state sales and use tax boundary.
635          [(b)] (c) The municipality or public transit county shall include the sales and use tax
636     boundary in the housing and transit reinvestment zone proposal as described in Section
637     63N-3-604.
638          (3) (a) Beginning the first day of the calendar quarter one year after the sales and use
639     tax boundary for a housing and transit reinvestment zone is established, the tax commission
640     shall, at least annually, transfer an amount equal to 15% of the sales and use tax increment
641     within an established sales and use tax boundary into the Transit Transportation Investment
642     Fund created in Section 72-2-124.
643          (b) A municipality or public transit county may only propose one sales and use tax
644     increment period for a housing and transit reinvestment zone established under this section.
645          (4) (a) The establishment of a sales and use tax base year and the requirement
646     described in Subsection (3) to transfer incremental sales tax revenue shall take effect:
647          (i) on the first day of a calendar quarter; and
648          (ii) after a 90-day waiting period, beginning on the date the commission receives notice
649     from the municipality or public transit county meeting the requirements of Subsection (4)(b).
650          (b) The notice described in Subsection (4)(a) shall include:
651          (i) a statement that the housing and transit reinvestment zone will be established under
652     this part;
653          (ii) the approval date and effective date of the housing and transit reinvestment zone;
654     and
655          (iii) the definitions of the sales and use tax boundary and sales and use tax base year.
656          Section 7. Section 63N-3-611 is enacted to read:
657          63N-3-611. Boundary adjustments.
658          If the relevant county assessor or county auditor adjusts parcel boundaries relevant to a
659     housing and transit reinvestment zone, the municipality administering the tax increment
660     collected in the housing and transit reinvestment zone may make corresponding adjustments to
661     the boundary of the housing and transit reinvestment zone.
662          Section 8. Effective date.
663          This bill takes effect on May 1, 2024.