• Home
• 2024 General Session
• S.B. 208

S.B. 208 Housing and Transit Reinvestment Zone Amendments

• Bill Text
• Status
• Hearings/Debate

Bill Sponsor: Sen. Harper, Wayne A.

Floor Sponsor: Rep. Whyte, Stephen L.

• Substitute Sponsor: Sen. Harper, Wayne A.

• Drafting Attorney: Kurt P. Gasser
• Fiscal Analyst: Andrea Wilko

---

• Bill Text
  • Introduced
  • Amended
    • Amended Pages Only
  • Enrolled

---

• Other Versions
  • S.B. 208
    Substitute Sponsor:
    

    • Introduced
    • Fiscal Note
    • House Transmittal Letter 1
    • House Transmittal Letter 2
    • Senate Transmittal Letter 1
    • Senate Transmittal Letter 2
  • S.B. 208 1st Substitute
    Substitute Sponsor: Harper, W.
    

    • Introduced
    • Fiscal Note
    • SB0208 comparison

---

• Related Documents
  • Fiscal Note
  • House Committee Amendment 1(passed)
  • House Floor Amendment 2
  • House Floor Amendment 3
  • House Floor Amendment 4(passed)
  • SB0208S01 comparison

---

• Information
  • Last Action: 21 Mar 2024, Governor Signed
  • Last Location: Lieutenant Governor's office for filing

---

• Similar Bills
  • Economic Development
  • Land Use
  • Housing
  • Limited Purpose Local Government Entities
  • Political Subdivisions (Local Issues)
  • Property Tax
  • Sales and Use Tax
  • Revenue and Taxation
  • Transportation
  • Public Transit Districts
  • Governor's Office of Economic Opportunity
  • Planning and Zoning
  • Public Transit
  • Tax Increment Financing
  • Affordable Housing

---

Enrolled

Printer Friendly

S.B. 208

9 63N-3-602 63N-3-603 63N-3-604 63N-3-605 63N-3-607 63N-3-610 63N-3-611

1

HOUSING AND TRANSIT REINVESTMENT ZONE AMENDMENTS 2024 GENERAL SESSION STATE OF UTAH Chief Sponsor: Wayne A. Harper House Sponsor: Stephen L. Whyte

2

3

LONG TITLE

4

General Description:

5

This bill amends provisions related to housing and transit reinvestment zones.

6

Highlighted Provisions:

7

This bill:

8

▸amends definitions related to housing and transit reinvestment zones;

9

▸amends provisions related to affordable housing thresholds to require 12% of the

10

proposed dwelling units be reserved for certain levels of income;

11

▸requires affordable housing requirements be met in each phase of development;

12

▸requires that a housing and transit reinvestment zone be at least 10 acres;

13

▸clarifies notice requirements to certain entities regarding the commencement of

14

collection of tax increment;

15

▸clarifies information required in a housing and transit reinvestment zone proposal;

16

▸adds members to the housing and transit

17

reinvestment zone committee;

18

▸amends provisions regarding overlap of a housing and transit reinvestment zone with a

19

community reinvestment project area;

20

▸amends provisions related to the sales and use tax increment captured within a housing

21

and transit reinvestment zone, including:

22

•how the base year is established;

23

•contiguity of affected sales and use tax boundaries; and

24

•limiting a housing and transit reinvestment zone to only one sales and use tax

25

increment period;

26

▸amends the amount of housing and transit reinvestment zone funds allowed for

27

administration of the housing and transit reinvestment zone;

28

▸allows minor adjustments to a housing and transit reinvestment zone if the county

29

assessor or county auditor adjusts parcel boundaries; and

30

▸makes technical changes.

31

Money Appropriated in this Bill:

32

None

33

Other Special Clauses:

34

None

35

Utah Code Sections Affected:

36

AMENDS:

37

63N-3-602, as last amended by Laws of Utah 2023, Chapter 357

38

63N-3-603, as last amended by Laws of Utah 2023, Chapter 357

39

63N-3-604, as last amended by Laws of Utah 2023, Chapter 357

40

63N-3-605, as last amended by Laws of Utah 2023, Chapter 357

41

63N-3-607, as last amended by Laws of Utah 2022, Chapter 433

42

63N-3-610, as last amended by Laws of Utah 2022, Chapter 433

43

ENACTS:

44

63N-3-611, Utah Code Annotated 1953

45

46

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

47

48

47

Section 1, Section 63N-3-602 is amended to read:

48

63N-3-602. Definitions. As used in this part:

50

(1)"Affordable housing" means housing occupied or reserved for occupancy by households

51

with a gross household income :

52

(a) equal to or less than 80% of the median gross income of the applicable municipal or

53

county statistical area for households of the same size . , in certain circumstances as

54

provided in this part; or

55

(b) equal to or less than 60% of the median gross income of the applicable municipal or

56

county statistical area for households of the same size, in certain circumstances as

57

provided in this part.

58

(2)"Agency" means the same as that term is defined in Section 17C-1-102.

59

(3)"Base taxable value" means a property's taxable value as shown upon the assessment

60

roll last equalized during the base year.

61

(4) "Base year" means, for a proposed housing and transit reinvestment zone area, a year

62

beginning the first day of the calendar quarter determined by the last equalized tax roll

63

before the adoption of the housing and transit reinvestment zone.

64

(4) "Base year" means, for each tax increment collection period triggered within a proposed

65

housing and transit reinvestment zone area, the calendar year prior to the calendar year

66

the tax increment begins to be collected for those parcels triggered for that collection

67

period.

68

(5)"Bus rapid transit" means a high-quality bus-based transit system that delivers fast and

69

efficient service that may include dedicated lanes, busways, traffic signal priority,

70

off-board fare collection, elevated platforms, and enhanced stations.

71

(6)"Bus rapid transit station" means an existing station, stop, or terminal, or a proposed

72

station, stop, or terminal that is specifically identified in as needed in phase one of a

73

metropolitan planning organization's adopted long-range transportation plan and in

74

phase one of the relevant public transit district's five-year adopted long-range transit

75

plan:

76

(a)along an existing bus rapid transit line; or

77

(b)along an extension to an existing bus rapid transit line or new bus rapid transit line.

78

(7) (a)"Commuter rail" means a heavy-rail passenger rail transit facility operated by a

79

large public transit district.

80

(b)"Commuter rail" does not include a light-rail passenger rail facility of a large public

81

transit district.

82

(8)"Commuter rail station" means an existing station, stop, or terminal, or a proposed

83

station, stop, or terminal, which has been specifically identified in as needed in phase

84

one of a metropolitan planning organization's adopted long-range transportation plan and

85

in phase one of the relevant public transit district's five-year adopted long-range transit

86

plan:

87

(a)along an existing commuter rail line;

88

(b)along an extension to an existing commuter rail line or new commuter rail line; or

89

(c)along a fixed guideway extension from an existing commuter rail line.

90

(9) (a)"Developable area" means the portion of land within a housing and transit

91

reinvestment zone available for development and construction of business and

92

residential uses.

93

(b)"Developable area" does not include portions of land within a housing and transit

94

reinvestment zone that are allocated to:

95

(i)parks;

96

(ii)recreation facilities;

97

(iii)open space;

98

(iv)trails;

99

(v)publicly-owned roadway facilities; or

100

(vi)other public facilities.

101

(10)"Dwelling unit" means one or more rooms arranged for the use of one or more

102

individuals living together, as a single housekeeping unit normally having cooking,

103

living, sanitary, and sleeping facilities.

104

(11)"Enhanced development" means the construction of mixed uses including housing,

105

commercial uses, and related facilities.

106

(12)"Enhanced development costs" means extra costs associated with structured parking

107

costs, vertical construction costs, horizontal construction costs, life safety costs,

108

structural costs, conveyor or elevator costs, and other costs incurred due to the increased

109

height of buildings or enhanced development.

110

(13)"Fixed guideway" means the same as that term is defined in Section 59-12-102.

111

(14)"Horizontal construction costs" means the additional costs associated with earthwork,

112

over excavation, utility work, transportation infrastructure, and landscaping to achieve

113

enhanced development in the housing and transit reinvestment zone.

114

(15)"Housing and transit reinvestment zone" means a housing and transit reinvestment

115

zone created pursuant to this part.

116

(16)"Housing and transit reinvestment zone committee" means a housing and transit

117

reinvestment zone committee created pursuant to Section 63N-3-605.

118

(17)"Large public transit district" means the same as that term is defined in Section

119

17B-2a-802 .

120

(18)"Light rail" means a passenger rail public transit system with right-of-way and fixed

121

rails:

122

(a)dedicated to exclusive use by light-rail public transit vehicles;

123

(b)that may cross streets at grade; and

124

(c)that may share parts of surface streets.

125

(19)"Light rail station" means an existing station, stop, or terminal or a proposed station,

126

stop, or terminal, which has been specifically identified in as needed in phase one of a

127

metropolitan planning organization's adopted long-range transportation plan and in

128

phase one of the relevant public transit district's five-year adopted long-range plan:

129

(a)along an existing light rail line; or

130

(b)along an extension to an existing light rail line or new light rail line.

131

(20)"Metropolitan planning organization" means the same as that term is defined in

132

Section 72-1-208.5.

133

(21)"Mixed use development" means development with a mix of :

134

(a) multi-family residential use ; and

135

(b) at least one additional land use , which shall be a significant part of the overall

136

development .

137

(22)"Municipality" means the same as that term is defined in Section 10-1-104.

138

(23)"Participant" means the same as that term is defined in Section 17C-1-102.

139

(24)"Participation agreement" means the same as that term is defined in Section 17C-1-102,

140

except that the agency may not provide and the person may not receive a direct subsidy.

141

(25)"Public transit county" means a county that has created a small public transit district.

142

(26)"Public transit hub" means a public transit depot or station where four or more routes

143

serving separate parts of the county-created transit district stop to transfer riders between

144

routes.

145

(27)"Sales and use tax base year" means a sales and use tax year determined by the first

146

year pertaining to the tax imposed in Section 59-12-103 after the sales and use tax

147

boundary for a housing and transit reinvestment zone is established.

148

(28)"Sales and use tax boundary" means a boundary created as described in Section

149

63N-3-604 , based on state sales and use tax collection that corresponds as closely as

150

reasonably practicable to the housing and transit reinvestment zone boundary.

151

(29)"Sales and use tax increment" means the difference between:

152

(a)the amount of state sales and use tax revenue generated each year following the sales

153

and use tax base year by the sales and use tax from the area within a housing and

154

transit reinvestment zone designated in the housing and transit reinvestment zone

155

proposal as the area from which sales and use tax increment is to be collected; and

156

(b)the amount of state sales and use tax revenue that was generated from that same area

157

during the sales and use tax base year.

158

(30)"Sales and use tax revenue" means revenue that is generated from the tax imposed

159

under Section 59-12-103.

160

(31)"Small public transit district" means the same as that term is defined in Section

161

17B-2a-802 .

162

(32)"Tax Commission" means the State Tax Commission created in Section 59-1-201.

163

(33) (a) "Tax increment" means the difference between:

164

(a) (i) the amount of property tax revenue generated each tax year by a taxing entity

165

from the area within a housing and transit reinvestment zone designated in the

166

housing and transit reinvestment zone proposal as the area from which tax

167

increment is to be collected, using the current assessed value and each taxing

168

entity's current certified tax rate as defined in Section 59-2-924; and

169

(b) (ii) the amount of property tax revenue that would be generated from that same

170

area using the base taxable value and each taxing entity's current certified tax rate

171

as defined in Section 59-2-924.

172

(b) "Tax increment" does not include property tax revenue from:

173

(i) a multicounty assessing and collecting levy described in Subsection 59-2-1602(2);

174

or

175

(ii) a county additional property tax described in Subsection 59-2-1602(4).

176

(34)"Taxing entity" means the same as that term is defined in Section 17C-1-102.

177

(35)"Vertical construction costs" means the additional costs associated with construction

178

above four stories and structured parking to achieve enhanced development in the

179

housing and transit reinvestment zone.

180

181

180

Section 2, Section 63N-3-603 is amended to read:

181

63N-3-603. Applicability, requirements, and limitations on a housing and transit

182

reinvestment zone.

183

(1)A housing and transit reinvestment zone proposal created under this part shall promote

184

the following objectives:

185

(a)higher utilization of public transit;

186

(b)increasing availability of housing, including affordable housing, and fulfillment of

187

moderate income housing plans;

188

(c) promoting and encouraging development of owner-occupied housing;

189

(c) (d) improving efficiencies in parking and transportation, including walkability of

190

communities near public transit facilities;

191

(d) (e) overcoming development impediments and market conditions that render a

192

development cost prohibitive absent the proposal and incentives;

193

(e) (f) conservation of conserving water resources through efficient land use;

194

(f) (g) improving air quality by reducing fuel consumption and motor vehicle trips;

195

(g) (h) encouraging transformative mixed-use development and investment in

196

transportation and public transit infrastructure in strategic areas;

197

(h) (i) strategic land use and municipal planning in major transit investment corridors as

198

described in Subsection 10-9a-403(2);

199

(i) (j) increasing access to employment and educational opportunities; and

200

(j) (k) increasing access to child care.

201

(2) (a) In order to accomplish the objectives described in Subsection (1), a municipality

202

or public transit county that initiates the process to create a housing and transit

203

reinvestment zone as described in this part shall ensure that the proposal for a

204

housing and transit reinvestment zone includes:

205

(a) (i) except as provided in Subsection (3), at least 10% 12% of the proposed

206

dwelling units within the housing and transit reinvestment zone are affordable

207

housing units ; , with:

208

(A) up to 9% of the proposed dwelling units occupied or reserved for occupancy

209

by households with a gross household income equal to or less than 80% of the

210

median gross income of the applicable municipal or county statistical area for

211

households of the same size; and

212

(B) at least 3% of the proposed dwelling units occupied or reserved for occupancy

213

by households with a gross household income equal to or less than 60% of the

214

median gross income of the applicable municipal or county statistical area for

215

households of the same size;

216

(b) at least 51% of the developable area within the housing and transit reinvestment

217

zone includes residential uses with, except as provided in Subsection (4)(c), an

218

average of 50 dwelling units per acre or greater;

219

(ii) except as provided in Subsection (2)(c), a housing and transit reinvestment zone

220

shall include:

221

(A) at least 51% of the developable area within a housing and transit reinvestment

222

zone as residential uses; and

223

(B) an average of at least 50 dwelling units per acre within the acreage of the

224

housing and transit reinvestment zone dedicated to residential uses;

225

(c) (iii) mixed-use development; and

226

(d) (iv) a mix of dwelling units to ensure that a reasonable percentage of the

227

dwelling units has more than one bedroom.

228

(b) (i) If a housing and transit reinvestment zone is phased, a municipality or public

229

transit county shall ensure that a housing and transit reinvestment zone is phased

230

and developed to provide the required 12% of affordable housing units in each

231

phase of development.

232

(ii) A municipality or public transit county may allow a housing and transit

233

reinvestment zone to be phased and developed in a manner to provide more of the

234

required affordable housing units in early phases of development.

235

(iii) A municipality or public transit county shall include in a housing and transit

236

reinvestment zone proposal an affordable housing plan, which may include deed

237

restrictions, to ensure the affordable housing required in the proposal will continue

238

to meet the definition of affordable housing at least throughout the entire term of

239

the housing and transit reinvestment zone.

240

(c) For a housing and transit reinvestment zone proposed by a public transit county at a

241

public transit hub, or for a housing and transit reinvestment zone proposed by a

242

municipality at a bus rapid transit station, the housing and transit reinvestment zone

243

shall include:

244

(i) at least 51% of the developable area within a housing and transit reinvestment

245

zone as residential uses; and

246

(ii) an average of at least 39 dwelling units per acre within the acreage of the housing

247

and transit reinvestment zone dedicated to residential uses.

248

(3)A municipality or public transit county that, at the time the housing and transit

249

reinvestment zone proposal is approved by the housing and transit reinvestment zone

250

committee, meets the affordable housing guidelines of the United States Department of

251

Housing and Urban Development at 60% area median income is exempt from the

252

requirement described in Subsection (2)(a).

253

(4) (a)A municipality may only propose a housing and transit reinvestment zone at a

254

commuter rail station, and a public transit county may only propose a housing and

255

transit reinvestment zone at a public transit hub, that:

256

(i)subject to Subsection (5)(a):

257

(A) (I)except as provided in Subsection (4)(a)(i)(A)(II), for a municipality,

258

does not exceed a 1/3 mile radius of a commuter rail station;

259

(II)for a municipality that is a city of the first class with a population greater

260

than 150,000 that is within a county of the first class, with an opportunity

261

zone created pursuant to Section 1400Z-1, Internal Revenue Code, does not

262

exceed a 1/2 mile radius of a commuter rail station located within the

263

opportunity zone; or

264

(III)for a public transit county, does not exceed a 1/3 mile radius of a public

265

transit 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

269

consecutive years on each parcel within a 45-year period not to exceed the tax

270

increment amount approved in the housing and transit reinvestment zone proposal;

271

and

272

(iii)the commencement of collection of tax increment, for all or a portion of the

273

housing and transit reinvestment zone, will be triggered by providing notice as

274

described in Subsection (6) , but a housing and transit reinvestment zone proposal

275

may not propose or include triggering more than three tax increment collection

276

periods during the applicable 45-year period .

277

(b)A municipality or public transit county may only propose a housing and transit

278

reinvestment zone at a light rail station or bus rapid transit station that:

279

(i)subject to Subsection (5):

280

(A)does not exceed:

281

(I)except as provided in Subsection (4)(b)(i)(A)(II) or (III), (4)(b)(i)(A)(II),

282

(III), or (4)(e), a 1/4 mile radius of a bus rapid transit station or light rail

283

station;

284

(II)for a municipality that is a city of the first class with a population greater than 150,000 that

285

is within a county of the first class, a 1/2 mile radius of a light rail station located in an

286

opportunity zone created pursuant to Section

287

1400Z-1, Internal Revenue Code; or

288

(III)a 1/2 mile radius of a light rail station located within a master-planned

289

development of 500 acres or more; and

290

(B)has a total area of no more than 100 noncontiguous acres;

291

(ii)subject to Subsection (4)(c) and Section 63N-3-607, proposes the capture of a

292

maximum of 80% of each taxing entity's tax increment above the base year for a

293

term of no more than 15 consecutive years on each parcel within a 30-year period

294

not to exceed the tax increment amount approved in the housing and transit

295

reinvestment zone proposal; and

296

(iii)the commencement of collection of tax increment, for all or a portion of the

297

housing and transit reinvestment zone, will be triggered by providing notice as

298

described in Subsection (6) , but a housing and transit reinvestment zone proposal

299

may not propose or include triggering more than three tax increment collection

300

periods during the applicable 30-year period .

301

(c)For a housing and transit reinvestment zone proposed by a public transit county at a

302

public transit hub, or for a housing and transit reinvestment zone proposed by a

303

municipality at a bus rapid transit station, if the proposed housing density within the

304

housing and transit reinvestment zone is between 39 and 49 dwelling units per acre,

305

the maximum capture of each taxing entity's tax increment above the base year is

306

60%.

307

(d)A municipality that is a city of the first class with a population greater than 150,000

308

in a county of the first class as described in Subsections (4)(a)(i)(A)(II) and

309

(4)(b)(i)(A)(II) may only propose one housing and transit reinvestment zone within

310

an opportunity zone.

311

(e) (i) Subject to Subsection (4)(e)(ii), the radius restrictions described in Subsection

312

(4)(b)(i) do not apply, and a housing and transit reinvestment zone may extend to

313

an area between two light rail stations located within a city of the third class if the

314

two light rail stations are within a .95 mile distance on the same light rail line.

315

(ii) If a housing and transit reinvestment zone is extended to accommodate two light

316

rail stations as described in Subsection (4)(e)(i):

317

(A) the housing and transit reinvestment zone is limited to a total area not to

318

exceed 100 noncontiguous acres; and

319

(B) the housing and transit reinvestment zone may not exceed a 1/4 mile radius

320

from the light rail stations or any point on the light rail line between the two

321

stations.

322

(f) If a parcel within the housing and transit reinvestment zone is included as an area that

323

is part of a project area, as that term is defined in Section 17C-1-102, and created

324

under Title 17C, Chapter 1, Agency Operations, that parcel may not be triggered for

325

collection unless the project area funds collection period, as that term is defined in

326

Section 17C-1-102, has expired.

327

(e) A county of the first class may not propose a housing and transit reinvestment zone

328

that includes an area that is part of a project area, as that term is defined in Section

329

17C-1-102 , and created under Title 17C, Chapter 1, Agency Operations, until the

330

project area is dissolved pursuant to Section 17C-1-702.

331

(5) (a)For a housing and transit reinvestment zone for a commuter rail station, if a

332

parcel is bisected by the relevant radius limitation, the full parcel may be included as

333

part of the housing and transit reinvestment zone area and will not count against the

334

limitations described in Subsection (4)(a)(i).

335

(b)For a housing and transit reinvestment zone for a light rail or bus rapid transit

336

station, if a parcel is bisected by the relevant radius limitation, the full parcel may be

337

included as part of the housing and transit reinvestment zone area and will not count

338

against the limitations described in Subsection (4)(b)(i).

339

(c) A housing and transit reinvestment zone may not be smaller than 10 acres.

340

(6)The notice of commencement of collection of tax increment required in Subsection

341

(4)(a)(iii) or (4)(b)(iii) shall be sent by mail or electronically to the following entities no

342

later than January 1 of the year for which the tax increment collection is proposed to

343

commence :

344

(a)the tax commission;

345

(b)the State Board of Education;

346

(c)the state auditor;

347

(d)the auditor of the county in which the housing and transit reinvestment zone is

348

located;

349

(e)each taxing entity affected by the collection of tax increment from the housing and

350

transit reinvestment zone; and

351

(f)the Governor's Office of Economic Opportunity.

352

(7) (a)The maximum number of housing and transit reinvestment zones at light rail

353

stations is eight in any given county.

354

(b)Within a county of the first class, the maximum number of housing and transit

355

reinvestment zones at bus rapid transit stations is three.

356

(8) (a)This Subsection (8) applies to a specified county, as defined in Section

357

17-27a-408 , that has created a small public transit district on or before January 1,

358

2022.

359

(b) (i)A county described in Subsection (8)(a) shall, in accordance with Section

360

63N-3-604 , prepare and submit to the Governor's Office of Economic Opportunity

361

a proposal to create a housing and transit reinvestment zone on or before

362

December 31, 2022.

363

(ii)A county described in Subsection (8)(a) that, on December 31, 2022, was

364

noncompliant under Section 17-27a-408 for failure to demonstrate in the county's

365

moderate income housing report that the county complied with Subsection

366

(8)(b)(i), may cure the deficiency in the county's moderate income housing report

367

by submitting satisfactory proof to the Housing and Community Development

368

Division that, notwithstanding the deadline in Subsection (8)(b)(i), the county has

369

submitted to the Governor's Office of Economic Opportunity a proposal to create

370

a housing and transit reinvestment zone.

371

(c) (i)A county described in Subsection (8)(a) may not propose a housing and transit

372

reinvestment zone if more than 15% of the acreage within the housing and transit

373

reinvestment zone boundary is owned by the county.

374

(ii)For purposes of determining the percentage of acreage owned by the county as

375

described in Subsection (8)(c)(i), a county may exclude any acreage owned that is

376

used for highways, bus rapid transit, light rail, or commuter rail within the

377

boundary of the housing and transit reinvestment zone.

378

(d)To accomplish the objectives described in Subsection (1), if a county described in

379

Subsection (8)(a) has failed to comply with Subsection (8)(b)(i) by failing to submit

380

an application before December 31, 2022, an owner of undeveloped property who

381

has submitted a land use application to the county on or before December 31, 2022,

382

and is within a 1/3 mile radius of a public transit hub in a county described in

383

Subsection (8)(a), including parcels that are bisected by the 1/3 mile radius, shall

384

have the right to develop and build a mixed-use development including the following:

385

(i)excluding the parcels devoted to commercial uses as described in Subsection

386

(8)(d)(ii), at least 39 dwelling units per acre on average over the developable area,

387

with at least 10% of the dwelling units as affordable housing units;

388

(ii)commercial uses including office, retail, educational, and healthcare in support of

389

the mixed-use development constituting up to 1/3 of the total planned gross

390

building square footage of the subject parcels; and

391

(iii)any other infrastructure element necessary or reasonable to support the

392

mixed-use development, including parking infrastructure, streets, sidewalks,

393

parks, and trails.

394

395

394

Section 3, Section 63N-3-604 is amended to read:

395

63N-3-604. Process for a proposal of a housing and transit reinvestment zone --

396

Analysis.

397

(1)Subject to approval of the housing and transit reinvestment zone committee as described

398

in Section 63N-3-605, in order to create a housing and transit reinvestment zone, a

399

municipality or public transit county that has general land use authority over the housing

400

and transit reinvestment zone area, shall:

401

(a)prepare a proposal for the housing and transit reinvestment zone that:

402

(i)demonstrates that the proposed housing and transit reinvestment zone will meet

403

the objectives described in Subsection 63N-3-603(1);

404

(ii)explains how the municipality or public transit county will achieve the

405

requirements of Subsection 63N-3-603(2)(a) (i);

406

(iii)defines the specific transportation infrastructure needs, if any, and proposed

407

improvements;

408

(iv)defines the boundaries of:

409

(A)the housing and transit reinvestment zone; and

410

(B)the sales and use tax boundary corresponding to the housing and transit

411

reinvestment zone boundary, as described in Section 63N-3-610;

412

(v)includes maps of the proposed housing and transit reinvestment zone to illustrate:

413

(A)the proposed boundary and radius from a public transit hub;

414

(B)proposed housing density within the housing and transit reinvestment zone;

415

and

416

(C)existing zoning and proposed zoning changes related to the housing and transit

417

reinvestment zone;

418

(vi)identifies any development impediments that prevent the development from

419

being a market-rate investment and proposed strategies for addressing each one;

420

(vii)describes the proposed development plan, including the requirements described

421

in Subsections 63N-3-603(2) and (4);

422

(viii)establishes a base year and collection period to calculate the tax increment

423

within the housing and transit reinvestment zone;

424

(ix)establishes a sales and use tax base year to calculate the sales and use tax

425

increment within the housing and transit reinvestment zone in accordance with

426

Section 63N-3-610 ;

427

(x)describes projected maximum revenues generated and the amount of tax

428

increment capture from each taxing entity and proposed expenditures of revenue

429

derived from the housing and transit reinvestment zone;

430

(xi)includes an analysis of other applicable or eligible incentives, grants, or sources

431

of revenue that can be used to reduce the finance gap;

432

(xii)evaluates possible benefits to active and public transportation availability and

433

impacts on air quality;

434

(xiii)proposes a finance schedule to align expected revenue with required financing

435

costs and payments;

436

(xiv)provides a pro-forma for the planned development including the cost

437

differential between surface parked multi-family development and enhanced

438

development that :

439

(A) satisfies the requirements described in Subsections 63N-3-603(2), (3), and (4);

440

and

441

(B) includes data showing the cost difference between what type of development

442

could feasibly be developed absent the housing and transit reinvestment zone

443

tax increment and the type of development that is proposed to be developed

444

with the housing and transit reinvestment zone tax increment; and

445

(xv)for a housing and transit reinvestment zone at a commuter rail station, light rail

446

station, or bus rapid transit station that is proposed and not in public transit service

447

operation as of the date of submission of the proposal, demonstrates that the

448

proposed station is:

449

(A)included in as needed in phase one of a metropolitan planning organization's

450

adopted long-range transportation plan and in phase one of the relevant public

451

transit district's five-year adopted long-range plan; and

452

(B)reasonably anticipated to be constructed in the near future; and

453

(b)submit the housing and transit reinvestment zone proposal to the Governor's Office

454

of Economic Opportunity.

455

(2)As part of the proposal described in Subsection (1), a municipality or public transit

456

county shall study and evaluate possible impacts of a proposed housing and transit

457

reinvestment zone on parking within the city and housing and transit reinvestment zone.

458

(3) (a)After receiving the proposal as described in Subsection (1)(b), the Governor's

459

Office of Economic Opportunity shall:

460

(i)within 14 days after the date on which the Governor's Office of Economic

461

Opportunity receives the proposal described in Subsection (1)(b), provide notice

462

of the proposal to all affected taxing entities, including the Tax Commission,

463

cities, counties, school districts, and metropolitan planning organizations , and

464

the county assessor and county auditor of the county in which the housing and

465

transit reinvestment zone is located ; and

466

(ii)at the expense of the proposing municipality or public transit county as described

467

in Subsection (5), contract with an independent entity to perform the gap analysis

468

described in Subsection (3)(b).

469

(b)The gap analysis required in Subsection (3)(a)(ii) shall include:

470

(i)a description of the planned development;

471

(ii)a market analysis relative to other comparable project developments included in

472

or adjacent to the municipality or public transit county absent the proposed

473

housing and transit reinvestment zone;

474

(iii)an evaluation of the proposal to and a determination of the adequacy and

475

efficiency of the proposal;

476

(iv)an evaluation of the proposed increment capture needed to cover the enhanced

477

development costs associated with the housing and transit reinvestment zone

478

proposal and enable the proposed development to occur; and

479

(v)based on the market analysis and other findings, an opinion relative to the

480

appropriate amount of potential public financing reasonably determined to be

481

necessary to achieve the objectives described in Subsection 63N-3-603(1).

482

(c)After receiving notice from the Governor's Office of Economic Opportunity of a

483

proposed housing and transit reinvestment zone as described in Subsection (3)(a)(i),

484

the Tax Commission shall:

485

(i)evaluate the feasibility of administering the tax implications of the proposal; and

486

(ii)provide a letter to the Governor's Office of Economic Opportunity describing any

487

challenges in the administration of the proposal, or indicating that the Tax

488

Commission can feasibly administer the proposal.

489

(4)After receiving the results from the analysis described in Subsection (3)(b), the

490

municipality or public transit county proposing the housing and transit reinvestment

491

zone may:

492

(a)amend the housing and transit reinvestment zone proposal based on the findings of

493

the analysis described in Subsection (3)(b) and request that the Governor's Office of

494

Economic Opportunity submit the amended housing and transit reinvestment zone

495

proposal to the housing and transit reinvestment zone committee; or

496

(b)request that the Governor's Office of Economic Opportunity submit the original

497

housing and transit reinvestment zone proposal to the housing and transit

498

reinvestment zone committee.

499

(5) (a)The Governor's Office of Economic Opportunity may accept, as a dedicated

500

credit, up to $20,000 from a municipality or public transit county for the costs of the

501

gap analysis described in Subsection (3)(b).

502

(b)The Governor's Office of Economic Opportunity may expend funds received from a

503

municipality or public transit county as dedicated credits to pay for the costs

504

associated with the gap analysis described in Subsection (3)(b).

505

506

505

Section 4, Section 63N-3-605 is amended to read:

506

63N-3-605. Housing and Transit Reinvestment Zone Committee -- Creation.

507

(1)For any housing and transit reinvestment zone proposed under this part, there is created

508

a housing and transit reinvestment zone committee with membership described in

509

Subsection (2).

510

(2)Each housing and transit reinvestment zone committee shall consist of the following

511

members:

512

(a)one representative from the Governor's Office of Economic Opportunity, designated

513

by the executive director of the Governor's Office of Economic Opportunity;

514

(b)one representative from each municipality that is a party to the proposed housing and

515

transit reinvestment zone, designated by the chief executive officer of each respective

516

municipality;

517

(c)a member of the Transportation Commission created in Section 72-1-301;

518

(d)a member of the board of trustees of a large public transit district;

519

(e)one individual from the Office of the State Treasurer, designated by the state

520

treasurer;

521

(f) one member two members designated by the president of the Senate;

522

(g) one member two members designated by the speaker of the House of

523

Representatives;

524

(h)one member designated by the chief executive officer of each county affected by the

525

housing and transit reinvestment zone;

526

(i) one representative two representatives designated by the school superintendent from

527

the school district affected by the housing and transit reinvestment zone; and

528

(j)one representative, representing the largest participating local taxing entity, after the

529

municipality, county, and school district.

530

(3)The individual designated by the Governor's Office of Economic Opportunity as

531

described in Subsection (2)(a) shall serve as chair of the housing and transit

532

reinvestment zone committee.

533

(4) (a)A majority of the members of the housing and transit reinvestment zone

534

committee constitutes a quorum of the housing and transit reinvestment zone

535

committee.

536

(b)An action by a majority of a quorum of the housing and transit reinvestment zone

537

committee is an action of the housing and transit reinvestment zone committee.

538

(5)After the Governor's Office of Economic Opportunity receives the results of the analysis

539

described in Section 63N-3-604, and after the Governor's Office of Economic

540

Opportunity has received a request from the submitting municipality or public transit

541

county to submit the housing and transit reinvestment zone proposal to the housing and

542

transit reinvestment zone committee, the Governor's Office of Economic Opportunity

543

shall notify each of the entities described in Subsection (2) of the formation of the

544

housing and transit reinvestment zone committee.

545

(6) (a)The chair of the housing and transit reinvestment zone committee shall convene a

546

public meeting to consider the proposed housing and transit reinvestment zone.

547

(b)A meeting of the housing and transit reinvestment zone committee is subject to Title

548

52, Chapter 4, Open and Public Meetings Act.

549

(7) (a)The proposing municipality or public transit county shall present the housing and

550

transit reinvestment zone proposal to the housing and transit reinvestment zone

551

committee in a public meeting.

552

(b)The housing and transit reinvestment zone committee shall:

553

(i)evaluate and verify whether the elements of a housing and transit reinvestment

554

zone described in Subsections 63N-3-603(2) and (4) have been met; and

555

(ii)evaluate the proposed housing and transit reinvestment zone relative to the

556

analysis described in Subsection 63N-3-604(2).

557

(8) (a)Subject to Subsection (8)(b), the housing and transit reinvestment zone

558

committee may:

559

(i)request changes to the housing and transit reinvestment zone proposal based on

560

the analysis, characteristics, and criteria described in Section 63N-3-604; or

561

(ii)vote to approve or deny the proposal.

562

(b)Before the housing and transit reinvestment zone committee may approve the

563

housing and transit reinvestment zone proposal, the municipality or public transit

564

county proposing the housing and transit reinvestment zone shall ensure that the area

565

of the proposed housing and transit reinvestment zone is zoned in such a manner to

566

accommodate the requirements of a housing and transit reinvestment zone described

567

in this section and the proposed development.

568

(9)If a housing and transit reinvestment zone is approved by the committee:

569

(a)the proposed housing and transit reinvestment zone is established according to the

570

terms of the housing and transit reinvestment zone proposal;

571

(b)affected local taxing entities are required to participate according to the terms of the

572

housing and transit reinvestment zone proposal; and

573

(c)each affected taxing municipality entity is required to participate at the same rate as

574

a participating county .

575

(10)A housing and transit reinvestment zone proposal may be amended by following the

576

same procedure as approving a housing and transit reinvestment zone proposal.

577

578

577

Section 5, Section 63N-3-607 is amended to read:

578

63N-3-607. Payment, use, and administration of revenue from a housing and

579

transit reinvestment zone.

580

(1)A municipality or public transit county may receive and use tax increment and housing

581

and transit reinvestment zone funds in accordance with this part.

582

(2) (a)A county that collects property tax on property located within a housing and

583

transit reinvestment zone shall, in accordance with Section 59-2-1365, distribute to

584

the municipality or public transit county any tax increment the municipality or public

585

transit county is authorized to receive up to the maximum approved by the housing

586

and transit reinvestment zone committee.

587

(b)Tax increment distributed to a municipality or public transit county in accordance

588

with Subsection (2)(a) is not revenue of the taxing entity or municipality or public

589

transit county.

590

(c) (i)Tax increment paid to the municipality or public transit county are housing and

591

transit reinvestment zone funds and shall be administered by an agency created by

592

the municipality or public transit county within which the housing and transit

593

reinvestment zone is located.

594

(ii)Before an agency may receive housing and transit reinvestment zone funds from

595

the municipality or public transit county, the municipality or public transit county

596

and the agency shall enter into an interlocal agreement with terms that:

597

(A)are consistent with the approval of the housing and transit reinvestment zone

598

committee; and

599

(B)meet the requirements of Section 63N-3-603.

600

(3) (a)A municipality or public transit county and agency shall use housing and transit

601

reinvestment zone funds within, or for the direct benefit of, the housing and transit

602

reinvestment zone.

603

(b)If any housing and transit reinvestment zone funds will be used outside of the

604

housing and transit reinvestment zone there must be a finding in the approved

605

proposal for a housing and transit reinvestment zone that the use of the housing and

606

transit reinvestment zone funds outside of the housing and transit reinvestment zone

607

will directly benefit the housing and transit reinvestment zone.

608

(4)A municipality or public transit county shall use housing and transit reinvestment zone

609

funds to achieve the purposes described in Subsections 63N-3-603(1) and (2), by paying

610

all or part of the costs of any of the following:

611

(a)income targeted housing costs;

612

(b)structured parking within the housing and transit reinvestment zone;

613

(c)enhanced development costs;

614

(d)horizontal construction costs;

615

(e)vertical construction costs;

616

(f)property acquisition costs within the housing and transit reinvestment zone; or

617

(g)the costs of the municipality or public transit county to create and administer the

618

housing and transit reinvestment zone, which may not exceed 1% 2% of the total

619

housing and transit reinvestment zone funds, plus the costs to complete the gap

620

analysis described in Subsection 63N-3-604(2).

621

(5)Housing and transit reinvestment zone funds may be paid to a participant, if the agency

622

and participant enter into a participation agreement which requires the participant to

623

utilize the housing and transit reinvestment zone funds as allowed in this section.

624

(6)Housing and transit reinvestment zone funds may be used to pay all of the costs of

625

bonds issued by the municipality or public transit county in accordance with Title 17C,

626

Chapter 1, Part 5, Agency Bonds, including the cost to issue and repay the bonds

627

including interest.

628

(7)A municipality or public transit county may create one or more public infrastructure

629

districts within the housing and transit reinvestment zone under Title 17D, Chapter 4,

630

Public Infrastructure District Act, and pledge and utilize the housing and transit

631

reinvestment zone funds to guarantee the payment of public infrastructure bonds issued

632

by a public infrastructure district.

633

634

633

Section 6, Section 63N-3-610 is amended to read:

634

63N-3-610. Sales and use tax increment in a housing and transit reinvestment

635

zone.

636

(1)A housing and transit reinvestment proposal shall, in consultation with the tax

637

commission:

638

(a)create a sales and use tax boundary as described in Subsection (2); and

639

(b)establish a sales and use tax base year and collection period to calculate and transfer

640

the state sales and use tax increment within the housing and transit reinvestment zone ,

641

which sales and use tax base year is established prospectively, 90 days after the date

642

of the notice described in Subsection (4) .

643

(2) (a)The municipality or public transit county, in consultation with the tax

644

commission, shall establish a sales and use tax boundary that:

645

(i)is based on state sales and use tax collection boundaries , which are determined

646

using the ZIP Code as defined in Section 59-12-102, including the four digit

647

delivery route extension ; and

648

(ii)follows as closely as reasonably practicable the boundary of the housing and

649

transit reinvestment zone . ; and

650

(iii) is one contiguous area that includes at least the entire boundary of the housing

651

and transit reinvestment zone.

652

(b) If a state sales and use tax boundary is bisected by the boundary of the housing and

653

transit reinvestment zone, the housing and transit reinvestment zone may include the

654

entire state sales and use tax boundary.

655

(b) (c) The municipality or public transit county shall include the sales and use tax

656

boundary in the housing and transit reinvestment zone proposal as described in

657

Section 63N-3-604.

658

(3) (a) Beginning the first day of the calendar quarter one year after the sales and use tax

659

boundary for a housing and transit reinvestment zone is established, the tax

660

commission shall, at least annually, transfer an amount equal to 15% of the sales and

661

use tax increment within an established sales and use tax boundary into the Transit

662

Transportation Investment Fund created in Section 72-2-124.

663

(b) A municipality or public transit county may only propose one sales and use tax

664

increment period for a housing and transit reinvestment zone established under this

665

section.

666

(4) (a)The establishment of a sales and use tax base year and the requirement described

667

in Subsection (3) to transfer incremental sales tax revenue shall take effect:

668

(i)on the first day of a calendar quarter; and

669

(ii)after a 90-day waiting period, beginning on the date the commission receives

670

notice from the municipality or public transit county meeting the requirements of

671

Subsection (4)(b).

672

(b)The notice described in Subsection (4)(a) shall include:

673

(i)a statement that the housing and transit reinvestment zone will be established

674

under this part;

675

(ii)the approval date and effective date of the housing and transit reinvestment zone;

676

and

677

(iii)the definitions of the sales and use tax boundary and sales and use tax base year.

678

679

678

Section 7, Section 63N-3-611 is enacted to read:

679

63N-3-611. Boundary adjustments. If the relevant county assessor or county auditor adjusts parcel boundaries relevant to

681

a housing and transit reinvestment zone, the municipality administering the tax

682

increment collected in the housing and transit reinvestment zone may make

683

corresponding adjustments to the boundary of the housing and transit reinvestment

684

zone.

685

685

Section 8. Effective date. This bill takes effect on May 1, 2024.