1 | 1 | | H.B. 446 |
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2 | 2 | | LEGISLATIVE GENERAL COUNSEL |
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3 | 3 | | 6 Approved for Filing: K.P. Gasser 6 |
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4 | 4 | | 6 02-10-23 1:59 PM 6 |
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5 | 5 | | H.B. 446 |
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6 | 6 | | 1 HOUSING AND TRANSIT REINVESTMENT ZONE |
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7 | 7 | | 2 MODIFICATIONS |
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8 | 8 | | 3 2023 GENERAL SESSION |
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9 | 9 | | 4 STATE OF UTAH |
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10 | 10 | | 5 Chief Sponsor: Casey Snider |
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11 | 11 | | 6 Senate Sponsor: ____________ |
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12 | 12 | | 7 |
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13 | 13 | | 8LONG TITLE |
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14 | 14 | | 9General Description: |
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15 | 15 | | 10 This bill provides a property owner near a public transit hub in a county with a small |
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16 | 16 | | 11public transit district with certain vested development rights if the county failed to |
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17 | 17 | | 12submit an application for a housing and transit reinvestment zone before a certain |
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18 | 18 | | 13deadline. |
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19 | 19 | | 14Highlighted Provisions: |
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20 | 20 | | 15 This bill: |
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21 | 21 | | 16 <provides a property owner near a public transit hub in a county with a small public |
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22 | 22 | | 17transit district with certain vested development rights if the county failed to submit |
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23 | 23 | | 18an application for a housing and transit reinvestment zone before a certain deadline. |
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24 | 24 | | 19Money Appropriated in this Bill: |
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25 | 25 | | 20 None |
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26 | 26 | | 21Other Special Clauses: |
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27 | 27 | | 22 None |
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28 | 28 | | 23Utah Code Sections Affected: |
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29 | 29 | | 24AMENDS: |
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30 | 30 | | 25 63N-3-603, as last amended by Laws of Utah 2022, Chapters 21, 406 and 433 |
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31 | 31 | | 26 |
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32 | 32 | | 27Be it enacted by the Legislature of the state of Utah: |
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33 | 33 | | *HB0446* H.B. 446 02-10-23 1:59 PM |
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34 | 34 | | - 2 - |
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35 | 35 | | 28 Section 1. Section 63N-3-603 is amended to read: |
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36 | 36 | | 29 63N-3-603. Applicability, requirements, and limitations on a housing and transit |
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37 | 37 | | 30reinvestment zone. |
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38 | 38 | | 31 (1) A housing and transit reinvestment zone proposal created under this part shall |
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39 | 39 | | 32promote the following objectives: |
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40 | 40 | | 33 (a) higher utilization of public transit; |
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41 | 41 | | 34 (b) increasing availability of housing, including affordable housing; |
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42 | 42 | | 35 (c) conservation of water resources through efficient land use; |
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43 | 43 | | 36 (d) improving air quality by reducing fuel consumption and motor vehicle trips; |
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44 | 44 | | 37 (e) encouraging transformative mixed-use development and investment in |
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45 | 45 | | 38transportation and public transit infrastructure in strategic areas; |
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46 | 46 | | 39 (f) strategic land use and municipal planning in major transit investment corridors as |
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47 | 47 | | 40described in Subsection 10-9a-403(2); |
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48 | 48 | | 41 (g) increasing access to employment and educational opportunities; and |
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49 | 49 | | 42 (h) increasing access to child care. |
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50 | 50 | | 43 (2) In order to accomplish the objectives described in Subsection (1), a municipality or |
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51 | 51 | | 44public transit county that initiates the process to create a housing and transit reinvestment zone |
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52 | 52 | | 45as described in this part shall ensure that the proposal for a housing and transit reinvestment |
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53 | 53 | | 46zone includes: |
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54 | 54 | | 47 (a) except as provided in Subsection (3), at least 10% of the proposed dwelling units |
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55 | 55 | | 48within the housing and transit reinvestment zone are affordable housing units; |
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56 | 56 | | 49 (b) at least 51% of the developable area within the housing and transit reinvestment |
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57 | 57 | | 50zone includes residential uses with, except as provided in Subsection (4)(c), an average of 50 |
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58 | 58 | | 51dwelling units per acre or greater; |
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59 | 59 | | 52 (c) mixed-use development; and |
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60 | 60 | | 53 (d) a mix of dwelling units to ensure that a reasonable percentage of the dwelling units |
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61 | 61 | | 54has more than one bedroom. |
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62 | 62 | | 55 (3) A municipality or public transit county that, at the time the housing and transit |
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63 | 63 | | 56reinvestment zone proposal is approved by the housing and transit reinvestment zone |
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64 | 64 | | 57committee, meets the affordable housing guidelines of the United States Department of |
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65 | 65 | | 58Housing and Urban Development at 60% area median income is exempt from the requirement 02-10-23 1:59 PM H.B. 446 |
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66 | 66 | | - 3 - |
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67 | 67 | | 59described in Subsection (2)(a). |
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68 | 68 | | 60 (4) (a) A municipality may only propose a housing and transit reinvestment zone at a |
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69 | 69 | | 61commuter rail station, and a public transit county may only propose a housing and transit |
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70 | 70 | | 62reinvestment zone at a public transit hub, that: |
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71 | 71 | | 63 (i) subject to Subsection (5)(a): |
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72 | 72 | | 64 (A) (I) except as provided in Subsection (4)(a)(i)(A)(II), for a municipality, does not |
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73 | 73 | | 65exceed a 1/3 mile radius of a commuter rail station; |
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74 | 74 | | 66 (II) for a municipality that is a city of the first class with a population greater than |
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75 | 75 | | 67150,000 that is within a county of the first class, with an opportunity zone created pursuant to |
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76 | 76 | | 68Section 1400Z-1, Internal Revenue Code, does not exceed a 1/2 mile radius of a commuter rail |
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77 | 77 | | 69station located within the opportunity zone; or |
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78 | 78 | | 70 (III) for a public transit county, does not exceed a 1/3 mile radius of a public transit |
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79 | 79 | | 71hub; and |
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80 | 80 | | 72 (B) has a total area of no more than 125 noncontiguous acres; |
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81 | 81 | | 73 (ii) subject to Section 63N-3-607, proposes the capture of a maximum of 80% of each |
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82 | 82 | | 74taxing entity's tax increment above the base year for a term of no more than 25 consecutive |
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83 | 83 | | 75years on each parcel within a 45-year period not to exceed the tax increment amount approved |
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84 | 84 | | 76in the housing and transit reinvestment zone proposal; and |
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85 | 85 | | 77 (iii) the commencement of collection of tax increment, for all or a portion of the |
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86 | 86 | | 78housing and transit reinvestment zone, will be triggered by providing notice as described in |
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87 | 87 | | 79Subsection (6). |
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88 | 88 | | 80 (b) A municipality or public transit county may only propose a housing and transit |
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89 | 89 | | 81reinvestment zone at a light rail station or bus rapid transit station that: |
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90 | 90 | | 82 (i) subject to Subsection (5): |
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91 | 91 | | 83 (A) does not exceed: |
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92 | 92 | | 84 (I) except as provided in Subsection (4)(b)(i)(A)(II) or (III), a 1/4 mile radius of a bus |
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93 | 93 | | 85rapid transit station or light rail station; |
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94 | 94 | | 86 (II) for a municipality that is a city of the first class with a population greater than |
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95 | 95 | | 87150,000 that is within a county of the first class, a 1/2 mile radius of a light rail station located |
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96 | 96 | | 88in an opportunity zone created pursuant to Section 1400Z-1, Internal Revenue Code; or |
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97 | 97 | | 89 (III) a 1/2 mile radius of a light rail station located within a master-planned H.B. 446 02-10-23 1:59 PM |
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98 | 98 | | - 4 - |
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99 | 99 | | 90development of 500 acres or more; and |
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100 | 100 | | 91 (B) has a total area of no more than 100 noncontiguous acres; |
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101 | 101 | | 92 (ii) subject to Subsection (4)(c) and Section 63N-3-607, proposes the capture of a |
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102 | 102 | | 93maximum of 80% of each taxing entity's tax increment above the base year for a term of no |
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103 | 103 | | 94more than 15 consecutive years on each parcel within a 30-year period not to exceed the tax |
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104 | 104 | | 95increment amount approved in the housing and transit reinvestment zone proposal; and |
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105 | 105 | | 96 (iii) the commencement of collection of tax increment, for all or a portion of the |
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106 | 106 | | 97housing and transit reinvestment zone, will be triggered by providing notice as described in |
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107 | 107 | | 98Subsection (6). |
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108 | 108 | | 99 (c) For a housing and transit reinvestment zone proposed by a public transit county at a |
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109 | 109 | | 100public transit hub, or for a housing and transit reinvestment zone proposed by a municipality at |
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110 | 110 | | 101a bus rapid transit station, if the proposed housing density within the housing and transit |
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111 | 111 | | 102reinvestment zone is between 39 and 49 dwelling units per acre, the maximum capture of each |
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112 | 112 | | 103taxing entity's tax increment above the base year is 60%. |
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113 | 113 | | 104 (d) A municipality that is a city of the first class with a population greater than 150,000 |
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114 | 114 | | 105in a county of the first class as described in Subsections (4)(a)(i)(A)(II) and (4)(b)(i)(A)(II) may |
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115 | 115 | | 106only propose one housing and transit reinvestment zone within an opportunity zone. |
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116 | 116 | | 107 (5) (a) For a housing and transit reinvestment zone for a commuter rail station, if a |
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117 | 117 | | 108parcel is bisected by the relevant radius limitation, the full parcel may be included as part of the |
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118 | 118 | | 109housing and transit reinvestment zone area and will not count against the limitations described |
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119 | 119 | | 110in Subsection (4)(a)(i). |
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120 | 120 | | 111 (b) For a housing and transit reinvestment zone for a light rail or bus rapid transit |
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121 | 121 | | 112station, if a parcel is bisected by the relevant radius limitation, the full parcel may be included |
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122 | 122 | | 113as part of the housing and transit reinvestment zone area and will not count against the |
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123 | 123 | | 114limitations described in Subsection (4)(b)(i). |
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124 | 124 | | 115 (6) The notice of commencement of collection of tax increment required in Subsection |
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125 | 125 | | 116(4)(a)(iii) or (4)(b)(iii) shall be sent by mail or electronically to: |
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126 | 126 | | 117 (a) the tax commission; |
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127 | 127 | | 118 (b) the State Board of Education; |
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128 | 128 | | 119 (c) the state auditor; |
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129 | 129 | | 120 (d) the auditor of the county in which the housing and transit reinvestment zone is 02-10-23 1:59 PM H.B. 446 |
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130 | 130 | | - 5 - |
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131 | 131 | | 121located; |
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132 | 132 | | 122 (e) each taxing entity affected by the collection of tax increment from the housing and |
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133 | 133 | | 123transit reinvestment zone; and |
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134 | 134 | | 124 (f) the Governor's Office of Economic Opportunity. |
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135 | 135 | | 125 (7) (a) The maximum number of housing and transit reinvestment zones at light rail |
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136 | 136 | | 126stations is eight in any given county. |
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137 | 137 | | 127 (b) The maximum number of housing and transit reinvestment zones at bus rapid |
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138 | 138 | | 128transit stations is three in any given county. |
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139 | 139 | | 129 (8) (a) This Subsection (8) applies to a specified county, as defined in Section |
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140 | 140 | | 13017-27a-408, that has created a small public transit district on or before January 1, 2022. |
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141 | 141 | | 131 (b) A county described in Subsection (8)(a) shall, in accordance with Section |
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142 | 142 | | 13263N-3-604, prepare and submit to the Governor's Office of Economic Opportunity a proposal |
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143 | 143 | | 133to create a housing and transit reinvestment zone on or before December 31, 2022. |
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144 | 144 | | 134 (c) To accomplish the objectives described in Subsection (1), if a county described in |
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145 | 145 | | 135Subsection (8)(a) has failed to comply with Subsection (8)(b) by failing to submit an |
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146 | 146 | | 136application before December 31, 2022, an owner of undeveloped property that is zoned |
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147 | 147 | | 137community commercial as of December 31, 2022, and is within a 1/3 mile radius of a public |
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148 | 148 | | 138transit hub in a county described in Subsection (8)(a), shall have the vested right to develop and |
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149 | 149 | | 139build a mixed-use development including the following: |
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150 | 150 | | 140 (i) between 39 and 50 dwelling units per acre on average over the subject parcels, with |
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151 | 151 | | 141at least 10% of the dwelling units deed restricted as affordable housing units; |
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152 | 152 | | 142 (ii) commercial uses including office, retail, educational, and healthcare in support of |
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153 | 153 | | 143the mixed-use environment constituting up to 1/3 of the total planned gross building square |
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154 | 154 | | 144footage of the subject parcels; and |
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155 | 155 | | 145 (iii) any other infrastructure element necessary or reasonable to support the mixed-use |
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156 | 156 | | 146environment including parking infrastructure, streets, sidewalks, parks, and trails. |
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