Utah 2023 Regular Session

Utah House Bill HB0446 Compare Versions

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11 H.B. 446
22 LEGISLATIVE GENERAL COUNSEL
33 6 Approved for Filing: K.P. Gasser 6
44 6 02-10-23 1:59 PM 6
55 H.B. 446
66 1 HOUSING AND TRANSIT REINVESTMENT ZONE
77 2 MODIFICATIONS
88 3 2023 GENERAL SESSION
99 4 STATE OF UTAH
1010 5 Chief Sponsor: Casey Snider
1111 6 Senate Sponsor: ____________
1212 7
1313 8LONG TITLE
1414 9General Description:
1515 10 This bill provides a property owner near a public transit hub in a county with a small
1616 11public transit district with certain vested development rights if the county failed to
1717 12submit an application for a housing and transit reinvestment zone before a certain
1818 13deadline.
1919 14Highlighted Provisions:
2020 15 This bill:
2121 16 <provides a property owner near a public transit hub in a county with a small public
2222 17transit district with certain vested development rights if the county failed to submit
2323 18an application for a housing and transit reinvestment zone before a certain deadline.
2424 19Money Appropriated in this Bill:
2525 20 None
2626 21Other Special Clauses:
2727 22 None
2828 23Utah Code Sections Affected:
2929 24AMENDS:
3030 25 63N-3-603, as last amended by Laws of Utah 2022, Chapters 21, 406 and 433
3131 26
3232 27Be it enacted by the Legislature of the state of Utah:
3333 *HB0446* H.B. 446 02-10-23 1:59 PM
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3535 28 Section 1. Section 63N-3-603 is amended to read:
3636 29 63N-3-603. Applicability, requirements, and limitations on a housing and transit
3737 30reinvestment zone.
3838 31 (1) A housing and transit reinvestment zone proposal created under this part shall
3939 32promote the following objectives:
4040 33 (a) higher utilization of public transit;
4141 34 (b) increasing availability of housing, including affordable housing;
4242 35 (c) conservation of water resources through efficient land use;
4343 36 (d) improving air quality by reducing fuel consumption and motor vehicle trips;
4444 37 (e) encouraging transformative mixed-use development and investment in
4545 38transportation and public transit infrastructure in strategic areas;
4646 39 (f) strategic land use and municipal planning in major transit investment corridors as
4747 40described in Subsection 10-9a-403(2);
4848 41 (g) increasing access to employment and educational opportunities; and
4949 42 (h) increasing access to child care.
5050 43 (2) In order to accomplish the objectives described in Subsection (1), a municipality or
5151 44public transit county that initiates the process to create a housing and transit reinvestment zone
5252 45as described in this part shall ensure that the proposal for a housing and transit reinvestment
5353 46zone includes:
5454 47 (a) except as provided in Subsection (3), at least 10% of the proposed dwelling units
5555 48within the housing and transit reinvestment zone are affordable housing units;
5656 49 (b) at least 51% of the developable area within the housing and transit reinvestment
5757 50zone includes residential uses with, except as provided in Subsection (4)(c), an average of 50
5858 51dwelling units per acre or greater;
5959 52 (c) mixed-use development; and
6060 53 (d) a mix of dwelling units to ensure that a reasonable percentage of the dwelling units
6161 54has more than one bedroom.
6262 55 (3) A municipality or public transit county that, at the time the housing and transit
6363 56reinvestment zone proposal is approved by the housing and transit reinvestment zone
6464 57committee, meets the affordable housing guidelines of the United States Department of
6565 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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6767 59described in Subsection (2)(a).
6868 60 (4) (a) A municipality may only propose a housing and transit reinvestment zone at a
6969 61commuter rail station, and a public transit county may only propose a housing and transit
7070 62reinvestment zone at a public transit hub, that:
7171 63 (i) subject to Subsection (5)(a):
7272 64 (A) (I) except as provided in Subsection (4)(a)(i)(A)(II), for a municipality, does not
7373 65exceed a 1/3 mile radius of a commuter rail station;
7474 66 (II) for a municipality that is a city of the first class with a population greater than
7575 67150,000 that is within a county of the first class, with an opportunity zone created pursuant to
7676 68Section 1400Z-1, Internal Revenue Code, does not exceed a 1/2 mile radius of a commuter rail
7777 69station located within the opportunity zone; or
7878 70 (III) for a public transit county, does not exceed a 1/3 mile radius of a public transit
7979 71hub; and
8080 72 (B) has a total area of no more than 125 noncontiguous acres;
8181 73 (ii) subject to Section 63N-3-607, proposes the capture of a maximum of 80% of each
8282 74taxing entity's tax increment above the base year for a term of no more than 25 consecutive
8383 75years on each parcel within a 45-year period not to exceed the tax increment amount approved
8484 76in the housing and transit reinvestment zone proposal; and
8585 77 (iii) the commencement of collection of tax increment, for all or a portion of the
8686 78housing and transit reinvestment zone, will be triggered by providing notice as described in
8787 79Subsection (6).
8888 80 (b) A municipality or public transit county may only propose a housing and transit
8989 81reinvestment zone at a light rail station or bus rapid transit station that:
9090 82 (i) subject to Subsection (5):
9191 83 (A) does not exceed:
9292 84 (I) except as provided in Subsection (4)(b)(i)(A)(II) or (III), a 1/4 mile radius of a bus
9393 85rapid transit station or light rail station;
9494 86 (II) for a municipality that is a city of the first class with a population greater than
9595 87150,000 that is within a county of the first class, a 1/2 mile radius of a light rail station located
9696 88in an opportunity zone created pursuant to Section 1400Z-1, Internal Revenue Code; or
9797 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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9999 90development of 500 acres or more; and
100100 91 (B) has a total area of no more than 100 noncontiguous acres;
101101 92 (ii) subject to Subsection (4)(c) and Section 63N-3-607, proposes the capture of a
102102 93maximum of 80% of each taxing entity's tax increment above the base year for a term of no
103103 94more than 15 consecutive years on each parcel within a 30-year period not to exceed the tax
104104 95increment amount approved in the housing and transit reinvestment zone proposal; and
105105 96 (iii) the commencement of collection of tax increment, for all or a portion of the
106106 97housing and transit reinvestment zone, will be triggered by providing notice as described in
107107 98Subsection (6).
108108 99 (c) For a housing and transit reinvestment zone proposed by a public transit county at a
109109 100public transit hub, or for a housing and transit reinvestment zone proposed by a municipality at
110110 101a bus rapid transit station, if the proposed housing density within the housing and transit
111111 102reinvestment zone is between 39 and 49 dwelling units per acre, the maximum capture of each
112112 103taxing entity's tax increment above the base year is 60%.
113113 104 (d) A municipality that is a city of the first class with a population greater than 150,000
114114 105in a county of the first class as described in Subsections (4)(a)(i)(A)(II) and (4)(b)(i)(A)(II) may
115115 106only propose one housing and transit reinvestment zone within an opportunity zone.
116116 107 (5) (a) For a housing and transit reinvestment zone for a commuter rail station, if a
117117 108parcel is bisected by the relevant radius limitation, the full parcel may be included as part of the
118118 109housing and transit reinvestment zone area and will not count against the limitations described
119119 110in Subsection (4)(a)(i).
120120 111 (b) For a housing and transit reinvestment zone for a light rail or bus rapid transit
121121 112station, if a parcel is bisected by the relevant radius limitation, the full parcel may be included
122122 113as part of the housing and transit reinvestment zone area and will not count against the
123123 114limitations described in Subsection (4)(b)(i).
124124 115 (6) The notice of commencement of collection of tax increment required in Subsection
125125 116(4)(a)(iii) or (4)(b)(iii) shall be sent by mail or electronically to:
126126 117 (a) the tax commission;
127127 118 (b) the State Board of Education;
128128 119 (c) the state auditor;
129129 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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131131 121located;
132132 122 (e) each taxing entity affected by the collection of tax increment from the housing and
133133 123transit reinvestment zone; and
134134 124 (f) the Governor's Office of Economic Opportunity.
135135 125 (7) (a) The maximum number of housing and transit reinvestment zones at light rail
136136 126stations is eight in any given county.
137137 127 (b) The maximum number of housing and transit reinvestment zones at bus rapid
138138 128transit stations is three in any given county.
139139 129 (8) (a) This Subsection (8) applies to a specified county, as defined in Section
140140 13017-27a-408, that has created a small public transit district on or before January 1, 2022.
141141 131 (b) A county described in Subsection (8)(a) shall, in accordance with Section
142142 13263N-3-604, prepare and submit to the Governor's Office of Economic Opportunity a proposal
143143 133to create a housing and transit reinvestment zone on or before December 31, 2022.
144144 134 (c) To accomplish the objectives described in Subsection (1), if a county described in
145145 135Subsection (8)(a) has failed to comply with Subsection (8)(b) by failing to submit an
146146 136application before December 31, 2022, an owner of undeveloped property that is zoned
147147 137community commercial as of December 31, 2022, and is within a 1/3 mile radius of a public
148148 138transit hub in a county described in Subsection (8)(a), shall have the vested right to develop and
149149 139build a mixed-use development including the following:
150150 140 (i) between 39 and 50 dwelling units per acre on average over the subject parcels, with
151151 141at least 10% of the dwelling units deed restricted as affordable housing units;
152152 142 (ii) commercial uses including office, retail, educational, and healthcare in support of
153153 143the mixed-use environment constituting up to 1/3 of the total planned gross building square
154154 144footage of the subject parcels; and
155155 145 (iii) any other infrastructure element necessary or reasonable to support the mixed-use
156156 146environment including parking infrastructure, streets, sidewalks, parks, and trails.