Utah 2023 Regular Session

Utah House Bill HB0446 Compare Versions

Only one version of the bill is available at this time.

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