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