Section 603 – Applicability, requirements, and limitations on a housing and transit reinvestment zone.

Effective 6/1/2022
63N-3-603. Applicability, requirements, and limitations on a housing and transit reinvestment zone.

• (1) A housing and transit reinvestment zone proposal created under this part shall promote the following objectives:
  • (a) higher utilization of public transit;
  • (b) increasing availability of housing, including affordable housing;
  • (c) conservation of water resources through efficient land use;
  • (d) improving air quality by reducing fuel consumption and motor vehicle trips;
  • (e) encouraging transformative mixed-use development and investment in transportation and public transit infrastructure in strategic areas;
  • (f) strategic land use and municipal planning in major transit investment corridors as described in Subsection 10-9a-403(2);
  • (g) increasing access to employment and educational opportunities; and
  • (h) increasing access to child care.

• (2) In order to accomplish the objectives described in Subsection (1), a municipality or public transit county that initiates the process to create a housing and transit reinvestment zone as described in this part shall ensure that the proposal for a housing and transit reinvestment zone includes:
  • (a) except as provided in Subsection (3), at least 10% of the proposed dwelling units within the housing and transit reinvestment zone are affordable housing units;
  • (b) at least 51% of the developable area within the housing and transit reinvestment zone includes residential uses with, except as provided in Subsection (4)(c), an average of 50 dwelling units per acre or greater;
  • (c) mixed-use development; and
  • (d) a mix of dwelling units to ensure that a reasonable percentage of the dwelling units has more than one bedroom.

• (3) A municipality or public transit county that, at the time the housing and transit reinvestment zone proposal is approved by the housing and transit reinvestment zone committee, meets the affordable housing guidelines of the United States Department of Housing and Urban Development at 60% area median income is exempt from the requirement described in Subsection (2)(a).

• (4)
  • (a) A municipality may only propose a housing and transit reinvestment zone at a commuter rail station, and a public transit county may only propose a housing and transit reinvestment zone at a public transit hub, that:
    • (i) subject to Subsection (5)(a):
      • (A)
        • (I) except as provided in Subsection (4)(a)(i)(A)(II), for a municipality, does not exceed a 1/3 mile radius of a commuter rail station;
        • (II) for a municipality that is a city of the first class with a population greater than 150,000 that is within a county of the first class, with an opportunity zone created pursuant to Section 1400Z-1, Internal Revenue Code, does not exceed a 1/2 mile radius of a commuter rail station located within the opportunity zone; or
        • (III) for a public transit county, does not exceed a 1/3 mile radius of a public transit hub; and
      • (B) has a total area of no more than 125 noncontiguous acres;
    • (ii) subject to Section 63N-3-607, proposes the capture of a maximum of 80% of each taxing entity’s tax increment above the base year for a term of no more than 25 consecutive years on each parcel within a 45-year period not to exceed the tax increment amount approved in the housing and transit reinvestment zone proposal; and
    • (iii) the commencement of collection of tax increment, for all or a portion of the housing and transit reinvestment zone, will be triggered by providing notice as described in Subsection (6).
  • (b) A municipality or public transit county may only propose a housing and transit reinvestment zone at a light rail station or bus rapid transit station that:
    • (i) subject to Subsection (5):
      • (A) does not exceed:
        • (I) except as provided in Subsection (4)(b)(i)(A)(II) or (III), a 1/4 mile radius of a bus rapid transit station or light rail station;
        • (II) for a municipality that is a city of the first class with a population greater than 150,000 that is within a county of the first class, a 1/2 mile radius of a light rail station located in an opportunity zone created pursuant to Section 1400Z-1, Internal Revenue Code; or
        • (III) a 1/2 mile radius of a light rail station located within a master-planned development of 500 acres or more; and
      • (B) has a total area of no more than 100 noncontiguous acres;
    • (ii) subject to Subsection (4)(c) and Section 63N-3-607, proposes the capture of a maximum of 80% of each taxing entity’s tax increment above the base year for a term of no more than 15 consecutive years on each parcel within a 30-year period not to exceed the tax increment amount approved in the housing and transit reinvestment zone proposal; and
    • (iii) the commencement of collection of tax increment, for all or a portion of the housing and transit reinvestment zone, will be triggered by providing notice as described in Subsection (6).
  • (c) For a housing and transit reinvestment zone proposed by a public transit county at a public transit hub, or for a housing and transit reinvestment zone proposed by a municipality at a bus rapid transit station, if the proposed housing density within the housing and transit reinvestment zone is between 39 and 49 dwelling units per acre, the maximum capture of each taxing entity’s tax increment above the base year is 60%.
  • (d) A municipality that is a city of the first class with a population greater than 150,000 in a county of the first class as described in Subsections (4)(a)(i)(A)(II) and (4)(b)(i)(A)(II) may only propose one housing and transit reinvestment zone within an opportunity zone.

• (5)
  • (a) For a housing and transit reinvestment zone for a commuter rail station, if a parcel is bisected by the relevant radius limitation, the full parcel may be included as part of the housing and transit reinvestment zone area and will not count against the limitations described in Subsection (4)(a)(i).
  • (b) For a housing and transit reinvestment zone for a light rail or bus rapid transit station, if a parcel is bisected by the relevant radius limitation, the full parcel may be included as part of the housing and transit reinvestment zone area and will not count against the limitations described in Subsection (4)(b)(i).

• (6) The notice of commencement of collection of tax increment required in Subsection (4)(a)(iii) or (4)(b)(iii) shall be sent by mail or electronically to:
  • (a) the tax commission;
  • (b) the State Board of Education;
  • (c) the state auditor;
  • (d) the auditor of the county in which the housing and transit reinvestment zone is located;
  • (e) each taxing entity affected by the collection of tax increment from the housing and transit reinvestment zone; and
  • (f) the Governor’s Office of Economic Opportunity.

• (7)
  • (a) The maximum number of housing and transit reinvestment zones at light rail stations is eight in any given county.
  • (b) The maximum number of housing and transit reinvestment zones at bus rapid transit stations is three in any given county.

• (8)
  • (a) This Subsection (8) applies to a specified county, as defined in Section 17-27a-408, that has created a small public transit district on or before January 1, 2022.
  • (b) A county described in Subsection (8)(a) shall, in accordance with Section 63N-3-604, prepare and submit to the Governor’s Office of Economic Opportunity a proposal to create a housing and transit reinvestment zone on or before December 31, 2022.

Amended by Chapter 21, 2022 General Session
Amended by Chapter 406, 2022 General Session
Amended by Chapter 433, 2022 General Session