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Council Provided Information - 3/24/2023H O U S I N G & T R A N S I T R E I N V E S T M E N T Z O N E S R E D E V E L O P M E N T A G E N C Y O F S A L T L A K E C I T Y B O A R D O F D I R E C T O R S A P R I L 1 1 , 2 0 2 3 Housing & Transit reinvestment Zone Act - SB 217/140 STATE HTRZ OBJECTIVES STATE HTRZ REQUIREMENTS Higher utilization of public transit Increasing availability of housing/affordable housing Water conservation through efficient land use Improve air quality by reduced fuel consumption & vehicular trips Strategic Areas: Encourage transformative mixed-use development and investment in public transportation & transit infrastructure Major Transit Corridor Investment: Strategic land use & municipal planning Increase access to employment & educational opportunities PROMOTE TRANSIT-ORIENTED DEVELOPMENT (TOD) BENEFITS OF TOD Land Use: 51% of developable HTRZ area must include residential uses Density: Average of 50 units/acre 10% of housing must be affordable (80% AMI) Reasonable percentage of units with more than one bedroom HTRZ - Funds CAPTURE RATE: •Property Tax Increment Participation - 80% Maximum •Sales Tax Increment Participation - 15% Maximum •HTRZ Administration Fees - 1% of the HTRZ funds + gap analysis expenses Income targeted housing costs Public infrastructure Property acquisition costs Enhanced development costs Horizontal construction costs Vertical construction costs Structured parking within the HTRZ HTRZ Administration, including the State's ELIGIBLE USES: gap analysis Promote community reinvestment more broadly Project area boundaries determined by redevelopment agency Specific development goals Subject to individual taxing entity review Participation rate set by each taxing entity Promote specific housing and transit objectives Project area boundaries centered around specific transit stops with max. acreage Specific development plans Subject to Governor's Office of Economic Opportunity committee review Participation rate up to 80% HTRZ CRA Amends provisions related to the objectives and required characteristics of an HTRZ Restricts how much land a proponent county may own within a HTRZ Requires an HTRZ proposal to include certain maps of the proposed area Requires the Governor’s Office of Economic Opportunity (“GOEO”) to provide notice to relevant entities after receiving a HTRZ proposal Requires the State Tax Commission to provide feedback to a housing and transit reinvestment zone regarding their ability to administer the tax implications of the proposal Amends the membership of the HTRZ committee During the 2023 Legislative Session, Senate Bill 84 was adopted that amends the HTRZ Act as follows: 2023 Legislative Update Potential HTRZ locations Intermodal Hub 650 S. Main 900 S. 200 West Ballpark S-Line TRANSIT STOPS: 900 South & 200 West Fleet Block Grand Boulevards Green Loop TRAX Extension Public Infrastructure Improvements N E XT S TE P S Submit 900 South and 200 West proposal to the State Update tax increment policy HTRZ implementation and review of TIRA requests