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Council Provided Information - 11/14/2023STAFF REPORT BOARD OF THE REDEVELOPMENT AGENCY of SALT LAKE CITY TO:RDA Board Members FROM: Jennifer Bruno, Deputy Director DATE: November 14, 2023 RE: Informational Update on Housing and Transit Reinvestment Zone (HTRZ) applications PROJECT TIMELINE: Briefing: Nov 14, 2023 Potential Action: Dec 12, 2023 ISSUE AT-A-GLANCE The Administration’s transmittal provides an overview of the Housing and Transit Reinvestment Zone (HTRZ) tool, and updates the RDA Board on two applications for HTRZs in Salt Lake City: •900 South/200 West TRAX stop – ¼ mile radius around the TRAX stop o Status: submitted earlier this year. Currently before state review committee for consideration. o Potential projects in application: affordable housing, Green Loop, Grand Boulevards, infrastructure improvements, and/or public transit extension. o Next steps: If the state committee approves this application, the next step will be an interlocal agreement between the City and RDA (potentially at the December or January Board/Council meeting). Taxing entity participation will then be set up as directed by the HTRZ committee and potential projects can be considered, with the policy guidance of the HTRZ reimbursement policy which will be considered by the Board in December (see below). •Intermodal Hub – 1/3 mile radius around the frontrunner stop o Status: application to be submitted in the near future o Potential projects in future application: Station Center development efforts, Green Loop along 500 West, light rail extension, shared parking garage, historic preservation. o Next steps: RDA staff is finalizing the HTRZ application for submission to the State HTRZ reimbursement policy (guiding spending for all Salt Lake City HTRZs) – the RDA Board provided feedback on a potential HTRZ reimbursement policy at a work session during the September board meeting. Staff is continuing to incorporate those comments into a revised reimbursement policy for the board to consider adopting at the December board meeting. Goal of the briefing: Review the information presented in anticipation of considering changes to the HTRZ policy at the December RDA Board meeting. Page | 2 KEY ELEMENTS/BACKGROUND A. HTRZ Tool - The State originally created the Housing and Transit Reinvestment Zones (HTRZ) tool via Senate Bill 217 in 2021, in part to respond to the state’s housing crisis. This provides cities (via RDAs) an additional tool to incentivize increased mixed-use, multifamily housing development around existing transit nodes to meet the State’s growth projections and increase transit ridership. Several adjustments to the tool have been made in subsequent legislative sessions. RDA staff has provided the following comparison of HTRZs with traditional Community Reinvestment Areas (CRAs) based on current state code: Per state code, HTRZ funds may be used to pay for apportion of the costs associated with the following: •Income targeted housing costs •Structured parking within the HTRZ •Enhanced development costs •Horizontal construction costs •Vertical construction costs •Property acquisition costs •HTRZ Administrative costs •Public infrastructure POLICY QUESTIONS 1.Prioritizing future HTRZ applications - the Board may wish to discuss with the Administration a prioritization process for future HTRZ applications. As mentioned in the Administration’s transmittal, with the exception of HTRZs around frontrunner stations, the number of HTRZs in Salt Lake County is limited to 8 around TRAX/S-Line stations.