Council Provided Information - 12/12/20231
BOARD STAFF REPORT
THE REDEVELOPMENT AGENCY of SALT LAKE CITY
TO:RDA Board Members
FROM: Allison Rowland
Budget & Policy Analyst
DATE:December 12, 2023
RE: INFORMATIONAL: PROPOSED HOUSING AND TRANSIT REINVESTMENT ZONE
(HTRZ) TAX INCREMENT REIMBURSEMENT POLICY
ISSUE AT-A-GLANCE
The Board will receive a third briefing on a proposed new tax increment policy for areas known as Housing and
Transit Reinvestment Zones (HTRZs). State law recently changed to allow municipalities to establish HTRZ
project areas near public transit facilities to encourage mixed-use, affordable housing development and increase
public transit use. Taxing entities would continue to receive the same amount of tax revenue that was generated
before the creation of the HTRZ, and a share of the growing tax receipts can be used by the City to help fund
increased infrastructure, other transportation needs, and water conservation in the area. RDA staff recommends
that the Board adopt a policy specific to HTRZ tax increment because these zones are subject to different
requirements and regulated by a separate section of State Code than traditional project areas.
Goal of the briefing: Review proposed modifications to existing tax increment policy and consider adopting
the HTRZ Tax Increment Reimbursement Program Policy.
ADDITIONAL INFORMATION
A.Background. The HTRZ tax increment policy would serve as policy guidance for negotiation and
distribution of revenue among specific projects for any applications approved by the State. The RDA may
provide project developers a tax increment reimbursement for improvements in an HTRZ that comply with
this policy, the HTRZ Act, as well as the goals outlined in the interlocal agreement between the RDA and
Salt Lake City Corporation, and the RDA’s Mission and Values. These developments must also provide
significant public benefit. The Board reserves the right to modify or deny a tax increment reimbursement
application at any time for any reason.
Item Schedule:
Briefing: December 12, 2023
Set Date: n/a
Public Hearing: n/a
Potential Action: December 12, 2023
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B.Project Thresholds. Two different thresholds would apply, depending on whether a project would
incorporate housing or not.
1.Projects that Incorporate Housing. To be eligible for HTRZ tax increment revenue, projects must
comply with all of the following. Additional requirements for affordable housing are found in section C,
below.
a. meet all applicable standards and objectives of the HTRZ Act and the approved HTRZ.
b. include at least 10% of housing units that are affordable to those earning 60% of the Area
Median Income (AMI) or less. Alternatively, 20% of units must be affordable to those earning
80% AMI and below. Income averaging of units within a single project is permitted to achieve
AMI thresholds.
c. include activated ground floor space (a minimum of 50% of all ground floor, street-facing
building facades), or a private residence.
d. comply with the RDA’s Sustainable Development Policy.
e. provide sufficient evidence that tax increment funding is necessary for the project to succeed
and to verify that the request is reasonable.
➢Policy Question: The Board may wish to ask RDA staff whether the livability
benchmarks in the next section should be included in this list.
2.Threshold Requirements of Projects that Do Not Incorporate Housing. These projects would
be required to:
a. meet all applicable standards and objectives of the HTRZ Act and the approved HTRZ.
b. meet at least two of the RDA’s qualifying livability benchmarks:
•permanent job
creation
•affordable
commercial spaces
•home ownership
•transportation
opportunities
•neighborhood safety
•community engagement
and support
•public art
•public space
•walkability
•building preservation,
rehabilitation, or adaptive
reuse.
➢Policy Question: In the past, Board Members have discussed whether all of
the qualifying livability benchmarks should be given equivalent weight in
terms of their expense and effects on livability. RDA staff could be asked to
provide additional information on this topic.
c. include activated ground floor space.
d. comply with the RDA’s Sustainable Development Policy.
e. provide sufficient evidence that tax increment funding is necessary for the project to succeed
and to verify that the request is reasonable.
C.Affordable Housing Requirements.
1.Deed Restriction. A restriction would require continued use of the specified units as affordable
housing for at least 30 years. Both rent and income restrictions would be included.
➢Policy Question: The recently adopted Thriving in Place plan recommends that deed
restrictions for affordable housing be set at 99 years or, if possible, in perpetuity.
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Would the Board like to discuss whether to raise HTRZ deed-restrictions to reflect
this longer period instead?
2.Bedroom Count Mix. The affordable units must be located on different floors of the building and be
spread among bedroom counts (1-bedroom, 2-bedroom, 3-bedroom, etc.) in the same proportion as the
units available within the rest of the project.
D.Tax Increment for Participating Projects.
1.Maximum Reimbursement Rate. A project which meets only the threshold criteria listed above
would be eligible to receive 60% of the tax increment collected on the property. Another 10% of tax
increment could be added for incorporating any of elements listed below, up to a limit of 90%.
a. Adding qualifying livability benchmarks (see section B2b, above) to the project beyond the
threshold requirements.
b. Providing an additional 10% of total affordable units at 60% AMI and below beyond the
Threshold Requirements.
c. The inclusion of 3- and 4-bedroom units in projects that incorporate housing.
d. Meeting a priority identified in the RDA’s Annual Housing Funding Strategy established
pursuant to the Housing Allocation Funds Policy.
➢Policy Question: Board Members may wish to discuss whether each of the qualifying
livability benchmarks should be given equivalent weight (in terms of their expense
and effects on livability) as the other three elements (b,c, and d). RDA staff could be
asked to provide additional information on this topic.
2.Reimbursement Terms. The State mandates the proposed maximum HTRZ terms depending on the
type of transit in the area. It is the lesser of 15 years for a light rail or bus rapid transit station and 25
years for a commuter rail station, or the total remaining collection years on the project parcels.
3.Maximum Reimbursement Amount. The maximum reimbursement amount would be negotiated
based upon a project’s eligible costs, level of public benefits, and demonstrated financial need,
consistent with the HTRZ and HTRZ Act.
4.Maximum Term: The reimbursement term would be negotiated based upon a project’s level of public
benefits and demonstrated financial need and shall be consistent with the HTRZ Act.
H T R Z T A X I n c r e m e n t
r e i m b u r s e m e n t
P O L I C Y
RDA Board
December 12, 2023
Policy specific to the distribution of tax increment in
Housing & Transit Reinvestment Zones (HTRZs)
Establishes minimum housing affordability and
public benefit thresholds
RDA Board must approve tax
increment reimbursement requests
Updated CRA policy to come
POLICY OVERVIEW
N E I G H B O R H O O D V I B R A N C YECONOMIC O P P O R T U N I T Y E Q U I T Y + I N C L U S I O N
V A L U E S
Leveraging
Timeliness
Return of Investment
Permanent Job Creation &
Retention
Affordable Commercial Spaces
Ownership
Transit Opportunities
Mixed-Income Neighborhoods
Neighborhood Safety
Community Engagement &
Support
Housing for Everyone
Displacement Mitigation
Affordable Housing Preservation
Public Space
Public Art
Architecture & Urban Design
Sustainability
Walkability
Building Preservation, Rehabilitation, &
Adaptive Reuse
Missing Middle & Unique Building Types
We prioritize people-focused projects and
programs that encourage everyone to
participate in and benefit from
development decisions that shape their
communities.
We cultivate distinct and livable built
environments that are contextually
sensitive, resilient, connected, and
sustainable.
We invest in the long-term prosperity and
growth of our local economy.
L I V A B I L I T Y B E N C H M A R K S