Utah Code § 63N-23-203 — Utah Code / Title 63N / Chapter 63N-23 / § 63N-23-203
§ 63N-23-203. Payment, use, and administration of revenue from a housing and transit reinvestment zone.
Status: in_force

(1) In accordance with this part a municipality or public transit county may receive and use property tax increment and housing and transit reinvestment zone funds. (2) (a) A county that collects property tax on property located within a housing and transit reinvestment zone shall, in accordance with Section 59-2-1365, distribute to the municipality or public transit county any property tax increment the municipality or public transit county is authorized to receive up to the maximum approved by the housing and transit reinvestment zone committee. (b) Property tax increment distributed to a municipality or public transit county in accordance with Subsection (2)(a) is not revenue of the taxing entity or municipality or public transit county. (c) (i) Property tax increment paid to the municipality or public transit county are housing and transit reinvestment zone funds and shall be administered by an agency created by the municipality or public transit county within which the housing and transit reinvestment zone is located. (ii) Before an agency may receive housing and transit reinvestment zone funds from the municipality or public transit county, the municipality or public transit county and the agency shall enter into an interlocal agreement with terms that: (A) are consistent with the approval of the housing and transit reinvestment zone committee; and (B) meet the requirements of Section 63N-23-201 or, for a convention center reinvestment zone, the requirements of Section 63N-23-301. (3) (a) A municipality or public transit county and agency shall use housing and transit reinvestment zone funds within, or for the direct benefit of, the housing and transit reinvestment zone. (b) If any housing and transit reinvestment zone funds will be used outside of the housing and transit reinvestment zone, there shall be a finding in the approved proposal for a housing and transit reinvestment zone that the use of the housing and transit reinvestment zone funds outside of the housing and transit reinvestment zone will directly benefit the housing and transit reinvestment zone. (4) (a) A municipality or public transit county shall use housing and transit reinvestment zone funds to achieve the purposes described in Subsections 63N-23-201(1) and (2), by paying all or part of the costs of any of the following: (i) income targeted housing costs; (ii) structured parking within the housing and transit reinvestment zone; (iii) enhanced development costs; (iv) horizontal construction costs; (v) vertical construction costs; (vi) property acquisition costs within the housing and transit reinvestment zone; (vii) the costs of the municipality or public transit county to create and administer the housing and transit reinvestment zone, which may not exceed 2% of the total housing and transit reinvestment zone funds, plus the costs to complete the gap analysis described in Subsection 63N-23-202(2); (viii) subject to Subsection (4)(b), costs for the construction or expansion of child care facilities within the boundary of the housing and transit reinvestment zone; or (ix) extraterritorial affordable housing costs as described in Subsection (4)(c). (b) A municipality or public transit county may not use more than 1% of the total housing and transit reinvestment zone funds to pay costs described in Subsection (4)(a)(viii). (c) (i) As used in this Subsection (4)(c), "extraterritorial affordable housing" means affordable housing, as affordable housing is defined in Section 63N-23-701, that: (A) is located within the municipality proposing the housing and transit reinvestment zone but outside the boundary of the housing and transit reinvestment zone; (B) is part of a development with a density of at least six units per acre; (C) is required to be owner occupied for no less than 25 years; and (D) has not been issued a building permit by the municipality as of the date of the approval of the housing and transit reinvestment zone. (ii) A municipality or public transit county may use housing and transit reinvestment zone funds on extraterritorial affordable housing costs if the municipality or public transit county satisfies the requirement to make a finding that the action will benefit the housing and transit reinvestment zone, as described under Subsection (3)(b). (iii) One hundred percent of extraterritorial affordable housing shall meet the affordable housing requirements described in Section 63N-23-702. (5) Housing and transit reinvestment zone funds may be paid to a participant, if the agency and participant enter into a participation agreement that requires the participant to utilize the housing and transit reinvestment zone funds as allowed in this section. (6) Housing and transit reinvestment zone funds may be used to pay all of the costs of bonds issued by the municipality or public transit county in accordance with Title 17C, Chapter 1, Part 5, Agency Bonds, including the cost to issue and repay the bonds including interest. (7) A municipality or public transit county may create one or more public infrastructure districts within the housing and transit reinvestment zone under Title 17D, Chapter 4, Public Infrastructure District Act, and pledge and utilize the housing and transit reinvestment zone funds to guarantee the payment of public infrastructure bonds issued by a public infrastructure district. (8) A municipality, public transit county, or public infrastructure district that intends to receive or receives tax increment, as defined in Section 59-36-101, shall comply with the requirements described in Title 59, Chapter 36, Tax Increment Financing Reporting.