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Third Substitute S.B. 230
Representative Jeff Alexander proposes to substitute the following bill:
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REDEVELOPMENT AGENCY AMENDMENT
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2000 GENERAL SESSION
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STATE OF UTAH
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Sponsor: John L. Valentine
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AN ACT RELATING TO SPECIAL DISTRICTS; DEFINING EDUCATION HOUSING
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DEVELOPMENT; AUTHORIZING REDEVELOPMENT AGENCIES TO ENGAGE IN
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EDUCATION HOUSING DEVELOPMENT; MODIFYING THE MAKEUP OF THE TAXING
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AGENCY COMMITTEE UNDER CERTAIN CIRCUMSTANCES; ALLOWING SCHOOL
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DISTRICTS TO CHOOSE NOT TO LOSE TAX INCREMENT FUNDS UNDER CERTAIN
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CIRCUMSTANCES; AND MAKING TECHNICAL CHANGES.
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This act affects sections of Utah Code Annotated 1953 as follows:
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AMENDS:
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17A-2-1202, as last amended by Chapter 320, Laws of Utah 1995
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17A-2-1203, as last amended by Chapter 50, Laws of Utah 1993
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17A-2-1204, as repealed and reenacted by Chapter 50, Laws of Utah 1993
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17A-2-1205, as last amended by Chapter 50, Laws of Utah 1993
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17A-2-1206, as last amended by Chapter 249, Laws of Utah 1996
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17A-2-1207, as repealed and reenacted by Chapter 50, Laws of Utah 1993
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17A-2-1209, as repealed and reenacted by Chapter 50, Laws of Utah 1993
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17A-2-1220, as last amended by Chapter 50, Laws of Utah 1993
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17A-2-1222, as last amended by Chapter 249, Laws of Utah 1996
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17A-2-1225, as last amended by Chapter 249, Laws of Utah 1996
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17A-2-1230, as last amended by Chapter 50, Laws of Utah 1993
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17A-2-1236, as last amended by Chapter 50, Laws of Utah 1993
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17A-2-1247.5, as last amended by Chapters 21 and 194, Laws of Utah 1999
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17A-2-1263, as enacted by Chapter 50, Laws of Utah 1993
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17A-2-1264, as enacted by Chapter 279, Laws of Utah 1998
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
17A-2-1202
is amended to read:
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17A-2-1202. Definitions.
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As used in this part:
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(1) "Agency" means the legislative body of a community when designated by the
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legislative body itself to act as a redevelopment agency.
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(2) "Base tax amount" means that portion of taxes that would be produced by the rate upon
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which the tax is levied each year by or for all taxing agencies upon the total sum of the taxable
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value of the taxable property in a redevelopment project area as shown upon the assessment roll
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used in connection with the taxation of the property by the taxing agencies, last equalized before
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the effective date of the:
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(a) ordinance approving the plan for projects for which a preliminary plan has been
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prepared prior to April 1, 1993, and for which all of the following have occurred prior to July 1,
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1993: the agency blight study has been completed, and a hearing under Section
17A-2-1221
has
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in good faith been commenced by the agency; or
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(b) the first approved project area budget for projects for which a preliminary plan has
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been prepared after April 1, 1993, and for which any of the following have occurred after July 1,
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1993: the completion of the agency blight study, and the good faith commencement of the hearing
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by the agency under Section
17A-2-1221
; and
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(c) as adjusted by Sections
17A-2-1250.5
,
17A-2-1251
,
17A-2-1252
, and
17A-2-1253
.
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(3) "Blighted area" or "blight" means:
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(a) for projects for which a preliminary plan has been prepared prior to April 1, 1993, and
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for which all of the following have occurred prior to July 1, 1993: the agency blight study has been
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completed, and a hearing under Section
17A-2-1221
has in good faith been commenced by the
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agency, an area used or intended to be used for residential, commercial, industrial, or other
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purposes or any combination of such uses which is characterized by two or more of the following
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factors:
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(i) defective design and character of physical construction;
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(ii) faulty interior arrangement and exterior spacing;
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(iii) high density of population and overcrowding;
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(iv) inadequate provision for ventilation, light, sanitation, open spaces, and recreation
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facilities;
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(v) age, obsolescence, deterioration, dilapidation, mixed character, or shifting of uses;
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(vi) economic dislocation, deterioration, or disuse, resulting from faulty planning;
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(vii) subdividing and sale of lots of irregular form and shape and inadequate size for proper
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usefulness and development;
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(viii) laying out of lots in disregard of the contours and other physical characteristics of
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the ground and surrounding conditions;
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(ix) existence of inadequate streets, open spaces, and utilities; and
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(x) existence of lots or other areas which are subject to being submerged by water.
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(b) For projects for which a preliminary plan has been prepared after April 1, 1993, and
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for which any of the following have occurred after July 1, 1993: the completion of the agency
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blight study, and the good faith commencement of the hearing by the agency under Section
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17A-2-1221
, when a finding of blight is required, an area with buildings or improvements, used
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or intended to be used for residential, commercial, industrial, or other urban purposes or any
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combination of these uses, which:
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(i) contains buildings and improvements, not including out-buildings, on at least 50% of
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the number of parcels and the area of those parcels is at least 50% of the project area; and
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(ii) is unfit or unsafe to occupy or may be conducive to ill health, transmission of disease,
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infant mortality, juvenile delinquency, or crime because of any three or more of the following
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factors:
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(A) defective character of physical construction;
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(B) high density of population and overcrowding;
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(C) inadequate provision for ventilation, light, sanitation, and open spaces;
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(D) mixed character and shifting of uses which results in obsolescence, deterioration, or
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dilapidation;
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(E) economic deterioration or continued disuse;
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(F) lots of irregular form and shape and inadequate size for proper usefulness and
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development, or laying out of lots in disregard of the contours and other physical characteristics
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of the ground and surrounding conditions;
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(G) existence of inadequate streets, open spaces, and utilities;
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(H) existence of lots or other areas which are subject to being submerged by water; and
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(I) existence of any hazardous or solid waste defined as any substance defined, regulated,
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or listed as "hazardous substances," "hazardous materials," "hazardous wastes," "toxic waste,"
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"pollutant," "contaminant," or "toxic substances," or identified as hazardous to human health or
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the environment under state or federal law or regulation.
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(c) For purposes of Subsection (3)(b), if a developer involved in the project area
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redevelopment [or], economic, or education housing development causes any of the factors of
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blight listed in Subsection (3)(b)(ii), the developer-caused blight may not be used as one of the
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three required elements of blight. Notwithstanding the provisions of this section, any blight caused
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by owners or tenants who may become developers under the provisions of Section
17A-2-1214
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shall not be subject to this Subsection (3)(c).
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(4) "Bond" means any bonds, notes, interim certificates, debentures, or other obligations
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issued by an agency.
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(5) "Community" means a city, county, town, or any combination of these.
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(6) "Economic development" means the planning or replanning, design or redesign,
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development or redevelopment, construction or reconstruction, rehabilitation, business relocation
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or any combination of these, within all or part of a project area and the provision of office,
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industrial, manufacturing, warehousing, distribution, parking, public or other facilities, or
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improvements as may benefit the state or the community in order for a public or private employer
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to create additional jobs within the state.
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(7) "Education housing development" means to provide high density housing adjacent to
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a public or private institution of higher education.
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[(7)] (8) "Federal government" means the United States or any of its agencies or
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instrumentalities.
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[(8)] (9) "Legislative body" means the city council, city commission, county legislative
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body, or other legislative body of the community.
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[(9)] (10) "Planning commission" means a city, town, or county planning commission
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established pursuant to law or charter.
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[(10)] (11) "Project area" or "redevelopment project area" means an area of a community
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within a designated redevelopment survey area, the redevelopment of which is necessary to
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eliminate blight or provide economic or education housing development and which is selected by
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the redevelopment agency pursuant to this part.
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[(11)] (12) "Project area budget" means, for projects for which a preliminary plan has been
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prepared after April 1, 1993, and for which any of the following have occurred after July 1, 1993:
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the completion of the agency blight study, and the good faith commencement of the hearing by the
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agency under Section
17A-2-1221
, a multiyear budget for the redevelopment plan prepared by the
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redevelopment agency showing:
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(a) the base year taxable value of the project area;
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(b) the projected tax increment of the project area, including the amount of any tax
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increment shared with other taxing districts which shall include:
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(i) the tax increment expected to be used to implement the redevelopment plan including
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the estimated amount of tax increment to be used for land acquisition, public, and infrastructure
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improvements, and loans, grants, or tax incentives to private and public entities; and
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(ii) the total principal amount of bonds expected to be issued by the redevelopment agency
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to finance the project;
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(c) the tax increment expected to be used to cover the cost of administering the project area
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plan;
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(d) a legal description for the portion of the project area from which tax increment will be
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collected pursuant to Section
17A-2-1247.5
, if the area from which tax increment is to be collected
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is less than the entire project area; and
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(e) for properties to be sold, the expected total cost of the property to the agency and the
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expected sales price to be paid by the purchaser.
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[(12)] (13) "Public body" means the state, or any city, county, district, authority, or any
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other subdivision or public body of the state, their agencies, instrumentalities, or political
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subdivisions.
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[(13)] (14) (a) "Redevelopment" means the planning, development, replanning, redesign,
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clearance, reconstruction, or rehabilitation, or any combination of these, of all or part of a project
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area, and the provision of residential, commercial, industrial, public, or other structures or spaces
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that are appropriate or necessary to eliminate blight in the interest of the general welfare, including
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recreational and other facilities incidental or appurtenant to them.
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(b) "Redevelopment" includes:
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(i) the alteration, improvement, modernization, reconstruction, or rehabilitation, or any
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combination of these, of existing structures in a project area;
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(ii) provision for open space types of use, such as streets and other public grounds and
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space around buildings, and public or private buildings, structures and improvements, and
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improvements of public or private recreation areas and other public grounds; and
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(iii) the replanning or redesign or original development of undeveloped areas as to which
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either of the following conditions exist:
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(A) the areas are stagnant or improperly utilized because of defective or inadequate street
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layout, faulty lot layout in relation to size, shape, accessibility, or usefulness, or for other causes;
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or
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(B) the areas require replanning and land assembly for reclamation or development in the
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interest of the general welfare.
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[(14)] (15) "Redevelopment plan" means a plan developed by the agency and adopted by
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ordinance of the governing body of a community to guide and control redevelopment [and],
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economic development, and education housing development undertakings in a specific project
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area.
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[(15)] (16) "Redevelopment survey area" or "survey area" means an area of a community
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designated by resolution of the legislative body or the governing body of the agency for study by
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the agency to determine if blight exists if redevelopment is planned, and if a redevelopment [or],
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economic development, or education housing development project or projects within the area are
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feasible.
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[(16)] (17) "Taxes" include all levies on an ad valorem basis upon land, real property,
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personal property, or any other property, tangible or intangible.
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[(17)] (18) "Taxing agencies" mean the public entities, including the state, any city, county,
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city and county, any school district, special district, or other public corporation, which levy
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property taxes within the project area.
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[(18)] (19) "Tax increment" means that portion of the levied taxes each year in excess of
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the base tax amount which excess amount is to be paid into a special fund of an agency.
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Section 2.
Section
17A-2-1203
is amended to read:
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17A-2-1203. Creation of redevelopment agencies -- Governing body -- Powers --
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Contiguous communities.
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(1) Any community may, by ordinance, create a redevelopment agency and shall designate
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the legislative body of the community as the governing body of the agency.
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(2) Any agency may:
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(a) enter into contracts generally;
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(b) provide for redevelopment and economic development as provided in this part;
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(c) transact other business and exercise all other powers provided for in this part;
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(d) accept financial or other assistance from any public or private source for the agency's
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activities, powers, and duties, and expend any funds so received for any of the purposes of this
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part; and
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(e) borrow money or accept financial or other assistance from the state or the federal
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government for any of the purposes of this part and comply with any conditions of such loan or
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grant.
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(3) (a) By ordinance the legislative body of a community may authorize redevelopment
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[or], economic development, or education housing development activities in a project area within
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its territorial limits by another community if the project area is contiguous to the other community.
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(b) The ordinance shall designate which community shall undertake the redevelopment
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[or], economic development, or education housing development.
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(c) The community authorized to undertake the redevelopment [or], economic
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development, or education housing development may act in all respects as if the project area were
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within its territorial limits and its legislative body, agency, and planning commission shall have
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all the rights, powers, privileges, and tax increment with respect to the project area as if it were
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within the territorial limits of the community so authorized.
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(d) Any redevelopment plan for the project area shall be approved by ordinance enacted
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by the legislative body of the authorizing community.
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Section 3.
Section
17A-2-1204
is amended to read:
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17A-2-1204. Redevelopment survey areas.
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(1) Redevelopment survey areas shall be designated by resolution of the governing body
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of the agency.
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(2) Any person, a group, association, or corporation may in writing request the legislative
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body or the agency to designate a redevelopment survey area or areas for project study purposes
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and may submit with their request plans showing the proposed redevelopment [or], economic
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development, or education housing development of the areas or any part or parts thereof.
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(3) The resolution designating a redevelopment survey area or areas shall contain the
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following:
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(a) a finding that the area requires study to determine if a project or projects within the area
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are feasible; and
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(b) a description or a map of the boundaries of the area designated.
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Section 4.
Section
17A-2-1205
is amended to read:
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17A-2-1205. Preconditions for designating a project area.
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Before any area is designated for redevelopment [or], economic development, or education
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housing development, the community authorized to undertake the development shall:
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(1) have a planning commission; and
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(2) have a general plan as required by law.
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Section 5.
Section
17A-2-1206
is amended to read:
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17A-2-1206. Selection of project areas -- Blight hearing.
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(1) On the agency's own motion, at the direction of the legislative body, or upon the
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written petition of a majority of the owners in fee of any proposed redevelopment survey area,
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excluding publicly owned areas or areas dedicated to a public use, the agency may select one or
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more project areas comprising all or part of the proposed survey area and formulate a preliminary
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plan for the redevelopment [or], economic development, or education housing development of
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each project area in cooperation with the planning commission of the community.
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(2) (a) For redevelopment plans required to find blight under Subsection
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17A-2-1202
(3)(b), the agency shall conduct a public hearing for the purpose of making a finding
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of blight.
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(b) The property owner shall be given a reasonable opportunity to prepare for the blight
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hearing.
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(c) For purposes of this section "reasonable opportunity to prepare" shall include the
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opportunity to review the agency's evidence of blight, including any expert reports or expected
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expert testimony. Property owners shall be given at least 30 days to prepare for the hearing.
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(3) During the blight hearing required by this section, the agency shall:
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(a) present evidence of the elements of blight listed in Section
17A-2-1202
;
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(b) permit examination and cross-examination by the property owner or the property
243
owner's representative of the agency's evidence or experts; and
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(c) hear and consider evidence and expert testimony concerning the elements of blight
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presented by the property owners or their representative.
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(4) For redevelopment plans required to find blight under Subsection
17A-2-1202
(3)(b)
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for which a preliminary plan has been prepared after April 1, 1993, and for which any of the
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following have occurred after July 1, 1993: the completion of the agency blight study, and the good
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faith commencement of the hearing by the agency under Section
17A-2-1221
, the agency shall
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hold at least one public hearing within 45 days after designation of a project area to inform the
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public about the proposed project area and to allow public input into the agency deliberations on
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designating a project area.
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(5) The hearings required in Subsections (2) and (4) may be combined. If they are not
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combined the agency shall give the property owners notice of the blight study and the possibility
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that the area will be declared blighted in accordance with Subsection
17A-2-1222
(2)(e).
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Section 6.
Section
17A-2-1207
is amended to read:
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17A-2-1207. Contents of preliminary plan.
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Each preliminary plan shall:
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(1) describe the boundaries of the project area;
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(2) contain a general statement of the land uses, layout of principal streets, population
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densities, and building intensities and standards proposed as the basis for the redevelopment [or],
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economic development, or education housing development of the project area;
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(3) show how the purposes of this part would be attained by the redevelopment [or],
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economic development, or education housing development;
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(4) show that the proposed redevelopment [or], economic development, or education
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housing development conforms to the master or general community plan;
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(5) for redevelopment projects that conduct a blight study and are subject to the definition
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of blight under Subsection
17A-2-1202
(3)(b), contain a description of the way in which the
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redevelopment will reduce or eliminate any finding of blight in the project area;
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(6) for projects for which a preliminary plan has been prepared after April 1, 1993, and for
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which any of the following have occurred after July 1, 1993: the completion of the agency blight
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study, and the good faith commencement of the hearing by the agency under Section
17A-2-1221
,
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contain a description of the specific project or projects that are the object of the proposed
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redevelopment [or], economic development, or education housing development, if any; and
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(7) for projects for which a preliminary plan has been prepared after April 1, 1993, and for
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which any of the following have occurred after July 1, 1993: the completion of the agency blight
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study, and the good faith commencement of the hearing by the agency under Section
17A-2-1221
,
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identify the way in which private developers, if any, will be selected to undertake the
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redevelopment [or], economic development, or education housing development and identify any
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developers who are currently involved in the proposed redevelopment [or], economic development,
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or education housing development.
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Section 7.
Section
17A-2-1209
is amended to read:
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17A-2-1209. Use of eminent domain.
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(1) Except when acquiring property from an officer or member pursuant to Section
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17A-2-1239
, eminent domain may not be used by an agency in a project area where one of the
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purposes of the plan is economic development or education housing development and the project
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area has not been found to be blighted as defined in Sections
17A-2-1202
and
17A-2-1208
.
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(2) Before any agency may exercise the power of eminent domain, the agency shall:
289
(a) negotiate with the affected property owner in good faith and provide evidence of those
290
negotiations;
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(b) explain to the affected property owner and occupant in writing the eminent domain
292
power and the procedures and reasons for exercising it;
293
(c) explain to the affected property owner and occupant his right to just compensation and
294
how he may obtain it; and
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(d) explain to the affected property owner and occupant his right to receive aid to relocate
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as provided in Title 57, Chapter 12.
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Section 8.
Section
17A-2-1220
is amended to read:
298
17A-2-1220. Report to accompany plan.
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(1) Each project area redevelopment plan shall be accompanied by a report containing:
300
(a) the reasons for the selection of the project area;
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(b) a description of the physical, social, and economic conditions existing in the area;
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(c) a financial analysis of the proposed redevelopment describing the proposed method of
303
financing the redevelopment of the project area in sufficient detail so that the legislative body may
304
determine the economic feasibility of the plan. The report shall contain to the extent known, the
305
items specified for a "project area budget" in Section
17A-2-1202
and a description of any tax
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incentives offered private entities for facilities located in the project area;
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(d) a method or plan for the relocation of families and persons to be temporarily or
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permanently displaced from housing facilities, if any, in the project area;
309
(e) an analysis of the preliminary plan;
310
(f) whenever a finding of blight is required under this part for projects for which a
311
preliminary plan has been prepared after April 1, 1993, and for which any of the following have
312
occurred after July 1, 1993: the completion of the agency blight study, and the good faith
313
commencement of the hearing by the agency under Section
17A-2-1221
, an analysis in accordance
314
with Subsection (2) showing that the adoption of the plan is necessary and appropriate to reduce
315
or eliminate the blight, or if blight is not found, is beneficial under a benefit analysis to provide
316
economic development or education housing development; and
317
(g) the report and recommendations of the planning commission.
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(2) The analysis of necessary and appropriate in the case of blight, or the benefit analysis
319
in the event of economic development or education housing development shall consider the
320
following factors:
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(a) a description of the benefit of financial assistance or other public subsidy, if any,
322
proposed to be provided by the agency including:
323
(i) an evaluation of the reasonableness of economic development, education housing
324
development, or redevelopment costs;
325
(ii) efforts to maximize private investment;
326
(iii) rationale for use of tax increment financing including an analysis of whether the
327
proposed development might reasonably be expected to occur in the forseeable future solely
328
through private investment; and
329
(iv) an estimate of the total amount and length of time that tax increment financing will
330
be expended in undertaking economic development, education housing development, or
331
redevelopment;
332
(b) a description of the anticipated public benefit to be derived from the economic
333
development, education housing development, or redevelopment project including:
334
(i) the number of jobs or employment anticipated as a result of the economic development,
335
education housing development, or redevelopment project;
336
(ii) associated business and economic activity likely to be stimulated by the economic
337
development, education housing development, or redevelopment project; and
338
(iii) the beneficial influences upon the tax base of the community as a result of the
339
economic development, education housing development, or redevelopment project; and
340
(c) other factors approved by the agency.
341
(3) The agency shall make the report available to the general public at its offices during
342
normal business hours and shall publish a notice pursuant to Section
17A-2-1222
in a newspaper
343
of general circulation in the county that the report is available for inspection at its offices.
344
Section 9.
Section
17A-2-1222
is amended to read:
345
17A-2-1222. Notices of hearing required.
346
(1) (a) Notice of the public hearing on a project area redevelopment plan shall be given
347
by publication not less than once a week for four successive weeks in a newspaper of general
348
circulation published in the county in which the land lies.
349
(b) The published notice shall:
350
(i) describe specifically the boundaries of the proposed redevelopment, education housing
351
development, or economic development project area; and
352
(ii) state the day, hour, and place in which persons objecting to the proposed project area
353
redevelopment plan, denying the findings or existence of blight in the proposed project area, or
354
denying the regularity of any of the proceedings, may appear before the legislative body and show
355
cause why the proposed plan should not be adopted.
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(2) (a) For redevelopment plans for which a redevelopment plan has been adopted on or
357
after January 1, 1997, the agency shall publish notice of the hearing on the proposed project area
358
budget one or more times.
359
(b) The notice under Subsection (2)(a) shall be published at least seven days before the
360
public hearing date.
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(c) The agency shall place an advertisement for the public hearing on the proposed project
362
area budget in a newspaper that:
363
(i) is of the general circulation in the community; and
364
(ii) to the extent practicable, is of general interest and readership in the community and not
365
of limited subject matter.
366
(d) The notice shall not be placed in the portion of the newspaper where legal notices and
367
classified advertisements appear.
368
(e) The notice shall be a display advertisement and, except as provided in Subsection
369
17A-2-1247.5
(3)(c), shall include the following statement:
370
"NOTICE OF BUDGET HEARING FOR (NAME OF PROJECT AREA)
371
The (name of redevelopment agency) has requested $________ in property tax revenues
372
that will be generated by development within the (name of redevelopment project area) to fund a
373
portion of project costs within the (name of redevelopment project area). These property tax
374
revenues will be used for the following: (list major budget categories and amounts). These
375
property taxes will be taxes levied by the following governmental entities, and, assuming current
376
tax rates, the taxes collected and allocated to this project area from each taxing entity will be as
377
follows: (list governmental entities levying taxes and the amount of total budget that would be
378
based on the current tax levy of each governmental entity). All of the property taxes to be
379
allocated to the project area are taxes that will be generated only if the project area is developed.
380
All concerned citizens are invited to attend the project area budget hearing scheduled for
381
(date, time, and place of hearing). A copy of the (name of redevelopment project area) project area
382
budget is available at the offices of (name of redevelopment agency and office address)."
383
(f) Other information may be provided in the notice including public purpose and future
384
taxing benefits.
385
(3) The agency shall notify the last-known assessee of each parcel of land in the project
386
area of any public hearing required by this part at least 30 days before the date of the public hearing
387
to the last-known address of the property owner as shown on the last equalized assessment roll.
388
The notice to the property owner shall:
389
(a) be mailed by certified mail for projects for which a preliminary plan has been adopted
390
after July 1, 1993;
391
(b) include the summary of property owners rights in accordance with Section
392
17A-2-1211
, for projects for which a preliminary plan has been prepared after April 1, 1993, and
393
for which any of the following have occurred after July 1, 1993: the completion of the agency
394
blight study, and the good faith commencement of the hearing by the agency under Section
395
17A-2-1221
;
396
(c) describe specifically the boundaries of the proposed project area;
397
(d) state the day, hour, and place in which persons objecting to the proposed project area
398
or redevelopment plan, denying the existence of blight in the proposed redevelopment project area,
399
if applicable, or denying the regularity of any of the proceedings, may appear before the legislative
400
body and show cause why the proposed project area should not be designated as a project area or
401
why the proposed plan should not be adopted; and
402
(e) for plans required to make a finding of blight under Subsection
17A-2-1202
(3)(b), and
403
requiring the use of eminent domain, for the public hearings required by Section
17A-2-1206
, the
404
agency shall include in the notice to property owners a statement that:
405
(i) the area is being proposed for possible redevelopment;
406
(ii) the area may be declared blighted; and
407
(iii) the property owner will be notified of each additional public hearing held by the
408
agency on the project area prior to the adoption of the plan.
409
(4) (a) For projects for which a preliminary plan has been prepared after April 1, 1993, and
410
for which any of the following have occurred after July 1, 1993: the completion of the agency
411
blight study, and the good faith commencement of the hearing by the agency under Section
412
17A-2-1221
, the agency shall notify the last known assessee of each parcel of land contiguous to
413
the project area of each public hearing at least 30 days before the date of the public hearing to the
414
last-known address of the property owner as shown on the last equalized assessment roll by
415
certified mail.
416
(b) For purposes of this part, "contiguous property" means property with a boundary that
417
touches the boundaries of the project area, or with a boundary within 300 feet of the project area's
418
boundaries.
419
(5) Not less than 30 days prior to the date set for each hearing required by this part, the
420
agency shall give notice by mail to the State Tax Commission, county assessor, county auditor, any
421
taxing agency committee required under Section
17A-2-1247.5
, and the governing body of each
422
of the taxing entities of which taxable property is included in the project area if a taxing agency
423
committee is not yet formed under Section
17A-2-1247.5
. The notice shall include:
424
(a) a description of the boundaries of the proposed project area;
425
(b) a map showing the boundaries of the proposed project area;
426
(c) a statement that a plan for the redevelopment, education housing development, or
427
economic development of the proposed project area is being prepared; and
428
(d) a statement that if the redevelopment plan is adopted and, for projects for which a
429
preliminary plan has been prepared after April 1, 1993, and for which any of the following have
430
occurred after July 1, 1993: the completion of the agency blight study, and the good faith
431
commencement of the hearing by the agency under Section
17A-2-1221
, if the agency obtains the
432
majority consent of the taxing agency committee to the project area budget, and if the plan
433
provides for a division of tax revenues, then property taxes resulting from increases in valuation
434
above the taxable value as shown on the last equalized assessment roll could be allocated to the
435
agency for redevelopment, education housing development, or economic development purposes,
436
rather than being paid into the treasury of the taxing agency;
437
(e) for projects for which a preliminary plan has been prepared after April 1, 1993, and for
438
which any of the following have occurred after July 1, 1993: the completion of the agency blight
439
study, and the good faith commencement of the hearing by the agency under Section
17A-2-1221
,
440
state the day, hour, and place for the public hearing at which the approval of the designation of a
441
project area or the redevelopment plan will be considered; and
442
(f) invite each taxing agency to submit comments to the redevelopment agency concerning
443
the subject matter of the hearing prior to the date of the hearing.
444
Section 10.
Section
17A-2-1225
is amended to read:
445
17A-2-1225. Adoption, rejection, or modification of plan -- Plan submitted to voters
446
-- When rejection required -- Petition for alternative plan.
447
(1) Once the hearings have been held, the legislative body may proceed to adopt, reject,
448
or modify the project area redevelopment plan. The project area redevelopment plan may not be
449
modified so as to add any real property to the project area without the legislative body holding a
450
new hearing to consider the matter, notice of which shall be given in the same manner as provided
451
in Section
17A-2-1222
.
452
(2) (a) If the owners of 40% of the area of the property included within the project area
453
proposed in the redevelopment plan, excluding property owned by public agencies or dedicated
454
to public use, make objections in writing prior to or at the hearing and the objections are not
455
withdrawn at or prior to the hearing, the plan may not be adopted until the proposition to so adopt
456
the plan has been approved by a majority of the registered voters of the community voting thereon
457
at an election called for this purpose.
458
(b) This election may be held on the same day and with the same election officials as any
459
primary or general election held in the community and shall be held as nearly as practicable in
460
conformity with the general election laws of the state.
461
(c) Upon the approval by the voters as set forth in Subsection (2)(a), the project area
462
redevelopment plan shall be deemed adopted and the legislative body shall confirm the adoption
463
by ordinance.
464
(3) If the owners of two-thirds of the area of the property included within any project area
465
proposed in the redevelopment plan, excluding property owned by public agencies or dedicated
466
to public use, make objections in writing at or prior to the hearing, the legislative body may not
467
adopt the project, and the proposed project may not be reconsidered by the legislative body for a
468
period of three years.
469
(4) (a) Projects for which a preliminary plan has been prepared after April 1, 1993, and for
470
which any of the following have occurred after July 1, 1993: the completion of the agency blight
471
study, and the good faith commencement of the hearing by the agency under Section
17A-2-1221
,
472
must adopt a plan within one year after a project area is designated under Section
17A-2-1206
for
473
a redevelopment plan where the purpose is the elimination of blight, and within one year after a
474
preliminary plan is prepared for a redevelopment plan where the purpose is economic development
475
or education housing development.
476
(b) If the plan will be submitted to an election for approval by the registered voters of a
477
community, the time limit for the plan adoption shall be increased by the time between the close
478
of the public hearing held pursuant to Section
17A-2-1221
and the date of the next general election
479
within the community.
480
(5) A majority of the owners of the area of the property included within the project area,
481
excluding property owned by public agencies or dedicated to public use, may file a written petition
482
requesting an alternative preliminary plan be formulated pursuant to Section
17A-2-1211
.
483
Section 11.
Section
17A-2-1230
is amended to read:
484
17A-2-1230. Powers of public body aiding and cooperating in redevelopment
485
projects -- Notice requirement.
486
For the purpose of aiding and cooperating in the planning, undertaking, construction, or
487
operation of redevelopment, education housing development, and economic development projects
488
located within the area in which it is authorized to act, any public body, after 15 days' public
489
notice, may:
490
(1) dedicate, sell, convey, grant, or otherwise dispose or lease any of its property to a
491
redevelopment agency;
492
(2) cause parks, playgrounds, recreational, community, educational, water, sewer or
493
drainage facilities, or any other works which it is otherwise empowered to undertake, to be
494
furnished adjacent to or in connection with redevelopment, education housing development, or
495
economic development projects;
496
(3) furnish, dedicate, close, vacate, pave, install, grade, regrade, plan, or replan streets,
497
roads, roadways, alleys, sidewalks, or other places which it is otherwise empowered to undertake;
498
(4) plan or replan, zone or rezone any part of the area and make any legal exceptions from
499
building regulations and ordinances;
500
(5) enter into agreements with the federal government, the state, an agency, or any other
501
public body respecting action to be taken pursuant to any of the powers granted by this part or any
502
other law, which agreements may extend over any period, notwithstanding any law to the contrary;
503
(6) purchase or legally invest in any of the bonds of an agency and exercise all of the rights
504
of any holder of such bonds;
505
(7) lend, grant, or contribute funds to an agency for a redevelopment, education housing
506
development, or economic development project;
507
(8) purchase, buy, sell, lease, or otherwise acquire or dispose of land in a project area from
508
an agency for redevelopment, education housing development, or economic development in
509
accordance with the plan, and in connection with it, to become obligated to the extent that it is
510
authorized and funds have been made available to make the redevelopment improvements or
511
structures required; and
512
(9) do any and all things necessary to aid or cooperate in the planning or carrying out of
513
a redevelopment, education housing development, or economic development project.
514
Section 12.
Section
17A-2-1236
is amended to read:
515
17A-2-1236. Actions on validity or enforceability of bonds -- Time for bringing
516
action.
517
(1) In any suit, action, or proceeding involving the validity or enforceability of any bond
518
issued under this part or the security for them, any such bond reciting in substance that it has been
519
issued by the agency in connection with an area redevelopment, education housing development,
520
or economic development project shall be conclusively deemed to have been issued for that
521
purpose and the project shall be conclusively deemed to have been planned, located, and carried
522
out in accordance with the provisions of this part.
523
(2) For a period of 30 days after the publication of the resolution authorizing the bonds,
524
or a notice of bonds to be issued by the agency containing those items described in Subsection
525
11-14-21
(3) in a newspaper having general circulation in the area of operation, any person may
526
contest the legality of the resolution authorizing any bonds or any provisions made for the security
527
and payment of the bonds. After the 30-day period no one has any cause of action to contest the
528
regularity, formality, or legality of the bonds for any cause whatsoever.
529
Section 13.
Section
17A-2-1247.5
is amended to read:
530
17A-2-1247.5. Tax increment financing -- Project area budget approval -- Payment
531
of additional tax increment.
532
(1) This section applies to projects for which a preliminary plan has been adopted on or
533
after July 1, 1993.
534
(2) (a) (i) A taxing agency committee shall be created for each redevelopment, education
535
housing development, or economic development project. The committee membership shall be
536
selected as follows:
537
[(i)] (A) unless a school district board votes not to appoint representatives under Subsection
538
(2)(a)(ii)(A), two representatives appointed by the school district in the project area;
539
[(ii)] (B) two representatives appointed by resolution of the county commission or county
540
council for the county in which the project area is located;
541
[(iii)] (C) two representatives appointed by resolution of the city or town's legislative body
542
in which the project area is located if the project is located within a city or town;
543
[(iv)] (D) unless a school district board votes not to appoint representatives under
544
Subsection (2)(a)(ii)(A), a representative approved by the State School Board; and
545
[(v)] (E) one representative who shall represent all of the remaining governing bodies of
546
the other local taxing agencies that levy taxes upon the property within the proposed project area.
547
The representative shall be selected by resolution of each of the governing bodies of those taxing
548
agencies within 30 days after the notice provided in Subsection
17A-2-1256
(3).
549
(ii) (A) A school district that levies a tax on property located within a project area may
550
choose not to appoint representatives to the taxing agency committee under Subsection (2)(a)(i)(A)
551
if:
552
(I) the project area is established under an education housing development project; and
553
(II) the project area budget of the project area under Subsection (2)(a)(ii)(A)(I) is adopted
554
on or after May 1, 2000.
555
(B) If a school district board votes not to appoint representatives to the taxing agency
556
committee under Subsection (2)(a)(ii)(A), the State School Board may not appoint a representative
557
to the taxing agency committee.
558
(b) (i) If the project is located within a city or town, a quorum of a taxing agency
559
committee consists of:
560
(A) if a school district board votes not to appoint representatives to the taxing agency
561
committee under Subsection (2)(a)(ii)(A), three members; or
562
(B) in all other cases, five members.
563
(ii) If the project is not located within a city or town, a quorum consists of:
564
(A) if a school district board votes not to appoint representatives to the taxing agency
565
committee under Subsection (2)(a)(ii)(A), two members; or
566
(B) in all other cases, four members.
567
(c) A taxing agency committee formed in accordance with this section has the authority
568
to:
569
(i) (A) represent all taxing entities in a project area, except a school district whose board
570
has voted under Subsection (2)(a)(ii)(A) not to appoint representatives to the taxing agency
571
committee; and
572
(B) cast votes that will be binding on the governing boards of all taxing entities in a project
573
area that the taxing agency committee represents under Subsection (2)(c)(i)(A);
574
(ii) negotiate with the agency concerning the redevelopment plan;
575
(iii) approve or disapprove project area budgets under Subsection (3); and
576
(iv) approve an exception to the limits on the value and size of project areas imposed by
577
Section
17A-2-1210
, or the time and amount of tax increment financing under this section.
578
(3) (a)(i) If the project area budget does not allocate 20% of the tax increment for housing
579
as provided in Subsection
17A-2-1264
(2)(a):
580
(A) an agency may not collect any tax increment for a project area until after the agency
581
obtains the majority consent of a quorum of the taxing agency committee for the project area
582
budget; and
583
(B) a project area budget adopted under Subsection (3)(a)(i)(A) may be amended if the
584
agency obtains the majority consent of a quorum of the taxing agency committee.
585
(ii) If the project area budget allocates 20% of the tax increment for housing as provided
586
in Subsection
17A-2-1264
(2)(a):
587
(A) an agency may not collect tax increment from all or part of a project area until after:
588
(I) the Olene Walker Housing Trust Fund Board, established under Title 9, Chapter 4, Part
589
7, Olene Walker Housing Trust Fund, has certified the project area budget as complying with the
590
requirements of Section
17A-2-1264
; and
591
(II) the agency's governing body has approved and adopted the project area budget by a
592
two-thirds vote; and
593
(B) a project area budget adopted under Subsection (3)(a)(ii)(A) may be amended if:
594
(I) the Olene Walker Housing Trust Fund Board, established under Title 9, Chapter 4, Part
595
7, Olene Walker Housing Trust Fund, certifies the amendment as complying with the requirements
596
of Section
17A-2-1264
; and
597
(II) the agency's governing body approves and adopts the amendment by a two-thirds vote.
598
(b)Within 30 days after the approval and adoption of a project area budget, each agency
599
shall file a copy of the budget with the county auditor, the State Tax Commission, the state auditor,
600
and each property taxing entity affected by the agency's collection of tax increment under the
601
project area budget.
602
(c) (i) Beginning on January 1, 1997, before an amendment to a project area budget is
603
approved, the agency shall advertise and hold one public hearing on the proposed change in the
604
project area budget.
605
(ii) The public hearing under Subsection (3)(c)(i) shall be conducted according to the
606
procedures and requirements of Subsection
17A-2-1222
(2), except that if the amended budget
607
allocates a greater proportion of tax increment to a project area than was allocated to the project
608
area under the previous budget, the advertisement shall state the percentage allocated under the
609
previous budget and the percentage allocated under the amended budget.
610
(d) If an amendment is not approved, the agency shall continue to operate under the
611
previously approved, unamended project area budget.
612
(4) (a) [An] Except as provided in Subsections (6) and (8), an agency may collect tax
613
increment from all or a part of a project area. The tax increment shall be paid to the agency in the
614
same manner and at the same time as payments of taxes to other taxing agencies to pay the
615
principal of and interest on loans, moneys advanced to, or indebtedness, whether funded, refunded,
616
assumed, or otherwise, to finance or refinance, in whole or in part, the redevelopment, education
617
housing development, or economic development project and the housing projects and programs
618
under Sections
17A-2-1263
and
17A-2-1264
.
619
(b) (i) An agency may elect to be paid:
620
(A) if 20% of the project area budget is not allocated for housing as provided in Subsection
621
17A-2-1264
(2)(a):
622
(I) 100% of annual tax increment for 12 years; or
623
(II) 75% of annual tax increment for 20 years; or
624
(B) if 20% of the project area budget is allocated for housing as provided in Subsection
625
17A-2-1264
(2)(a):
626
(I) 100% of annual tax increment for 15 years; or
627
(II) 75% of annual tax increment for 24 years.
628
(ii) Tax increment paid to an agency under this Subsection (4)(b) shall be paid for the
629
applicable length of time beginning the first tax year the agency accepts tax increment from a
630
project area.
631
(c) An agency may receive a greater percentage of tax increment or receive tax increment
632
for a longer period of time than that specified in Subsection (4)(b) if the agency obtains the
633
majority consent of the taxing agency committee.
634
(5) (a) The redevelopment plan shall provide that the portion of the taxes, if any, due to
635
an increase in the tax rate by a taxing agency after the date the project area budget is approved by
636
the taxing agency committee may not be allocated to and when collected paid into a special fund
637
of the redevelopment agency according to the provisions of Subsection (4) unless the taxing
638
agency committee approves the inclusion of the increase in the tax rate at the time the project area
639
budget is approved. If approval of the inclusion of the increase in the tax rate is not obtained, the
640
portion of the taxes attributable to the increase in the rate shall be distributed by the county to the
641
taxing agency imposing the tax rate increase in the same manner as other property taxes.
642
(b) The amount of the tax rate to be used in determining tax increment shall be increased
643
or decreased by the amount of an increase or decrease as a result of:
644
(i) a statute enacted by the Legislature, a judicial decision, or an order from the State Tax
645
Commission to a county to adjust or factor its assessment rate under Subsection
59-2-704
(2);
646
(ii) a change in exemption provided in Utah Constitution Article XIII, Section 2, or Section
647
59-2-103
;
648
(iii) an increase or decrease in the percentage of fair market value, as defined under
649
Section
59-2-102
; or
650
(iv) a decrease in the certified tax rate under Subsection
59-2-924
(2)(c) or (2)(d)(i).
651
(c) (i) Notwithstanding the increase or decrease resulting from Subsection (5)(b), the
652
amount of money allocated to, and when collected paid to the agency each year for payment of
653
bonds or other indebtedness may not be less than would have been allocated to and when collected
654
paid to the agency each year if there had been no increase or decrease under Subsection (5)(b).
655
(ii) For a decrease resulting from Subsection (5)(b)(iv), the taxable value for the base year
656
under Subsection
17A-2-1202
(2) or
17A-2-1247
(2)(a), as the case may be, shall be reduced for any
657
year to the extent necessary, including below zero, to provide an agency with approximately the
658
same amount of money the agency would have received without a reduction in the county's
659
certified tax rate if:
660
(A) in that year there is a decrease in the certified tax rate under Subsection
59-2-924
(2)(c)
661
or (2)(d)(i);
662
(B) the amount of the decrease is more than 20% of the county's certified tax rate of the
663
previous year; and
664
(C) the decrease results in a reduction of the amount to be paid to the agency under Section
665
17A-2-1247
or
17A-2-1247.5
.
666
(6) (a) For redevelopment plans first adopted before May 4, 1993, beginning January 1,
667
1994, all of the taxes levied and collected upon the taxable property in the redevelopment project
668
under Section
59-2-906.1
which are not pledged to support bond indebtedness and other
669
contractual obligations are exempt from the provisions of Subsection (4).
670
(b) For redevelopment plans first adopted after May 3, 1993, beginning January 1, 1994,
671
all of the taxes levied and collected upon the taxable property in the redevelopment project under
672
Section
59-2-906.1
are exempt from the provisions of Subsection (4).
673
(7) (a) In addition to the amounts and periods that an agency may elect to be paid tax
674
increment under Subsection (4)(b), an agency may elect to be paid 100% of annual tax increment
675
for an additional period, as provided in Subsection (7)(b), beyond those periods provided under
676
Subsection (4)(b), without the approval of the taxing agency committee, if the tax increment
677
funding for the additional period is used:
678
(i) for an agency in a city in which is located all or a portion of an interchange on I-15 or
679
that would directly benefit from an interchange on I-15, to pay some or all of the cost of the
680
installation, construction, or reconstruction of:
681
(A) an interchange on I-15; or
682
(B) frontage and other roads connecting to the interchange, as determined by the
683
Department of Transportation created under Section
72-1-201
and the Transportation Commission
684
created under Section
72-1-301
; or
685
(ii) for an agency in a city of the first class, to pay some or all of the cost of the land for
686
and installation and construction of a recreational facility, as defined in Subsection
59-12-702
(3),
687
or a cultural facility, including parking and infrastructure improvements related to the recreational
688
or cultural facility.
689
(b) The additional period for which an agency may be paid 100% of annual tax increment
690
under Subsection (7)(a) is an additional:
691
(i) 13 years, for an agency that initially elected to be paid under Subsection (4)(b)(i)(A)(I);
692
(ii) five years, for an agency that initially elected to be paid under Subsection
693
(4)(b)(i)(A)(II);
694
(iii) ten years, for an agency that initially elected to be paid under Subsection
695
(4)(b)(i)(B)(I); and
696
(iv) one year, for an agency that initially elected to be paid under Subsection
697
(4)(b)(i)(B)(II).
698
(c) This Subsection (7) applies only to an agency established by a city in which:
699
(i) for an agency in a city in which is located all or a portion of an interchange on I-15 or
700
that would directly benefit from an interchange on I-15, the installation, construction, or
701
reconstruction of an interchange on I-15 or frontage or other roads connecting to the interchange
702
has begun on or before June 30, 2000; and
703
(ii) for an agency in a city of the first class, the installation or construction of a recreational
704
facility, as defined in Subsection
59-12-702
(3), or a cultural facility has begun on or before June
705
30, 2000.
706
(d) Notwithstanding any other provision of this Subsection (7), a school district may not
707
receive less tax increment because of application of the other provisions of this Subsection (7) than
708
it would have received without those provisions.
709
(8) If a school district board votes not to appoint representatives to the taxing agency
710
committee under Subsection (2)(a)(ii)(A), all of the taxes levied and collected upon taxable
711
property in the redevelopment project by the school district are exempt from Subsection (4) and
712
the agency may not collect tax increment from taxes levied by the school district in the project
713
area.
714
Section 14.
Section
17A-2-1263
is amended to read:
715
17A-2-1263. Housing funds.
716
(1) Tax increment paid to an agency under Section
17A-2-1247
or
17A-2-1247.5
from one
717
project area may be used to pay all or part of the value of the land for and the cost of installation,
718
construction, and rehabilitation of any building, facility, structure, or other housing improvement,
719
including infrastructure improvements related to housing located in one or more project areas.
720
(2) Notwithstanding any provisions of this part, a maximum of 20% of tax increment
721
under Sections
17A-2-1247
and
17A-2-1247.5
may be used by an agency outside of project areas
722
for the purpose of replacing housing units lost by redevelopment, education housing development,
723
and economic development, or increasing, improving, and preserving the community's supply of
724
affordable housing generally.
725
(3) The funds allocated under this section shall be held by the agency in a separate account
726
of the special fund of the redevelopment agency designated as the housing fund until used. The
727
housing fund, together with any interest earned by the fund, and any payments or repayments made
728
to the agency for loans, advances, or grants of any kind from the fund shall accrue to and be
729
deposited in the housing fund to be used to increase, improve, and preserve the supply of housing
730
within project areas and affordable housing within the boundaries of the community or used to
731
effectuate any purposes of redevelopment, education housing development, or economic
732
development in the project area from which the funds originated.
733
(4) Expenditures or obligations incurred by the agency under this section shall constitute
734
an indebtedness incurred by an agency.
735
(5) An agency may lend, grant, or contribute funds from the housing fund to a person,
736
public body, housing authority, private entity or business, or nonprofit corporation for housing
737
purposes as defined in this section.
738
(6) For purposes of this section, "affordable housing" means housing to be owned or
739
occupied by persons and families of low or moderate income as determined by resolution of the
740
agency.
741
Section 15.
Section
17A-2-1264
is amended to read:
742
17A-2-1264. Affordable housing funds under redevelopment plans adopted on or
743
after July 1, 1998.
744
(1) As used in this section:
745
(a) "Affordable housing" has the meaning as defined under Subsection
17A-2-1263
(6).
746
(b) "Annual income" has the meaning as defined under regulations of the U.S. Department
747
of Housing and Urban Development, 24 CFR, Part 813, as amended or as superseded by
748
replacement regulations.
749
(c) "Board" means the Olene Walker Housing Trust Fund Board, established under Title
750
9, Chapter 4, Part 7, Olene Walker Housing Trust Fund.
751
(d) "Fair share ratio" means the ratio derived by:
752
(i) for a city or town, comparing the percentage of all housing units within the city or town
753
that are publicly subsidized income targeted housing units to the percentage of all housing units
754
within the whole county that are publicly subsidized income targeted housing units; or
755
(ii) for the unincorporated part of a county, comparing the percentage of all housing units
756
within the unincorporated county that are publicly subsidized income targeted housing units to the
757
percentage of all housing units within the whole county that are publicly subsidized income
758
targeted housing units.
759
(e) "Family" has the meaning as defined under regulations of the U.S. Department of
760
Housing and Urban Development, 24 CFR, Part 813, as amended or as superseded by replacement
761
regulations.
762
(f) "Housing funds" means the funds allocated in the project area budget under Subsection
763
(2)(a) for the purposes provided in Subsection (3).
764
(g) "Income targeted housing" means housing to be owned or occupied by a family whose
765
annual income is at or below 80% of the median annual income for the county in which the
766
housing is located.
767
(h) "Unincorporated" means not within a city or town.
768
(2) (a) A project area budget for a redevelopment plan that is adopted on or after July 1,
769
1998, may allocate 20% of the tax increment funds payable to the agency over the life of the
770
redevelopment plan for use as provided in Subsection (3).
771
(b) Before an agency may adopt a project area budget that allocates 20% of tax increment
772
funds under Subsection (2)(a), the board shall certify the project area budget to be in compliance
773
with the requirements of this section.
774
(c) (i) If an agency fails to provide housing funds in accordance with the certified project
775
area budget, the board may bring legal action to compel the agency to provide the housing funds.
776
(ii) In an action under Subsection (2)(c)(i), the court:
777
(A) shall award the board a reasonable attorney's fee, unless the court finds that the action
778
was frivolous; and
779
(B) may not award the agency its attorney's fees, unless the court finds that the action was
780
frivolous.
781
(3) (a) Each agency shall use all housing funds allocated under Subsection (2)(a) to:
782
(i) pay part or all of the cost of land or construction of income targeted housing within the
783
community that created the agency, if practicable in a mixed income development or area;
784
(ii) pay part or all of the cost of rehabilitation of income targeted housing within the
785
community that created the agency;
786
(iii) pay part or all of the cost of land or installation, construction, or rehabilitation of any
787
building, facility, structure, or other housing improvement, including infrastructure improvements,
788
related to housing located in a redevelopment project area where blight has been found to exist;
789
(iv) replace housing units lost as a result of the redevelopment, education housing, or
790
economic development;
791
(v) make payments on or establish a reserve fund for bonds:
792
(A) issued by the agency, the community, or the housing authority that provides income
793
targeted housing within the community; and
794
(B) all or part of the proceeds of which are used within the community for the purposes
795
stated in Subsections (3)(a)(i), (ii), (iii), or (iv); or
796
(vi) if the community's fair share ratio at the time of the first adoption of the project area
797
budget is at least 1.1 to 1.0, make payments on bonds:
798
(A) that were previously issued by the agency, the community, or the housing authority
799
that provides income targeted housing within the community; and
800
(B) all or part of the proceeds of which were used within the community for the purposes
801
stated in Subsections (3)(a)(i), (ii), (iii), or (iv).
802
(b) As an alternative to the requirements of Subsection (3)(a), an agency may pay all
803
housing funds to:
804
(i) the community for use as provided under Subsection (3)(a);
805
(ii) the housing authority that provides income targeted housing within the community for
806
use in providing income targeted housing within the community; or
807
(iii) the Olene Walker Housing Trust Fund, established under Title 9, Chapter 4, Part 7,
808
Olene Walker Housing Trust Fund, for use in providing income targeted housing within the
809
community.
810
(4) The agency or community shall hold the housing funds, together with all interest
811
earned by the housing funds and all payments or repayments for loans, advances, or grants from
812
the housing funds, in a separately designated account until the funds are used pursuant to this
813
section.
814
(5) In using housing funds under Subsection (3)(a), an agency may lend, grant, or
815
contribute housing funds to a person, public body, housing authority, private entity or business,
816
or nonprofit organization for use as provided in Subsection (3)(a).
817
(6) An agency may:
818
(a) issue bonds from time to time to finance a housing undertaking under this section,
819
including the payment of principal and interest upon advances for surveys and plans or preliminary
820
loans; and
821
(b) issue refunding bonds for the payment or retirement of bonds under Subsection (6)(a)
822
previously issued by the agency.
823
(7) Expenditures or obligations incurred by an agency under this section shall constitute
824
an indebtedness incurred by the agency.
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