Housing & Transit Reinvestment Zone (HTRZ)

Housing & Transit Reinvestment Zone (HTRZ) is sponsored by Utah Governor's Office of Economic Opportunity. Enables a portion of incremental tax revenue growth to be captured over a period of time to support development costs, including housing affordability and increased density.

Housing and Transit Reinvestment Zones - Governor's Office of Economic Development Housing and Transit Reinvestment Zones (HTRZ) Expires: December 31, 2027 In the 2021 General Legislative Session, the Housing and Transit Reinvestment Zone Act (SB 217) was adopted and allows for a municipality or a public transit county to propose a Housing and Transit Reinvestment Zone, or HTRZ, around strategic transit stations along the Wasatch Front.

An HTRZ is a strategic tool that enables a portion of incremental tax revenue growth to be captured over a period of time to support costs of development. The bill has been amended in subsequent years to expand eligibility to different types of transit, limit the number of allowable HTRZs, change committee membership, and provide additional clarification.

To request access to the HTRZ application portal or for additional information on HTRZ, interested municipalities or public transit counties should contact the office at [email protected] . Updates from the 2026 Legislative Session H. B.

507: State Coordination of Regional and Local Economic Development Projects Amendments Sunset Provision: Establishes December 31, 2027, as the termination date for HTRZs Radius Restrictions: Clarifies requirements for zones that incorporate two to three transit stations Extraterritorial Affordable Housing: Authorizes the use of HTRZ funds for affordable housing located outside the HTRZ but within city boundaries, provided the project benefits the HTRZ.

Qualifying housing must: Maintain a density of at least six units per acre Be owner-occupied for at least 25 years S. B. 39: Investment Zones Amendments Administrative Transfer: Relocates HTRZ provisions to the Housing Investment and Opportunity Act (63N Chapter 23) under the Governor's Office of Economic Development (GOED).

Standardization: Establishes consistent definitions for "base taxable value" and "incremental value" across all Tax Increment Financing (TIF) projects STATS Program: Creates the Statewide Tax Administration and Technology Solutions (STATS) program. Mandates that any TIF entity intending to utilize tax increments must complete pre-increment disclosure and reporting.

Requires TIF recipients to submit ongoing, annual tax increment receipt reports to the STATS program. ▸ Purpose and Key Objectives of HTRZ Housing and Transit Reinvestment Zones (HTRZs) are designed as an all-hands-on-deck approach to help Utah tackle its housing affordability crisis by facilitating mixed-use, multi-family, and affordable housing within a given radius of light rail, bus rapid transit, or commuter rail stations.

The HTRZ Act establishes the following objectives: Increase utilization of public transportation Amplify affordable housing availability Promote and encourage development of owner-occupied housing Improve efficiencies in parking and transportation, including walkability near public transit Overcome development impediments and market conditions that render a development cost prohibitive absent the proposal and incentives Help conserve water through efficient land use Improve air quality by reducing fuel consumption and the number of vehicle trips Encourage transformative mixed-use development and investment in transportation and public transit infrastructure in strategic areas Implement strategic land use and municipal planning in major transit investment corridors Increase access to employment and educational opportunities Increase access to childcare ▸ Requirements for an HTRZ TABLE 1: HTRZ REQUIREMENTS AND SPECIFICATIONS % affordable housing required on developable acres % affordable housing at 80% of county gross median income % affordable housing at 60% of county gross median income Residential % of developable land Mixed-use development required At least 25% of DUs >1 bdrm required Maximum acres (noncontiguous)** Property tax Increment capture 80%, 25 yrs max per parcel, 45-yr period 80%, 15 yrs max per parcel, 30-yr period 60%, 15 yrs max per parcel, 30-yr period Sales tax increment capture Maximum number of trigger dates for property tax increment collection periods *No affordable housing requirement if municipality or public transit county meets HUD requirements of < 60% AMI **A municipality of the first or second class proposing an HTRZ with an overlapping opportunity zone and commuter rail station may have a ½-mile radius.

***Exceptions apply for two or three light rail or BRT stations located within a city of the third or fourth class if the stations are within a 0. 95-mile distance on the same light rail line or dedicated offset bus lane. For two light rail or BRT stations, the HTRZ cannot exceed 100 noncontiguous acres and may not exceed ¼ mile from any point on the line.

For three light rail or BRT stations, the HTRZ cannot exceed 250 noncontiguous acres and may not exceed ¼ mile from any point on the line. With three stations, the HTRZ area shall be counted as two areas. ▸ HTRZ Proposal Timeline The office has been tasked with administering the HTRZ program, conducting the independent “gap analysis”, and managing the HTRZ Committee.

Below is a timeline for the HTRZ proposal process: ▸ HTRZ Committee An HTRZ Committee is formed after the gap analysis is received by the office. The committee consists of representatives from interested parties, including taxing entities. The list of committee members is outlined in 63N-23-102(2) .

The composition of each HTRZ Committee will vary depending on the taxing entities associated with the proposed HTRZ. ▸ Reporting - Before Submission and After Approval PRE-INCREMENT DISCLOSURE AND REPORTING Beginning July 1, 2026, an agency intending to use tax increment is required to follow the pre-increment disclosure and reporting requirements as outlined in Utah Code Title 59 Chapter 36 Part 2.

ANNUAL TAX INCREMENT FINANCING REPORTING (AFTER APPROVAL): For a newly created HTRZ: To comply with reporting requirements for a newly created Housing and Transit Reinvestment Zone (HTRZ), the TIF entity (either the municipality or public transit county) must submit the following items to the STATS program by January 1 of the year following the HTRZ's creation: All applicable interlocal agreements A map of each project area Ongoing TIF Reporting Requirement: Beginning January 1, 2028, and every year thereafter, a TIF entity (either the municipality or public transit county) must submit a summary of the progress of each TIF project area to the STATS program as outlined in statute.

▸ Past HTRZ Meetings Summit County Kimball Junction HTRZ Committee Meeting Place: Governor&rsquo;s Office of Economic Development Sandy Cairns HTRZ Committee Meeting Place: WCF Insurance Offices SL Central HTRZ Follow-up Committee Meeting SL Central HTRZ Committee Meeting Place: Governor&rsquo;s Office of Economic Development Farmington HTRZ Follow-up Committee Meeting Farmington HTRZ Committee Meeting Place: Governor&rsquo;s Office of Economic Development South Salt Lake HTRZ Committee Meeting Lehi HTRZ Committee Meeting Place: Thanksgiving Point, Visa Building, Fifth Floor Conference Room Salt Lake City (200 W 900 S) HTRZ Committee Meeting Place: Utah State Capitol, Capitol Board Room Summit County HTRZ Committee Meeting Place: East Senate Building, Aspen Conference Room South Jordan HTRZ Committee Meeting Vineyard HTRZ Committee Meeting Place: Governor's Office of Economic Development Sandy HTRZ Committee Meeting Place: Governor's Office of Economic Development ▸ Relevant HTRZ Links and References S.

B. 217 Housing and Transit Reinvestment Zone Act 2021 S. B.

140 Housing and Transit Reinvestment Zone Amendments 2022 S. B. 84 Housing and Transit Reinvestment Zone Amendments 2023 S.

B. 208 Housing and Transit Reinvestment Zone Amendments 2024 S. B.

26 Housing and Transit Reinvestment Zone Amendments 2025 HTRZ reporting requirements - Utah Code 59-36 HTRZ Transit Station Buffers, CDA Tax Entities, & Parcels Park City/Salt Lake City Bus Rapid Transit Frequently Asked Questions ▸ What changes were made to HTRZ in the 2025 legislative session? In the 2025 legislative session, the Legislature passed S. B.

26 Housing and Transit Reinvestment Zone Amendments 2025 .

This bill provides changes and additional clarity to the HTRZ process, including: Requires that an HTRZ proposal demonstrate, not just promote, how objectives will be accomplished Requires at least 25% of dwelling units in an HTRZ to have more than one bedroom Enables an expanded radius (½ mile) for an HTRZ in a second-class city within an opportunity zone Moves the tax increment notice deadline to December 31 of the year before collection begins Requires HTRZ proposal to include estimated budgets and more specificity on finances These changes are effective May 7, 2025.

Click here for the bill summary from Wasatch Front Regional Council (WFRC) of the 2025 amendments. ▸ Does GOEO administer other community/housing programs? Yes.

The office also administers the FHIZ program. The HTRZ and FHIZ programs follow similar timelines and processes and are both reviewed by the HTRZ committee. Click here for more information about FHIZ.

Click here to see Wasatch Front Regional Council (WFRC)’s HTRZ & FHIZ comparison sheet . Utah municipalities have access to other state programs that promote affordable housing, not administered by the office, including the Home Ownership Promotion Zone (HOPZ). Click here for the Utah League of Cities and Towns’ comparison of affordable housing funding tools sheet.

▸ What does a good HTRZ plan include? Interested municipalities are encouraged to consult Utah Code (63N-23-2) regarding how an HTRZ plan can be developed to meet statutory requirements before official proposal submission.

The following application best practices include proposals that outline and consider: An executive summary that includes the number of acres, number and percentage of affordable housing units, and the percentage, duration, and amount of tax differential of funding proposed.

An Affordable Housing Plan in an HTRZ proposal that outlines how the HTRZ will meet the definition of “affordable” through the term of the HTRZ (at minimum) and may include deed restrictions. A summary of how a status quo or market-driven plan would be different as compared with the HTRZ proposal according to the number of units per acre for residential and commercial use.

A summary of how the amount of tax differential would address costs directly associated with parking for dense residential construction, affordable housing, and other uses. A summary of the amount of tax revenue generated between the status quo or market-driven plan as compared with the HTRZ proposal. An outline of how the HTRZ proposal demonstrates the statutory objectives outlined in 63N-23-201(1) .

Site plan overlaying the location of the transit station, a radius of the HTRZ area, and the parcels of land within the proposed area to create a sales and use tax boundary. Visual renderings or other visual aids to assist with how the HTRZ area will look and function with the various aspects and modes of transportation, housing, and retail.

A list of assumptions of market rates, such as material and labor costs, vacancy rates, costs of capital, and other information useful for assessing the plan. A pro forma estimating the gap between status quo or market-driven plan, used by reference to the summaries found in the narrative sections.

Provides estimated budgets and construction costs, anticipated revenue, financing, expenses, and other sources and uses of funds for the project area. Other information relevant to the support of statutory requirements. ▸ How can a private entity, such as a landowner or development partner, start the process or be a participant in the HTRZ process?

An HTRZ can only be initiated by a municipality or public transit county. A private entity can consult their local municipality or public transit county to see if an HTRZ may be appropriate. ▸ What can HTRZ funding be used for?

Revenue from the tax increment must be used for the direct benefit of the HTRZ. Funding can help with income-targeted housing and structured parking costs, enhanced development and construction costs, land purchase costs, or a portion of the costs a municipality faces when creating and administering the HTRZ. During the 2026 Legislative session, H.

B. 507 authorized the use of HTRZ funds for extraterritorial affordable housing. ▸ What are “enhanced development costs”?

“Enhance development costs” means extra costs associated with structured parking costs, vertical construction costs, horizontal construction costs, life safety costs, structural costs, conveyor or elevator costs, and other costs incurred due to the increased height of buildings or enhanced development. ▸ Is there a limit to the number of HTRZs that will be considered? Yes.

The maximum number of HTRZs at light rail stations is eight in any given county. Within a county of the first class, the maximum number of HTRZs at bus rapid stations is three. ▸ What are the responsibilities of the municipality or public transit county after an HTRZ is approved?

63N-23-103. Notice requirements. Within 30 days after the HTRZ Committee approves a housing and transit reinvestment zone, the municipality or public transit county is required to do the following: Record with the county recorder where the HTRZ is located a document containing a description of the land, statement of approval, and date of adoption.

Transmit to the Utah Geospatial Resource Center a description of the land and an accurate map or plat indicating the HTRZ boundaries.

Transmit a copy of the HTRZ proposal, map and description of the land to the following: The auditor, recorder, attorney, surveyor, and assessor of the county in which any part of the HTRZ is located The officer or officers performing the function of auditor or assessor for each taxing entity that does not use the county assessment roll or collect the taxing entity’s taxes through the county The legislative body or governing board of each taxing entity The State Board of Education Utah Code Section 59-3-301.

TIF entity reporting requirements.

For a newly created HTRZ: To comply with reporting requirements for a newly created Housing and Transit Reinvestment Zone (HTRZ), the TIF entity (either the municipality or public transit county) must submit the following items to the STATS program by January 1 of the year following the HTRZ's creation: All applicable interlocal agreements A map of each project area Ongoing TIF Reporting Requirement: Beginning January 1, 2028, and every year thereafter, a TIF entity (either the municipality or public transit county) must submit a summary of the progress of each TIF project area to the STATS program as outlined in statute.