Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 23 (2025GS)

Sponsor

Sen. Harper, Wayne A.

Final action

Governor Signed 3/26/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• modifies definitions;
• clarifies owner-occupancy requirements in a first home investment zone;
• clarifies how extraterritorial homes may be included in density and owner-occupancy requirements for a first home investment zone; and
• makes technical changes.

Every vote on this bill

Bill text

4
63N-3-1601
63N-3-1602
First Home Investment Zone Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Wayne A. Harper
House Sponsor: Stephen L. Whyte
LONG TITLE
General Description:
This bill modifies provisions affecting first home investment zones.
Highlighted Provisions:
This bill:
modifies definitions;
clarifies owner-occupancy requirements in a first home investment zone; 
clarifies how extraterritorial homes may be included in density and owner-occupancy 
requirements for a first home investment zone; and
makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
63N-3-1601
, as enacted by Laws of Utah 2024, Chapter 537
63N-3-1602
, as enacted by Laws of Utah 2024, Chapter 537
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
63N-3-1601
 is amended to read:
63N-3-1601. Definitions.
(1)
"Affordable housing" means:
(a)
for homes that are not owner occupied, housing occupied or reserved for occupancy 
by households with a gross household income equal to or less than 80% of the
 county
median gross income 
of the applicable municipal statistical area 
for households of 
the same size; or
(b)
(i)
for homes that are owner occupied, housing that is priced at 80% of the county 
median home price
.
; or
(ii)
for homes that are owner occupied, housing that is priced at 80% of the zip code 
median home price if:
(A)
the proposal described in Section 
63N-3-1603
 demonstrates that a deviation 
from the county median home price will achieve the objectives described in 
Subsection 
63N-3-1602(1)
; and
(B)
the zip code median home price is based upon county property tax assessment 
data.
(2)
"Agency" means the same as that term is defined in Section 
17C-1-102
.
(3)
"Base taxable value" means the same as that term is defined in Section 
63N-3-602
.
(4)
"Base year" means
 the same as that term is defined in Section 
63N-3-602
.
, for each tax 
increment collection period triggered within a proposed first home investment zone area, 
the calendar year prior to the calendar year the tax increment begins to be collected for 
those parcels triggered for that collection period.
(5)
(a)
"Developable area" means 
the same as that term is defined in Section 
63N-3-602
.
the portion of land within a first home investment zone available for development 
and construction of business and residential uses.
(b)
"Developable area" does not include portions of land within a first home investment 
zone that are allocated to:
(i)
parks;
(ii)
recreation facilities;
(iii)
open spaces;
(iv)
trails;
(v)
parking;
(vi)
roadway facilities; or
(vii)
other public facilities.
(6)
"Dwelling unit" means the same as that term is defined in Section 
63N-3-602
.
(7)
"Extraterritorial home" means a dwelling unit that is included as part of the first home 
investment zone proposal that:
(a)
is located within the municipality proposing the first home investment zone but 
outside the boundary of the first home investment zone;
(b)
is part of a development with a density of at least six units per acre;
(c)
is not located within an existing housing and transit reinvestment zone or an area that 
could be included in a housing and transit reinvestment zone;
(d)
has not been issued a building permit by the municipality as of the date of the 
approval of the first home investment zone; and
(e)
is required to be owner occupied for no less than 25 years.
(8)
"First home investment zone" means a first home investment zone created in accordance 
with this part.
(9)
"Home" means a dwelling unit.
(10)
"Housing and transit reinvestment zone" means the same as that term is defined in 
Section 
63N-3-602
.
(11)
"Housing and transit reinvestment zone committee" means the housing and transit 
reinvestment zone committee described in Section 
63N-3-605
.
(12)
"Metropolitan planning organization" means the same as that term is defined in 
Section 
72-1-208.5
.
(13)
"Mixed use development" means the same as that term is defined in Section 
63N-3-603
.
(14)
"Moderate income housing plan" means the same as that term is defined in Section 
11-41-102
.
(15)
"Municipality" means the same as that term is defined in Section 
10-1-104
.
(16)
"Owner occupied" means private real property that is:
(a)
used for a single-family residential purpose; and
(b)
required to be occupied by the owner of the real property for no less than 25 years.
(17)
"Project area" means the same as that term is defined in Section 
17C-1-102
.
(18)
(a)
"Project improvements" means site improvements and facilities that are:
(i)
planned and designed to provide service for development resulting from a 
development activity;
(ii)
necessary for the use and convenience of the occupants or users of development 
resulting from a development activity; and
(iii)
not identified or reimbursed as a system improvement.
(b)
"Project improvements" does not mean system improvements.
(19)
"State Tax Commission" means the State Tax Commission created in Section 
59-1-201
.
(20)
(a)
"System improvements" means existing and future public facilities that are 
designed to provide services to service areas within the community at large.
(b)
"System improvements" does not mean project improvements.
(21)
(a)
"Tax increment" means the difference between:
(i)
the amount of property tax revenue generated each tax year by a taxing entity from 
the area within a first home investment zone designated in the first home 
investment zone proposal as the area from which tax increment is to be collected, 
using the current assessed value and each taxing entity's current certified tax rate 
as defined in Section 
59-2-924
; and
(ii)
the amount of property tax revenue that would be generated from that same area 
using the base taxable value and each taxing entity's current certified tax rate as 
defined in Section 
59-2-924
.
(b)
"Tax increment" does not include property tax revenue from:
(i)
a multicounty assessing and collecting levy described in Subsection 
59-2-1602
(2); 
or
(ii)
a county additional property tax described in Subsection 
59-2-1602
(4).
(22)
"Taxing entity" means the same as that term is defined in Section 
17C-1-102
.
(23)
"Unencumbered annual community reinvestment agency revenue" means tax 
increment revenue received by the agency for purposes identified in Title 17C, Limited 
Purpose Local Government Entities - Community Reinvestment Agency Act, that:
(a)
have not been designated or restricted for future qualified uses as approved by the 
agency board related to a specific project area; and
(b)
do not have a date certain by which the tax increment revenues will be used.
Section 2, Section 
63N-3-1602
 is amended to read:
63N-3-1602. Applicability, requirements, and limitations on a first home 
investment zone.
(1)
A first home investment zone created pursuant to this part shall promote the following 
objectives:
(a)
encouraging efficient development and opportunities for home ownership by 
providing a variety of housing options, including affordable housing and for sale, 
owner-occupied housing;
(b)
improving availability of housing options;
(c)
overcoming development impediments and market conditions that render a 
development cost prohibitive absent the proposal and incentives;
(d)
conserving water resources through efficient land use;
(e)
improving air quality by reducing fuel consumption and motor vehicle trips;
(f)
encouraging transformative mixed-use development;
(g)
strategic land use and municipal planning in major transit investment corridors as 
described in Subsection 
10-9a-403
(2);
(h)
increasing access to employment and educational opportunities;
(i)
increasing access to child care; and
(j)
improving efficiencies in parking and transportation, including walkability of 
communities, street and path interconnectivity within the proposed development and 
connections to surrounding communities, and access to roadways, public 
transportation, and active transportation.
(2)
In order to accomplish the objectives described in Subsection (1), a municipality or 
county that initiates the process to create a first home investment zone as described in 
this part shall ensure that the proposal for a first home investment zone includes:
(a)
subject to Subsection (3), a minimum of 30 housing units per acre
:
(i)
in at least 51% of the developable area within the first home investment zone
; 
and
(ii)
of which 50% must be owner occupied
;
(b)
a mixed use development;
(c)
a requirement that at least 25% of homes within the first home investment zone 
remain owner occupied for at least 25 years from the date of original purchase;
(d)
for homes inside the first home investment zone, a requirement that at least 12% of 
the owner occupied homes and 12% of the homes that are not owner occupied are 
affordable housing; 
and
(e)
a requirement that at least 20% of the extraterritorial homes are affordable housing
.
; 
and
(f)
except for extraterritorial homes, the number of homes that result from multiplying 
the number of housing units described in Subsection 
(2)(a)
 by the developable area 
described in Subsection 
(2)(a)(i)
 may be intermingled with other mixed uses within 
the first home investment zone.
(3)
(a)
Subject to Subsection (3)(b), to satisfy the requirements described in Subsection 
(2)(a), a first home investment zone may include an extraterritorial home to count 
toward the required density 
and owner-occupancy 
of the first home investment zone 
by:
(i)
(A)
taking 
adding 
the total number of extraterritorial homes related to the first 
home investment zone
 to the total number of homes within the first home 
investment zone
; and
(B)
adding the total number under Subsection (3)(a)(i)(A) to the number of 
homes within the first home investment zone; and
(ii)
dividing the 
total
sum
 described in Subsection (3)(a)(i) by
 a number equal to 
51% of
 the total number of developable acres 
with
within
 the first home 
investment zone.
(b)
Extraterritorial homes may account for no more than half of the total homes to 
calculate density within a first home investment zone.
(4)
(a)
If a municipality proposes a first home investment zone, the proposal shall comply 
with the limitations described in this Subsection (4).
(b)
A first home investment zone may not be less than 10 acres and no more than 100 
acres
 of developable area
 in size.
(c)
(i)
Except as provided in Subsection (4)(c)(ii), a first home investment zone is 
required to be one contiguous area.
(ii)
While considering a first home investment zone proposal as described in Section 
63N-3-1605
, the housing and transit reinvestment zone committee may consider 
and approve a first home investment zone that is not one contiguous area if:
(A)
the municipality provides evidence in the proposal showing that the deviation 
from the contiguity requirement will enhance the ability of the first home 
investment zone to achieve the objectives described in Subsection (1); and
(B)
the housing and transit reinvestment zone committee determines that the 
deviation is reasonable and circumstances justify deviation from the contiguity 
requirement.
(iii)
The first home investment zone area contiguity is not affected by roads or other 
rights-of-way.
(d)
(i)
A first home investment zone proposal may propose the capture of a maximum 
of 60% of each taxing entity's tax increment above the base year for a term of no 
more than 25 consecutive years within a 45-year period not to exceed the tax 
increment amount approved in the first home investment zone proposal.
(ii)
A first home investment zone proposal may not propose or include triggering 
more than three tax increment collection periods during the applicable 25-year 
period.
(iii)
Subject to Subsection (4)(d)(iv), a municipality shall ensure that the required 
affordable housing units are included proportionally in each phase of the first 
home investment zone development.
(iv)
A municipality may allow a first home investment zone to be phased and 
developed in a manner to provide more of the required affordable housing units in 
early phases of development.
(e)
If a municipality proposes a first home investment zone, commencement of the 
collection of tax increment, for all or a portion of the first home investment zone, is 
triggered by providing notice as described in Subsection (5).
(f)
A municipality may restrict homes within a first home investment zone and related 
extraterritorial homes from being used as a short-term rental.
(g)
A municipality shall ensure that affordable housing within a first home investment 
zone and related extraterritorial homes that are reserved as affordable housing are 
spread throughout the overall development.
(h)
A municipality shall ensure that at least 80% of extraterritorial homes included in a 
first home investment zone proposal are single-family detached homes.
(i)
A municipality shall include in a first home investment zone proposal:
(i)
an affordable housing plan, which may include deed restrictions, to ensure the 
affordable housing required in the proposal will continue to meet the definition of 
affordable housing at least throughout the entire term of the first home investment 
zone; and
(ii)
an owner occupancy plan, which may include deed restrictions, to ensure the 
owner occupancy requirements in the proposal will continue to meet the definition 
of owner occupancy at least throughout the entire term of the first home 
investment zone.
(j)
A municipality shall include in the first home investment zone proposal evidence to 
demonstrate how the first home investment zone proposal complies with the 
municipality's moderate income housing plan and general plan.
(5)
Notice of commencement of collection of tax increment shall be sent by mail or 
electronically to the following entities no later than January 1 of the year for which the 
tax increment collection is proposed to commence:
(a)
the State Tax Commission;
(b)
the State Board of Education;
(c)
the state auditor;
(d)
the auditor of the county in which the first home investment zone is located;
(e)
each taxing entity affected by the collection of tax increment from the first home 
investment zone;
(f)
the assessor of the county in which the first home investment zone is located; and
(g)
the Governor's Office of Economic Opportunity.
(6)
A first home investment zone proposal may not include a proposal to capture sales and 
use tax increment.
(7)
A municipality may not propose a first home investment zone in a county of the first 
class if the limitation described in Subsection 
63N-3-603
(7)(c) has been reached.
(8)
A municipality may not propose a first home investment zone in a location that is 
eligible for a housing and transit reinvestment zone.
(9)
A municipality may not propose a first home investment zone if the municipality's 
community reinvestment agency, based on the most recent annual comprehensive 
financial report, retains cash and cash equivalent assets of more than 20% of ongoing 
and unencumbered annual community reinvestment agency revenue.
Section 3. 
Effective date.
This bill takes effect on 
May 7, 2025
.
1-29-25 8:51 AM