(1)A first home investment zone created in accordance with this part shall promote the following objectives:
(1)(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;
(1)(b) improving availability of housing options;
(1)(c) overcoming development impediments and market conditions that render a development cost prohibitive absent the proposal and incentives;
(1)(d) conserving water resources through efficient land use;
(1)(e) improving air quality by reducing fuel consumption and motor vehicle trips;
(1)(f) encouraging transformative mixed-use development;
(1)(g) strategic land use and municipal planning in major transit investment corridors as described in Subs
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(1) A first home investment zone created in accordance with this part shall promote the following objectives:
(1)(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;
(1)(b) improving availability of housing options;
(1)(c) overcoming development impediments and market conditions that render a development cost prohibitive absent the proposal and incentives;
(1)(d) conserving water resources through efficient land use;
(1)(e) improving air quality by reducing fuel consumption and motor vehicle trips;
(1)(f) encouraging transformative mixed-use development;
(1)(g) strategic land use and municipal planning in major transit investment corridors as described in Subsection 10-20-404(2);
(1)(h) increasing access to employment and educational opportunities;
(1)(i) increasing access to child care; and
(1)(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:
(2)(a) subject to Subsection (3), a minimum of 30 housing units per acre:
(2)(a)(i) in at least 51% of the developable area within the first home investment zone; and
(2)(a)(ii) of which 50% must be owner occupied;
(2)(b) a mixed use development;
(2)(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;
(2)(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;
(2)(e) a requirement that at least 20% of the extraterritorial homes are affordable housing; and
(2)(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) (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:
(3)(a)(i) 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
(3)(a)(ii) dividing the sum described in Subsection (3)(a)(i) by a number equal to 51% of the total number of developable acres within the first home investment zone.
(3)(b) Extraterritorial homes may account for no more than half of the total homes to calculate density within a first home investment zone.
(4) (4)(a) If a municipality proposes a first home investment zone, the proposal shall comply with the limitations described in this Subsection (4).
(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.
(4)(c) (4)(c)(i) Except as provided in Subsection (4)(c)(ii), a first home investment zone is required to be one contiguous area.
(4)(c)(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:
(4)(c)(ii)(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
(4)(c)(ii)(B) the housing and transit reinvestment zone committee determines that the deviation is reasonable and circumstances justify deviation from the contiguity requirement.
(4)(c)(iii) The first home investment zone area contiguity is not affected by roads or other rights-of-way.
(4)(d) (4)(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.
(4)(d)(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.
(4)(d)(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.
(4)(d)(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.
(4)(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).
(4)(f) A municipality may restrict homes within a first home investment zone and related extraterritorial homes from being used as a short-term rental.
(4)(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.
(4)(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.
(4)(i) A municipality shall include in a first home investment zone proposal:
(4)(i)(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
(4)(i)(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.
(4)(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:
(5)(a) the State Tax Commission;
(5)(b) the State Board of Education;
(5)(c) the state auditor;
(5)(d) the auditor of the county in which the first home investment zone is located;
(5)(e) each taxing entity affected by the collection of tax increment from the first home investment zone;
(5)(f) the assessor of the county in which the first home investment zone is located; and
(5)(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.