Housing and Transit Reinvestment Zones (HTRZ)
The Redevelopment Agency of Salt Lake City (RDA) is exploring the possibility of establishing one or more Housing and Transit Reinvestment Zones (HTRZ) near transit stops in the City. The State-created HTRZ redevelopment tool allows for investment in public and private transit-oriented development projects that benefit the community. This webpage is meant to provide information on HTRZ goals and the application process.
DO YOU HAVE PLANS TO DEVELOP OR IMPROVE
YOUR PROPERTY WITHIN THE NEXT 10-15 YEARS?
If so, we need to hear from YOU! Please give input and submit general development details to support the creation of a Housing and Transit Redevelopment Zone (HTRZ) by taking our Future Development Survey by Monday, December 12. Development projects may include, but are not limited to multi-family housing, commercial spaces, mixed-use buildings, and rehab projects.
FREQUENTLY ASKED QUESTIONS
What is an HTRZ?
Intended to help address Utah’s severe housing crisis, this legislation allows for municipalities to capture tax increment revenue around certain public transit facilities to facilitate transit-oriented development (TOD) including: mixed-use, multifamily, and affordable housing development and, ultimately, a higher utilization of public transit.
What are the State's objectives for an HTRZ?
The State has outlined that HTRZs deliver the following:
- Promote transit-oriented development (TOD) that will, in turn:
- Increase use of public transit
- Increase availability of housing and affordable housing
- Conserve water resources through efficient land use
- Improve air quality by reducing fuel consumption and motor vehicle trips
- Spur investment in public transportation, transit infrastructure, including major corridors
- Encourage transformative mixed-use development and investment in transportation and public transit infrastructure in strategic areas
- Increase access to employment, childcare, and education opportunities
How would the City establish an HTRZ?
Cities may propose HTRZs surrounding transit stops to the Governor’s Office of Economic Opportunity (GOEO). GOEO reviews and approves all HTRZ applications throughout Utah.
If an HTRZ is approved by GOEO, any private development seeking financial assistance will be required to apply and meet the standards of applicable RDA programs.
As development occurs, a portion of the new property taxes created is captured and can be used for both public and private development projects for a period of 15-25 years.
This promotes public benefits (i.e. affordable housing, public transit, green space, pedestrian-oriented infrastructure, etc.) and private developments that align with City goals.
How is HTRZ funding allowed to be used?
These are all the options allowed by the State’s HTRZ Act:
- Income-Targeted Housing Costs
- Public Infrastructure
- Property Acquisition Costs
- Enhanced Development Costs
- Horizontal Construction Costs
- Vertical Construction Costs
- HTRZ Administration
- Structured Parking
In any submitted applications, the RDA will look to its mission and values to prioritize public benefits accordingly.
What are the State's requirements?
The State’s parameters for the areas are as follows:
- LAND USE // 51% of developable area must include residential uses
- DENSITY // Average of 50 residential units per acre
- AFFORDABILITY // 10% of housing must be affordable
- POPULATIONS SERVED // A reasonable percentage of residential units must have 2+ bedrooms
What is the Funding Source?
An HTRZ is funded via tax increment financing (TIF), a financial mechanism used by more than 90 municipalities across Utah. More about TIF is available here.