Ogden officials briefed on state transit- and home-ownership financing tools

Jared Johnson, executive director of Community and Economic Development for Ogden City, told a joint work session that two new state tools — Housing and Transit Reinvestment Zones (HTRZ) and First-Home Investment Zones (FIS, colloquially "Fizz") — use tax-increment financing to support transit-oriented and owner-occupied affordable housing projects.

Johnson said HTRZs are defined in state law (Title 63N, chapter 3, part 6) and require that at least 12% of units in an HTRZ be affordable, with 9% targeted at households earning up to 80% of area median income (AMI) and 3% at 60% AMI. "It's a tax-increment tool — that's what you're generating to provide the incentive," Johnson said, describing the financing as similar to a community-redevelopment approach but with transit-focused performance measures.

The presenter explained density and size thresholds tied to transit mode: an average density of 50 dwelling units per acre near a rail stop and 39 units per acre for bus-rapid-transit/light-rail corridors, plus a practical minimum project-area size of about 10 acres. He also said HTRZ project areas generally must be at least 51% residential in their developable area to qualify.

Johnson outlined the application and review process: the municipality submits a plan to the Governor's Office of Economic Opportunity (GOEO), GOEO notifies taxing entities and arranges a gap-analysis contractor (whose cost the city must pay), and an HTRZ review committee (a panel that includes GOEO, municipal and county representatives, school-district designees, transit representatives and legislative appointees) evaluates plans. "The taxing entities are compelled to participate once the plan gets approved," he said, stressing the statutory review role for those entities.

On capture rules, Johnson said jurisdictions can capture a high share of increment for specified periods tied to transit type — for a rail stop up to 80% above base year for up to 25 consecutive years within a 45-year window (with strict re‑triggering limits), and shorter capture windows for BRT/light-rail alignments. He cautioned the rules and exceptions are technical and that phased projects can time capture windows to meet development needs.

Johnson listed allowable uses of HTRZ funds, including income-targeted housing, property acquisition, structured parking and enhanced development costs (for example, construction above four stories). He added that program administration is limited (approximately 2% of funds) and that municipalities receive the financing tool and may pass incentives through participation agreements.

On First-Home Investment Zones (FIS), Johnson said rules (Title 63N, chapter 3, part 16) require at least 25% of homes in the FIS be affordable, with separate owner-occupation and rental affordability shares (for example, minimum owner-occupied set-asides and 25-year owner-occupancy terms for designated units). FIS areas can combine noncontiguous contributing parcels across a jurisdiction to meet thresholds, and FIS capture can be up to 60% of each taxing entity's increment for limited consecutive years within a longer statutory period.

Council members and planning commissioners asked detailed questions about station radii, the number of allowable HTRZs, how capture affects other taxing entities, and which local sites might be candidates. Johnson said Union Station (rail) and the Capitol Square/Rite Aid block (adjacent to BRT) are two areas the city is currently studying as potential HTRZ candidates, but emphasized the need for feasibility analysis — including GIS mapping, developable acreage checks and coordination with UTA and other taxing entities — before any formal application.

The session concluded without any formal motion or vote; staff agreed to distribute the presentation materials to planning commissioners and to follow up on specific questions about application mechanics and parcel eligibility.