SB 221 Utah Senate · 2026 General Session

Housing and Transit Reinvestment Zone Amendments

SB 221 amends definitions and administrative procedures for Utah's Housing and Transit Reinvestment Zones, directly affecting municipalities and planning authorities managing these zones. It redefines "base year" for property tax calculations, introduces the term "extraterritorial affordable housing," and adjusts requirements for boundary changes and project approvals. Key provisions include clarifying terms like "developable area" and modifying processes for reviewing investment zone proposals. The bill makes technical updates to Utah Code sections without adding new funding or creating new zones, focusing solely on refining existing framework language.

Issues: ✓ Housing

Bill status passed 4 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Mar 2026

Senate Passage

Feb 2026

House Passage

Feb 2026

Governor

Introduced Jan 29, 2026 Last action Mar 7, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

Substitute #1 → Substitute #2 · 4 edits

MODERATE

This bill updates the definitions and operational rules for housing and transit reinvestment zones to align with recent changes in state tax law. It clarifies how 'base taxable value' is calculated, adds a new definition for 'extraterritorial affordable housing,' and coordinates with other investment zone amendments to ensure consistency across different development programs.

Scope change

The bill expands the scope of affected statutes by adding Section 59-2-924 (tax definitions) to the list of amended sections and includes a coordination clause to manage interactions with other investment zone bills.

DEFINITION

Updated the definition of 'base taxable value' in the state tax code to explicitly reference the new definition found in the housing and transit reinvestment zone act.

Introduced a new definition for 'extraterritorial affordable housing' to allow funds to be used for affordable housing located outside the reinvestment zone boundary but within the proposing municipality.

TECHNICAL

Added a coordination clause to ensure this bill's changes work correctly with S.B. 39 and other related investment zone legislation.

Corrected the list of affected Utah Code sections to include Section 59-2-924 and updated chapter references to reflect the most recent legislative sessions.

Introduced → Substitute #1 · 6 edits

MODERATE

This bill amends Utah's housing and transit reinvestment zone laws to clarify definitions, adjust affordability requirements, and update boundary rules. It redefines the 'base year' for tax calculations to align with when collection actually begins, introduces a new definition for 'extraterritorial affordable housing' to allow funding outside the zone, and modifies radius limits for zones near commuter rail stations to better accommodate Opportunity Zones. The changes aim to streamline the creation of these zones and ensure they effectively promote affordable housing and transit-oriented development.

Scope change

The bill expands the scope of eligible zones by clarifying rules for zones near commuter rail stations in Opportunity Zones and allowing the use of funds for affordable housing located outside the zone's physical boundaries.

DEFINITION

Redefines 'base year' to be the calendar year immediately preceding the first year of property tax increment collection, removing previous ambiguity about how the base year is determined for different zone types.

Adds a new definition for 'extraterritorial affordable housing,' which allows municipalities to use reinvestment funds to build affordable housing outside the zone's boundary if it is part of a dense, owner-occupied development.

ELIGIBILITY

Modifies radius restrictions for housing zones near commuter rail stations, increasing the allowable radius to 1/2 mile for municipalities in Opportunity Zones to encourage development in those designated areas.

REQUIREMENT

Adjusts density and affordable housing requirements for zones located at public transit hubs and bus rapid transit stations, setting specific dwelling units per acre thresholds based on location.

Updates the maximum number of property tax increment collection periods allowed for a project from three to five for commuter rail zones and three to five for light rail/bus rapid transit zones.

TECHNICAL

Updates references to various Utah Code sections and clarifies administrative procedures for proposing and approving reinvestment zones.

Floor votes · Senate Feb 23, 2026

How they voted

23–4

Passed · 2 other

Total votes 29

Feb 23, 2026

D Democratic6

4 Yea 2 Nay

66% Yea

N Forward1

1 Yea

100% Yea

R Republican22

18 Yea 2 Nay 2

81% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 5, 2026

Lower · Passed

House/ comm rpt/ sent to Rules [House Rules Committee]

lower

Mar 4, 2026

Lower · Passed

House Comm - Recommends Returned to Rules [House Government Operations Committee]

lower

Mar 3, 2026

Lower · Passed

House Comm - Held [House Government Operations Committee]

lower

Mar 2, 2026

Committee

House/ to standing committee [House Government Operations Committee]

lower

Feb 25, 2026

Introduced

House/ 1st reading (Introduced)

lower

Feb 24, 2026

Lower · Passed

Senate/ passed 3rd reading

lower

Feb 23, 2026

Senate · Passed

Senate Vote: pass (23-4-2)

senate

Feb 10, 2026

Upper · Passed

Senate/ comm rpt/ substituted [Senate Judiciary, Law Enforcement, and Criminal Justice Committee]

upper

Feb 10, 2026

Upper · Passed

Senate Comm - Favorable Recommendation [Senate Judiciary, Law Enforcement, and Criminal Justice Committee]

upper

Feb 3, 2026

Committee

Senate/ to standing committee [Senate Judiciary, Law Enforcement, and Criminal Justice Committee]

upper

Jan 29, 2026

Introduced

Senate/ 1st reading (Introduced)

upper

1 primary · 1 co-sponsor