The bill amends the Tax Increment for Development Act to strengthen the criteria for establishing tax increment development districts. It introduces a new definition for "affordable housing," which is defined as living accommodations affordable for individuals or families earning less than eighty percent of the median income in the county. Additionally, petitioners are now required to conduct a housing study prior to submitting applications for tax increment development projects, which must include a multivariable estimate of housing demand resulting from new employment opportunities created by the proposed development. The process for forming a tax increment development district is also modified, requiring the governing body to adopt a resolution declaring its intent to form the district upon receiving a petition signed by at least fifty percent of property owners in the proposed area.

Moreover, the bill mandates that the resolution must detail the district's boundaries, purposes, and financing mechanisms, and it emphasizes the inclusion of findings from the housing study in the petition to ensure alignment with community housing needs. Significant changes include replacing the term "workforce" with "affordable housing" in the requirements for tax increment development plans. The governing body must also schedule a public hearing on the district's formation, notify relevant state officials within ten days of the resolution's adoption, and make all related materials available electronically to the public. These amendments aim to enhance transparency, public engagement, and the focus on affordable housing, job creation, and sustainable development in the planning process.

Statutes affected:
introduced version: 5-15-4, 5-15-5, 5-15-7