So here’s more detail about the FHIZ bill that was just dropped at the legislature this morning.  I think it’s a notable idea, something worth trying out.  It’s sort of similar to HTRZs, which we’ve gotten some (not much) experience with.  But it would be a carrot, not a stick, which in and of itself is a good thing, making it more likely to succeed if it’s tried (things are continuing to look dismal for the top-down zoning reform mandates – a citizen referendum in Milton, Massachusetts just tanked an upzoning that was more or less required by state legislative action – more on that in an upcoming post).

Called the First Home Investment Zone (FHIZ) Act, it is getting stuck with the acronym pronounced “fizz” – so I guess that makes future proponents of these “fizzies?”  Is that better than being a Swiftie?

Well, regardless, here’s a link to the bill –  S.B. 268 First Home Investment Zone Act

And here, thanks to Miranda Jones Cox at WFRC (which staff had a big hand in helping to craft this legislation, along with League staff and key legislators), is a summary of what the bill would do:

1. New tool for city to propose medium-density city or town center (min. 10, max. 100 acres) AND owner-occupied homes.
2. Eligible anywhere HTRZs are not allowed (i.e., not around FrontRunner, Trax, BRT stations). Note: FHIZ would be considered under the existing cap for number of HTRZs allowed in SLCo (11 combined, with 8 Trax, 3 BRT, not including FrontRunner)
3. Follows similar process to creation of HTRZ: City proposes FHIZ for review and approval by HTRZ committee. FHIZ proposal must address comparable policy goals to HTRZ, including housing availability, affordability, and ownership, transportation planning, strategic land and water use, etc.
4. Per acre minimum residential density of 30 units per acre (over 51% of the developable area) in the FHIZ zone – but up to half of those homes can be outside the FHIZ zone…
5. New homes outside the FHIZ zone but within the proposing city (“extraterritorial homes”) can “count” towards requirement of 30 units/acre, if they are:
   1. Long-term owner-occupied (deed restricted for 25 years)
   2. At minimum density of 8 units per acre
   3. Included as part of the overall FHIZ proposal
6. Requirements:
   1. Owner occupied: 100% of the homes outside the zone, and not less than 50% of the total homes inside + outside the zone.
   2. Affordable (120% AMI, deed restricted): At least 12% of homes inside the FHIZ zone, and at least 20% of homes outside the zone. Affordable homes must be spread across the development and be of the same quality.
   3. New homes may not yet be permitted by the city, and the relevant areas must be zoned appropriately, before the FHIZ is approved.
   4. No short-term rentals of owner-occupied homes.
   5. FHIZ zone must include mixed use (needed to generate value).
7. Up to 60% of property tax increment capture from all taxing entities inside FHIZ zone for 25 out of 45 years (maximum of three tax increment phases).
8. Increment use by city: project and system infrastructure costs for the FHIZ and related homes outside zone.

Take a look and let us know what you think, if you would consider using this in your community or your project.