Community Reinvestment Agency Amendments

Added new definitions for 'dormancy period' (ending six months after funds collection ends), 'dormancy period extension hearing,' 'inactive airport site,' 'inactive industrial site,' and 'non-profit housing fund.'

Modified the dissolution process to allow agencies to extend a dormancy period once for up to two years if specific conditions are met and public hearings are held.

Added a new requirement that notices for dormancy period extension hearings must inform the public that individuals have the right to appear and object to the extension.

Updated budget amendment rules to require specific disclosures if an agency proposes to receive a greater share of tax increment or to extend the funds collection period.

Adjusted the dormancy period calculation to end six months after the project area funds collection period ends, rather than five years after.

Replaced the term 'Active project area' with 'Adjusted tax increment' to better define how agencies calculate their authorized revenue share based on project start dates and budget approvals.

Renumbered and redefined terms such as 'Agency funds' and 'Base year' to provide clearer guidance on what constitutes agency money and how base years are determined for different project types.

Removed specific dissolution timeline exceptions tied to a May 6, 2026 date, likely to align with other legislative changes regarding project dormancy periods.

Established a mandatory five-year dissolution deadline for project areas that began dormancy before May 6, 2026.

Required project areas to distribute any unexpended funds to taxing entities upon dissolution.

Clarified that agencies must return unexpended funds to taxing entities on a proportionate share basis.

The standard dormancy period for a project area was changed from six months after funds collection ends to five years after funds collection ends.

The automatic dissolution date for project areas with unexpended funds was changed from six months after the dormancy period ends to five years after the dormancy period ends.

A new rule allows agencies to dissolve a project area early if they adopt a resolution and the community legislative body adopts an ordinance, regardless of the dormancy period status.

The definition of 'tax increment' was updated to reference Section 59-2-92417C-1-1001 for determining certified final tax rates, ensuring the calculation aligns with current statutory language.

New requirements mandate that notices for dormancy period extension hearings must inform individuals that they can appear before the board to object to the proposed extension.

Provisions regarding the distribution of unexpended funds were clarified to ensure a proportionate share is returned to each taxing entity when a project area is dissolved.

Several definitions were renumbered and slightly rephrased to improve clarity and consistency throughout the code.

Updated definitions for 'Active project area', 'Adjusted tax increment', and 'Agency' to clarify eligibility and calculation methods for tax revenue.

Added a mandatory requirement for community reinvestment agencies to submit annual data to the Governor's Office of Economic Opportunity to track project progress and fund usage.

Established a penalty system where non-compliant agencies face a 20% withholding of tax increment revenue for two consecutive years of failed reporting.

Revised the rules for dissolving project areas by creating a formal process to extend the 'dormancy period' by up to two years if significant progress is being made.

Extended reporting obligations to include broader categories of local entities, such as municipalities and public infrastructure districts, beyond just community reinvestment agencies.