(1) (a) To designate an area as a neighborhood center, a local government shall, in accordance with policies and procedures adopted by the department that may include different criteria for varying regional and local contexts, identify areas that meet the following criteria: (I) Allow a net housing density that supports mixed-use pedestrian-oriented neighborhoods, the development of regulated affordable housing, and increased public transit ridership; (II) Within census urbanized areas, as defined in the latest federal decennial census, establish an administrative approval process for multifamily residential development on parcels in the area that are no larger than a size determined by the department; (III) Ensure that the area has a mixed-use pedestrian-oriented neighborhood, as determined by criteria established by the department; and (IV) Satisfy any other criteria, as determined by the department, and as may vary by regional context, for the qualification of an area as a neighborhood center. (b) Notwithstanding the requirements for a local government designating an area as a neighborhood center pursuant to subsection (1)(a) of this section, the department shall establish separate requirements for local governments designating areas within potential transit areas identified by the department of transportation pursuant to section 29-35-207 (5). (2) If a local government designates an area as a neighborhood center pursuant to subsection (1) of this section, the local government shall submit a neighborhood center report to the department in a form and manner determined by the department.
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