zone. (1) A municipality may receive and use tax increment and first home investment zone funds in accordance with this part. (2) (a) A county that collects property tax on property located within a first home investment zone shall, in accordance with Section 59-2-1365, distribute to the municipality any tax increment the municipality is authorized to receive up to the maximum approved by the housing and transit reinvestment zone committee. (b) (i) Except as provided in Subsection (2)(b)(ii), tax increment paid to the municipality are first home investment zone funds and shall be administered by the municipality within which the first home investment zone is located. (ii) A municipality may contract with an agency, county, or a housing authority to administer tax increment and the first home investment zone, ensure compliance with first home investment zone requirements, and administer deed restrictions. (iii) Before an agency may receive first home investment zone funds from the municipality, the municipality and the agency shall enter into an interlocal agreement with terms that: (A) are consistent with the approval of the housing and transit reinvestment zone committee; and (B) meet the requirements of Section 63N-23-702. (3) (a) A municipality and the agency shall use first home investment zone funds for the benefit of the first home investment zone and related extraterritorial housing. (b) If any first home investment zone funds will be used outside of the first home investment zone there shall be a finding in the approved proposal for a first home investment zone that the use of the first home investment zone funds outside of the first home investment zone will directly benefit the first home investment zone or related extraterritorial homes. (4) In accordance with Subsection 63N-23-702(4)(e), a municipality shall use the first home investment zone funds to achieve the purposes described in Subsections 63N-23-702(1) and (2), by paying all or part of the costs associated with the first home investment zone and extraterritorial homes, including: (a) project improvements; (b) system improvements; and (c) the costs of the municipality to create and administer the first home investment zone, which may not exceed 2% of the total first home investment zone funds, plus the costs to complete the gap analysis described in Section 63N-23-703. (5) First home investment zone funds may be paid to a participant, if the agency and participant enter into a participation agreement which requires the participant to utilize the first home investment zone funds as allowed in this section. (6) First home investment zone funds may be used to pay all of the costs of bonds issued by the municipality in accordance with Title 17C, Chapter 1, Part 5, Agency Bonds, including the cost to issue and repay the bonds including interest. (7) A municipality may create one or more public infrastructure districts within the city under Title 17D, Chapter 4, Public Infrastructure District Act, and pledge and utilize the first home investment zone funds to guarantee the payment of public infrastructure bonds issued by a public infrastructure district. (8) A municipality, agency, or public infrastructure district that intends to receive or receives tax increment, as defined in Section 59-36-101, shall comply with the requirements described in Title 59, Chapter 36, Tax Increment Financing Reporting. Renumbered and Amended by Chapter 94, 2026 General Session
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