Signed by Governor Pete Ricketts

Vote Smart's Synopsis:

Vote to pass a bill that amends and establishes requirements for redevelopment projects under the Community Development Law.

Highlights:

• Requires a governing body to do the following before approving a redevelopment project to carry out the construction of workforce housing (Sec. 3):

• Receive a housing study which is current within 24 months;

• Prepare an incentive plan for construction of housing in the municipality targeted to house existing or new workers;

• Hold a public hearing on such incentive plan with a notice that complies with the conditions set forth in section 13 of Legislative Bill 874, 105th Legislature, Second Session, 2018; and

• After the public hearing, find that such an incentive plan is necessary to prevent the spread of blight and substandard conditions within the municipality, will promote additional safe and suitable housing for individuals and families employed in the municipality, and will not result in the unjust enrichment of any individual or company.

• Specifies that this includes carrying out the construction of workforce housing in a rural community or in an extremely blighted area within a municipality that is not a rural community in the definition of “redevelopment project” (Sec. 2).

• Defines an “extremely blighted area” as a substandard and blighted area in which the following are true (Sec. 2):

• The average rate of unemployment in the area during the period covered by the most recent federal decennial census is at least 200% of the average rate of unemployment in the state; and

• The average poverty rate in the area exceeds 20% for the total federal census tract or federal census block group in the area.

• Defines a “rural community” as any municipality in a county with a population of fewer than 100,000 inhabitants as determined by the most recent federal decennial census (Sec. 2).

• Defines “workforce housing” as any of the following (Sec. 2):

• Housing that meets the needs of today’s working families;

• Housing that is attractive to new residents considering relocation to a rural community;

• Owner-occupied housing units that cost not more than $275,000 to construct or rental housing units that cost not more than $200,000 per unit to construct;

• Owner-occupied and rental housing units for which the cost to substantially rehabilitate exceeds 50% of a unit’s assessed value; and

• Upper-story housing.

Full Bill Text