FIRST HOME INVESTMENT ZONES (FHIZ) Prioritizing home ownership and affordability throughout Utah.
Utah municipalities can access a new tool to actively address housing affordability challenges within their communities. The First Home Investment Zone (FHIZ) allows cities to strategically plan mixed-use, medium-density city or town centers accompanied by surrounding single-family homes. Upon approval, a FHIZ allows a portion of incremental tax revenue growth to be captured over a period of time to support development costs. This revenue must directly benefit the FHIZ and related homes outside the zone, promoting home ownership and affordable housing and covering project and system infrastructure costs.
CHARACTERISTICS OF FHIZ
Home ownership Medium density
Affordable housing Variety of housing Owner-occupied Improves air quality Conserves water Connectivity options
WHERE IS A FHIZ ALLOWED? A FHIZ cannot be proposed around a transit station where a Housing and Transit Reinvestment Zone (HTRZ) may be proposed, nor can it overlap with an existing Community Reinvestment Area (CRA). There is also a limitation on FHIZ if a municipality’s CRA funds are more than 20% of its ongoing, unencumbered annual revenue. New homes may not yet be permitted by the city, and the relevant areas must be zoned appropriately before the FHIZ is approved.
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