Tax increment financing.

25LSO-0025
2025
STATE OF WYOMING
25LSO-0025
Introduced
2.0

HOUSE BILL NO. HB0068

Tax increment financing.

Sponsored by: Joint Corporations, Elections & Political Subdivisions Interim Committee

A BILL

for

AN ACT relating to the Wyoming Urban Renewal Code; expanding the application of the code to include the provision of affordable housing; providing findings and definitions; making conforming changes; and providing for effective dates.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.

W.S. 15
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102 by creating a new subsection (d), 15
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103(a)(iii), (xvii), (xix)(intro) and by creating a new paragraph (xx), 15
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104(a)(intro), 15
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105(a)(i), (iii) and (b)(i), 15
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106(a)(i) and (ii), 15
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107, 15
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110(a)(iv) and (b)(i)(A) through (D), 15
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114(a), 15
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115(a)(iii), 15
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116(a)(ii)(intro) and (b) and 15
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120(a)(i) are amended to read:

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102.

Legislative findings.

(d)

It is further found and declared that there exists in municipalities of the state a lack of affordable housing which is injurious to the public health, safety, morals and welfare of the residents of the state; that the lack of affordable housing constitutes an economic and social liability imposing onerous municipal burdens which decrease the tax base and reduce tax revenues and substantially impairs or arrests the sound growth of municipalities; and that the provision of affordable housing is a matter of state policy and state concern.

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103.

Definitions.

(a)

As used in this chapter, unless a different meaning is clearly indicated by the context:

(iii)

"Blighted area" means an area which by reason of the presence of
not less than two (2) conditions for a blighted area specified in this paragraph. The conditions for a blighted area are
a substantial number of slums, deteriorated or deteriorating structures, predominance of defective or inadequate street layout, faulty lot layout in relation to size, adequacy, accessibility or usefulness, unsanitary or unsafe conditions, deterioration of site or other improvements, diversity of ownership, tax or special assessments, delinquency exceeding the fair value of the land, defective or unusual conditions of title, or the existence of conditions which endanger life or property by fire and other causes, or
any combination of those factors,
substantially impairs or arrests the sound growth of a municipality, retards the provision of housing accommodations or constitutes an economic or social liability and is a menace to the public health, safety, morals or welfare in its present condition and use.

However, if the blighted area consists of open land, the conditions contained in W.S. 15
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110(b) apply and any disaster area referred to in W.S. 15
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112 constitutes a "blighted area";

(xvii)

"Urban renewal area" means a slum area
,

or a
blighted area or
a combination thereof which
other area that
the local governing body designates as appropriate for an urban renewal project
as provided in this chapter
;

(xix)

"Urban renewal project" includes undertakings and activities of a municipality in one (1) or more urban renewal areas for the
provision of affordable housing or for the
elimination
and for
or
the prevention of the development or spread of slums and blight, and may involve slum clearance and redevelopment in an urban renewal area, or rehabilitation or conservation in an urban renewal area, or any combination or part thereof in accordance with an urban renewal plan.

The undertakings and activities may include:

(xx)

"Affordable housing" means housing where the total gross household income of the occupant does not exceed one hundred twenty percent (120%) of the median gross household income for the county where the housing is located.

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104.

Private enterprise to be preferred; when considered.

(a)

A municipality, to the greatest extent it determines to be feasible in carrying out the provisions of this chapter and consistent with its needs, shall afford maximum opportunity to the
provision of affordable housing or the development,
rehabilitation or redevelopment of the urban renewal area by private enterprise. A municipality shall give consideration to this objective in exercising its powers under this chapter, including the:

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105.

Workable program; formulation; objectives and provisions thereof.

(a)

For the purposes of this chapter a municipality may formulate for itself a workable program for utilizing appropriate private and public resources to:

(i)

Provide affordable housing or e
liminate and prevent the development or spread of slums and urban blight;

(iii)

Provide for the
development of the urban renewal area as provided in this chapter or the
redevelopment of slum and blighted areas; or

(b)

A workable program may include provisions for the:

(i)

Provision of affordable housing or the p
revention of the spread of blight through diligent enforcement of housing, zoning and occupancy controls and standards;

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106.

Initiative resolution; how adopted; findings.

(a)

No municipality shall exercise the authority conferred upon municipalities by this chapter until the local governing body, on its own motion or by virtue of a petition signed by twenty
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five (25) or more electors of the municipality, has adopted a resolution finding that:

(i)

There is a lack of affordable housing or that o
ne (1) or more slum or blighted areas exist in the municipality; and

(ii)

The rehabilitation, conservation,
development,
redevelopment or a combination thereof of the area or areas is necessary in the interest of the public health, safety, morals or welfare of the residents of the municipality.

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107.

Preliminary requirements for projects; generally.

An urban renewal project for an urban renewal area shall not be planned or initiated unless the governing body, by resolution, has determined
the area has a lack of affordable housing and is appropriate for affordable housing or has determined
the area to be a slum area or a blighted area or a combination thereof and designated it as
an urban renewal area and determined the area
appropriate for an urban renewal project
under this chapter
.

A municipality shall not acquire real property for any urban renewal project unless the local governing body has approved the urban renewal project in accordance with W.S. 15
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110.

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110.

Preliminary requirements for projects; approval by and findings of governing body.

(a)

Following the hearing specified in W.S. 15
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109, the local governing body may approve an urban renewal project and the plan therefor if it finds that:

(iv)

The urban renewal plan affords maximum opportunity, consistent with the municipality's needs, for the rehabilitation
, development
or redevelopment of the urban renewal area by private enterprise.

(b)

If the urban renewal area consists of an area of open land to be acquired by the municipality, the area shall not be so acquired unless:

(i)

If it is to be developed for residential uses, the local governing body shall determine that:

(A)

A shortage of housing of sound standards and design which is
affordable,
decent, safe and sanitary exists in the municipality;

(B)

The
There is a
need for
affordable
housing
or that
accommodations has been or will be increased as a result of the clearance of slums in other areas;

(C)

The
lack of affordable housing, the
conditions of blight in the area
and
or
the shortage of decent, safe and sanitary housing
cause or contribute to an increase in and spread of disease and crime and
constitute a menace to the public health, safety, morals or welfare; and

(D)

The acquisition of the area for residential uses
or affordable housing
is an integral part of and essential to the program of the municipality;

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114.

Condemnation.

(a)

A municipality has the right to acquire by condemnation any interest in real property, including a fee simple title thereto, which it deems necessary for or in connection with an urban renewal project under this chapter
, provided that the right to acquire property by eminent domain under this chapter shall not extend to property occupied by an owner for residential purposes or leased for current residential occupancy
. A municipality may exercise the power of eminent domain in the manner now provided or which may be hereafter provided by any other statutory provisions. Property already devoted to a public use may be acquired in like manner, provided that no real property belonging to the United States, the state or any political subdivision thereof, may be acquired without its consent.

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115.

Property acquired in project; disposition and use generally.

(a)

A municipality may:

(iii)

Retain the property or interest for public use in accordance with the urban renewal plan, subject to any covenants, conditions and restrictions, including covenants running with the land, as it deems necessary or desirable to assist in
providing affordable housing,
preventing the development or spread of future slums or blighted areas or to otherwise carry out the purposes of this chapter.

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116.

Property acquired in project; disposition to private persons; procedure; notice; proposals; contracts.

(a)

A municipality may:

(ii)

By notice published once each week for four (4) consecutive weeks in a newspaper having a general circulation in the community, prior to the execution of any contract to sell, lease or otherwise transfer real property and prior to the delivery of any instrument of conveyance with respect thereto under the provisions of this section, invite proposals from and make available all pertinent information to private
developers or
redevelopers or any persons interested in undertaking to
develop affordable housing or to
redevelop or rehabilitate an urban renewal area or any part thereof.

The notice shall:

(b)

The municipality shall consider all
affordable housing development,
redevelopment or rehabilitation proposals and the financial and legal ability of the persons making the proposals to carry them out. The municipality may accept any proposals it deems to be in the public interest and in furtherance of the purposes of this chapter. A notification of intention to accept a proposal shall be filed with the governing body not less than thirty (30) days prior to acceptance. Thereafter the municipality may execute a contract and deliver deeds, leases and other instruments and take all steps necessary to effectuate a contract in accordance with the provisions of W.S. 15
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115.

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120.

Taxes upon property; authorized division thereof.

(a)

Any urban renewal plan may contain a provision that taxes, if any, levied upon taxable property in an urban renewal project each year by or for the benefit of a municipality in the state shall be divided as follows:

(i)

That portion of the taxes which would be produced by the rate upon which the tax is levied each year by or for each of the taxing agencies upon the total sum of the assessed value of the taxable property in the urban renewal project as shown upon the assessment roll used in connection with the taxation of the property by the taxing agency, last equalized prior to the effective date of the urban renewal project shall be allocated to and, when collected, paid into the funds of the respective taxing agencies as taxes by or for those taxing agencies on all other property are paid (for the purpose of allocating taxes by or for any taxing agency which did not include the territory in the urban renewal project on the effective date of the project but which territory had been annexed or otherwise included after the effective date, the assessment of the county last equalized on the project shall be used in determining the assessed valuation on the taxable property in the project on the effective date)
. For the purposes of this paragraph, the assessed value of the taxable property in an urban renewal project shall mean the aggregate value of all property located within the geographical boundaries of the project and notwithstanding any of the requirements imposed under title 39, chapter 13 of Wyoming statutes, the assessed value of the taxable property in an urban renewal project as provided under this paragraph shall not be modified during the term of the project
; and

Section 2
.

The department of revenue shall promulgate rules necessary to implement W.S. 15
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120(a) as amended by this act, including any amendment of rules previously promulgated as required by W.S. 39
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103(b)(ii).

Section 3
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(a)

Except as provided in subsection (b) of this section, this act is effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.

(b)

Section 1 of this act is effective July 1, 2025
.

(END)

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HB0068