UT SB0228

Community reinvestment agency project areas are automatically dissolved when the dormancy period ends (6 months after the project area funds collection period ends), or 8 years after agency approval if the collection period never started.

Agencies may extend a dormancy period once for up to 2 years by holding a public hearing and adopting a resolution describing the project area progress and unique circumstances requiring the extension, followed by community legislative body approval.

Unexpended project area funds remaining at the end of the dormancy period must be returned proportionately to each taxing entity, rather than being used by the agency as previously allowed.

Project areas that began a dormancy period before May 6, 2026 are dissolved 5 years after the dormancy period began, with unexpended funds distributed to taxing entities.

The bill takes effect May 6, 2026, and removes the definition of "active project area" while adding new definitions for "dormancy period" and "dormancy period extension hearing."