We Just Don’t Get No Respect, Know What I Mean

December 11, 2023 by Nicole Masson
State

December 7, 2023 Wilf Sommerkorn, https://utahlanduse.org/blog/

I’ve been noticing the attention that’s been cropping up around the country given to places that are actively reforming their local land use regulations, primarily for housing affordability, but for other reasons as well.  Montana has particularly gotten noticed for the restructuring of their state land use code in their last legislative session, but there have been plenty of others who have taken actions, included us right here in Utah.  And while many of these other states efforts have been noted, Utah’s actions are missing.  To wit, take a look at this story in Bloomberg’s CityLab, where the activities in these states were cited:  California, Montana, Vermont, Rhode Island, Texas, Florida, Arkansas, Maine, New Jersey, North Carolina, Ohio, Oregon, Washington, Wisconsin, New York, Colorado, Arizona, and even in New Zealand.  Any mention of Utah?  Not a word!

And yet, as we all know, plenty has been going on here in the Beehive State, it’s just been much lower key and more cooperative than what has been happening elsewhere (see previous posts). And that has probably been a good thing, allowing for changes that are more consensual and more likely to be implemented.  It just doesn’t make for good stories that attract attention, like in California or Colorado or in many other places

Well, hang on.  Things are about to get much more attention-worthy here.

On Tuesday, Governor Spencer Cox announced his 2024-25 budget proposal, and the dominant message in the press event held in a housing development in West Haven was, “We Need More Housing, Especially Starter Homes – Fast!”

Plenty of numbers were unveiled at the announcement – this was, after all, about the Governor’s proposed budget for the state.  He is proposing substantial investment in housing and infrastructure programs – WFRC’s newsletter summarizes  that well  https://myemail.constantcontact.com/Governor-s-Budget-Released—November-WFRC-Government-Affairs-Update.html?soid=1118153086076&aid=m6ZRilfCekc – which I have been saying for a while now that if we want to have any hope of making some impact on housing affordability in the short term, it’s going to take financial incentives/support.  So this is good to see, we’ll just have to see what the legislature does with this.

But the overriding tone of the budget announcement by Gov. Cox was all about the need to get everyone pulling together to see the increase in numbers of starter homes in the state.

Cox, joined by Lt. Gov. Deidre Henderson and Planning and Budget Director Sophia DiCaro, presented a proposal for the state to build 35,000 starter homes by 2028, catalyzed by what Cox calls the Utah First Homes program.

This initiative would seek to ease Utah’s housing crisis and forms the core of Cox’s budget recommendation for fiscal year 2025, which is titled “Utah Home.”

Gov. Cox continued his call for involvement from all actors in the housing markets.

“Just a message to our mayors and city council members out there, and to the good people of Utah: we all, every single one of us, needs to be involved in making this happen,” Cox said  “I know every city is different, every city is unique.  Some cities are mostly built out, but there’s infill opportunities within those cities.”

“I hope that there will be a little less NIMBY-ism around around these neighborhoods where there are starter homes for our kids and grandkids,” Cox said Tuesday.

Another challenge for the Cox administration could be getting developers on board with the governor’s plan.  As Cox pointed out at the news conference, large homes and rental properties … are often more profitable for builders.

The Deseret News Editorial Board, in an editorial yesterday about the proposed Utah Home budget and program, said,

Cooperation, persuasion, old-fashioned cajoling and even political pressure will be needed to bring about much of the governor’s budget agenda.

Cox said he already has had many meetings with the League of Cities and Towns, local governments and developers regarding starter homes. He has met with state lawmakers to hammer out goals and reconcile philosophies.

This is the type of hard work that leads to positive outcomes.

A few days prior to the budget unveiling, Gov. Cox had meetings with representatives from local government, from the housing industry, and others to make them aware of his intended policy priority and encourage them to work together and with the state to make it happen.  A local government rep told us that at the meeting, Gov. Cox in essence said he hoped the cities and counties would work with all concerned to make starter home availability better.  He then warned them, saying if they didn’t, the other players would find a way to do it without them.  To the building industry, Gov. Cox reportedly said that starter homes in Utah need to have a price of about $300,000.  The industry reps went through their cost factors, indicating that right now, under current conditions, that just wasn’t possible – not without other kinds of assistance and accommodation.  The Gov said everyone needs to work to make that happen.

To facilitate and coordinate the various actors that need to be involved in the Utah Home budget/program, Gov. Cox also announced:

… the creation of a new position within his office, that of housing innovation adviser — a full-time state employee tasked with engaging stakeholders on all sides to advance a comprehensive housing strategy for Utah. It’s a similar strategy to the state’s effort to help the homeless population by having a state director coordinate between the state and cities.

Cox reached out to both the Utah League of Cities and Towns and homebuilders for a list of preferred candidates for the job. Only one name appeared from both camps, he said: former state Rep. Steve Waldrip.

Waldrip, a former co-chair of the state Commission on Housing Affordability, will take on the role of working with and coordinating the housing affordability groups.  (Waldrip was named Elected Official of the Year by APA Utah a couple of years ago, and spoke at several ULUI and APA conferences).

You may recall that the state legislative audit on Housing a couple of weeks ago (see the Nov. 15 blog post), in its concluding recommendations, said that the state should take a bigger role in setting statewide housing policy.  This will also be a role to be taken up by Waldrip.

“His role will be to facilitate the development of a statewide strategic housing plan to guide policymaking to make sure every Utahn can continue to call Utah home,” Cox said during the press conference.

Cox did plenty to call out local governments on the housing affordability issue.  Waldrip carried that tone over to the developer side, saying,

“We’re asking (developers) not to lose money, but potentially not make as much money and to still be profitable, but not to maximize profit to the detriment of our state,” Waldrip said.  “And I think that’s an ask that is not hard for me to make, to say this is for the benefit of the community.”

So.  That, along with the various legislative initiatives already underway (see the Oct. 16-20 blog posts), gives plenty of cred to the fact that interesting things are happening in Utah on housing affordability and land use reforms, right?

Wait, we’re not done yet!

Also on Tuesday, the Salt Lake City Council, according to the Trib headline, embraces ‘monumental’ new incentives for affordable housing after yearslong debate.  On a 6-1 council vote Tuesday night, the new land use regulations:

(Provide) incentives aim to promote infill and more so-called missing middle housing by letting property owners build more dwellings per acre, add height and see expedited review at City Hall in exchange for guarantees some of the units they build will be affordable to residents with lower incomes.

All the councilmembers voiced at least some support for the changes.

“I know a lot of people are afraid about what changes this might mean for their neighborhoods,” said (Councilmember)Wharton. He told concerned residents to spend time in his District 3, which spans portions of the Marmalade district and The Avenues and a notable variety of housing.

“Single-family homes next to apartments next to condos next to townhouses next to historic mansions,” Wharton said. “You can have a neighborhood that has all of that and still has, you know, little stores and shops and restaurants that you can walk to.”

The new incentives, he added, would create “a similar and better result” in promoting housing diversity and mixed-income neighborhoods elsewhere in the city.

So.  There we go.  Not much worth reporting in the national media about what’s happening here in Utah, is there?

But I also gotta warn ya, the legislative session is shaping up to be … historic!