State lawmakers appear poised to pour a sizeable amount of money into tackling Utah’s affordable housing crisis as they prepare to receive more than $ 1.5 billion in federal coronavirus funding this week.
But their potential investment seems far less than the $ 320 million proponents were looking for.
That sum – 20% of the state’s discretionary resources under the American Rescue Plan Act – is the amount that the Utah Commission on Housing Affordability and a statewide coalition of housing authorities, nonprofit developers, and service agencies are seeking.
However, a document from the State Office of the Legislative Fiscal Analyst released ahead of Wednesday’s special session shows that lawmakers will likely set aside only a fraction of that demand – $ 70 million – for housing and homelessness.
That amount, tentatively approved by lawmakers during a meeting of the Executive Appropriations Committee on Monday, would build on the $ 50 million lawmakers approved for those needs during the spring legislature. And that could mean a growing understanding by lawmakers of the affordable housing issue, which received just $ 5 million in government funding in 2020 as part of the pandemic.
Proponents, however, say they are not satisfied with the $ 70 million figure, which some see as a missed opportunity to make a one-off investment in replenishing the state’s stock of housing at reasonable prices.
“It’s an afterthought,” said Robert Vernon, executive director of the Provo City Housing Authority and advocate of the 20% housing proposal, in an interview with The Salt Lake Tribune. “And yet everyone knows [affordable housing] is a crisis. “
Other potential investment areas include $ 280 million in water, including the conservation and safety of sewage and dams. $ 115 million for the state’s COVID-19 public health response, including pandemic prevention and vaccine distribution; $ 80 million for education, including distance learning, summer and extracurricular capacity; and $ 175 million for broadband access.
But Vernon argues that some of these needs are less important to the future of the state than its void in affordable housing.
“We’re spending a billion on infrastructure, I mean, not everything is badly needed,” he said. “It depends on whether you want to put people first or put things first. I think housing is more important than roads, bridges and broadband. “
“One priority among many priorities”
Proponents of affordable housing have recognized that they are not the only ones asking for some federal funding.
“Everyone and their dog go to Executive Appropriations and ask about this and that project and this and that specific one,” remarked Senator Jake Anderegg, R-Lehi and the co-chair of the Affordable Housing Commission, in an interview.
However, he hoped lawmakers would consider housing construction a “high priority” – especially because that’s one of the things the ARPA money was approved for.
There is a long list of ways the federal dollar, which came from the $ 1.9 trillion spending plan approved in March by Congress, may and may not be used. For example, the legislature cannot spend the money either directly or indirectly on tax cuts. However, you can use it to help industries that have suffered economically from the COVID-19 pandemic, as well as projects related to water, sanitation and broadband.
In prioritizing the distribution of funds, heads of state have drawn up a list of 10 “guiding principles” to guide their spending. The top item on the list calls for a focus on long-term challenges for the state, while others highlight spending on projects with nationwide benefits or those that would otherwise not be funded.
ARPA Guiding Principles from Utah Legislators
Rep. Steve Waldrip, R-Eden, said at a Housing Commission meeting last week that lawmakers “receive $ 30 million to $ 50 million in inquiries every day,” and that there are “many wonderful ways to spend all that money “.
However, he argued that the state’s affordable housing crisis posed “a clear and present threat to the success and prosperity of our state and the citizens of our state”.
“This is a priority among many priorities, but it has a significant impact on the daily lives of many Utahns – much more so than some of these other one-off projects for a limited group of individuals, citizens of our state,” he said. “I think that has a much wider scope in almost every corner of our society.”
Proponents know their demand for $ 320 million is huge, but say the need well exceeds that number, in a state that is estimated to be missing at least 53,000 units affordable for average income residents.
Vernon of the Provo City Housing Authority estimates that the actual investment needed to fill the Utah housing gap over the next 10 years will be about $ 1.5 billion in Utah County and about $ 2.5 billion Dollars in Salt Lake County.
Andrew Johnston, former Salt Lake City Council member and new director of homelessness and public relations for the city, also said the 20% suggestion is “not too high”.
“I think it would be difficult for us to overestimate the needs and the costs involved,” he said at the commission meeting. And he recommended that the Board come up with a proposal that “goes as high as possible – because I think we’ll be scratching the need to some extent”.
(Rick Egan | The Salt Lake Tribune) New building at Ridge, North Salt Lake, on Monday, February 1, 2021.
“We are not really on the rise”
Legislators say it is unlikely that all of the money will go directly to affordable housing in this week’s special session. Instead, they expect to occasionally set aside most of the funds to figure out how to spend them later, and possibly wait until next spring to pinpoint specific projects.
Senate President Stuart Adams said this is an effort to ensure that all federal funds are spent “appropriately and wisely”.
“I don’t think there is enough time before the special session to have all the information we need for an appropriation,” he said in an interview, but added that “affordable housing will be a focus and will be something that we want. ” deal with.”
House spokesman Brad Wilson also said last week that he expects money on affordable housing to be set aside and spent later, and that lawmakers plan to use the already approved $ 50 million from July when it goes into effect step to admit until next spring. ”
“I think we will likely invest significantly more in this space next spring,” he added.
If housing advocates ultimately lag well below their $ 320 million dollar, Anderegg said lawmakers still have the option to make a “remarkable” investment that could go a long way toward meeting the state’s challenges. In programs that draw appropriate funds, there is “a multiplication effect” for every government dollar.
Anderegg said the drive for affordable housing will extend well beyond this special session.
But Vernon said the state’s affordable housing advocates have not given up on this round of funding and plan to continue pushing for a larger investment in one of the state’s biggest challenges.
“We’re happy to have it when it’s $ 70 million,” he said. “But when we say, ‘This is great,’ then we are not really moving up and trying to do as much as we can to solve the problem.”
– The grandstand reporter Bryan Schott contributed to this report
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