Many discussions lately have been about the Housing Crisis or Housing Shortage. The Utah governor has even talked several times on the topic. According to an October 2022 article on KSL.com, Utah, Governor Cox says housing is the number one issue. And that supply and demand are to blame for part of it.
The article “Housing market correction won’t fix Utah housing shortage” (Katie McKellar, Desert News Oct 21, 2022) elaborates on this.
Asked if he’d (Gov. Spencer Cox) like to see the Utah Legislature tackle additional policy decisions to deal with Utah’s affordability crisis, the governor said he and legislative leaders are working on some proposals through the Unified Economic Opportunity Commission.
“One of our major focus areas is reducing the cost of housing in this state,” Cox said. “It is very, very simple — I will never tire of saying it — it’s supply and demand. This is economics 101. We have more demand than supply, and anytime that happens, the price of housing is going to go up.”
While home prices are correcting, Cox said the reason that’s happening “is because the Fed has decided … we’re going to artificially destroy demand” by upping the key borrowing rate, which has an indirect impact on mortgage rates.
“Artificially destroying demand,” Cox said, “(isn’t) a great way to improve housing outcomes in Utah. So what do we have to do? Well, it’s very simple. We have to increase supply.”
That’s easier said than done, especially since city leaders largely control what types of housing get built in their communities — and if higher density projects are proposed, residents fearful of impacts to their neighborhoods often pack council meetings in protest. Meanwhile, homebuilders are often at the whim of market conditions and their bottom line.
Cox said his administration is currently working with the Utah League of Cities and Towns to hash out some new policies ahead of the Utah Legislature’s 2023 session, set to begin in January.
At this point, I want to point out that the largest corporate donations to the Gov. Cox campaign were from Zions Bancorporation ($50,000), Deseret Power ($25,000), and Price Realty Group ($25,000). According to its 2023 first quarter update, Zions Bancorporation has $10.7 billion or 19% of its portfolio in consumer real estate loans. They also have $10.2 billion, or 18% of their loan portfolio, in commercial real estate loans. Price Realty Group is “founded upon two real estate platforms: development and acquisitions.” They are a “multi-generational commercial real estate development and investment company.”
City Councils and the residents of those towns are not to blame for the lack of housing and are not the ones that are stopping the increase in supply. There is no shortage of buildable units, especially not in Eagle Mountain.
According to a recent Eagle Mountain City Staff report, Eagle Mountain has over 17,080 units approved and waiting for developers to build. And those units contain a variety of housing types and densities. Only 62% of the approved units are Single Family dwellings.
Eagle Mountain does not have an approved unit supply shortage. It has a developer building shortage. If Eagle Mountain had 10 housing units finished every day of the year, it would take over 4 years for the unit supply to be built.
The Eagle Mountain report also indicated that single-family detached homes are the most desirable housing unit and that the key to affordability and attainability is a high demand for small/standard lots.
During the 1787 Constitutional Convention, I think that Benjamin Franklin said it best when it comes to money and power being a motivating factor in politics.
“Sir, there are two passions which have a powerful influence on the affairs of men. These are ambition and avarice; the love of power, and the love of money. Separately each of these has great force in prompting men to action; but when united in view of the same object, they have in many minds the most violent effects.” Franklin continues, “It will not be the wise and moderate; the lovers of peace and good order, the men fittest for the trust. It will be the bold and the violent, the men of strong passions and indefatigable activity in their selfish pursuits. These will thrust themselves into your Government and be your rulers. “
When you have developers placed in a situation where they have the money and the power to control the market, they will take their selfish pursuits and maximize their profits. We don’t have a housing crisis in Utah; we have a developer crisis in Utah. We have allowed developers to control our law-making processes, and in turn, it has created an environment where they can control and manipulate the supply of housing to their monetary advantage.
The real estate industry in Utah is the most influential interest group in state and local politics. According to an article by Eric Peterson (March 2023), “The Utah Investigative Journalism Project identified 20 lawmakers involved in real estate either in development, property management, investments…” In the Senate, that accounts for nearly 40% of its chamber. Senate President Stuart Adams has ownership in 14 development-related businesses. The Senat Budget Chairman, Jerry Stevenson has a stake in two real estate investment companies. House Speaker Brad Wilson is the CEO of Destination Homes. Majority Leader Mike Shultz is a developer as well, and owns multiple apartment complexes.
And if that is not enough, in the 2020 election year, the Utah Realtors Association PAC spent nearly $1.5 million in campaign donations, consulting, data, and direct mailings for industry-friendly candidates.
So, how do the legislators that represent Eagle Mountain stack up? Are they also heavily invested in the development industry?
You can see who developers have contributed to Eagle Mountain politics by searching the Cedar Valley Sentinel Contribution Database. We have written a few articles on this topic. The developer of Firefly Project (Pole Canyon) has contributed $23,000 dollars to EM Elected Officials since 2003. Show Me The Money – Campaign Contributions – Westmoreland (2017)
Not all members of Eagle Mountian or the Cedar Valley are represented by the same people. Eagle Mountain is split between two House Districts (50 and 51) as well as two Senate Districts (11 and 22).
House District 50
Stephanie Gricius (Entrepreneur)
- iPro Reality Network – Real Estate Agent, listing homes and assisting buyers
House District 51
Jefferson Moss (Investments)
- University of Utah – Executive Director – Innovation District
Senate District 11
Daniel W. Thatcher (Independent Electronics and Low Voltage Wiring Contractor)
Senate District 22
Jacob L. Anderegg (Sales Manager)
- Think Utah Consulting, LLC. – Infrastructure Development Strategy Consulting
- Skyline Investment Holdings, LLC. – Currently holds no assets, anticipated future real estate holdings.
Instead of seeing real-world solutions to problems, we see legislation intended to help developers keep the status quo and increase developer profits.
For example…
SB295 from Senator Dan McDay (a real estate lawyer) would allow developers or developer groups to become government entities, including issuing bonds and levying taxes on residents to pay for the bonds. It also would allow developers to exercise eminent domain and condemn property. This bill made it out of committee and onto the senate floor but was circled and put aside.
SB174 from Senator Lincoln Fillmore (small business owner) changes the local land use and development revisions – enacts a new process for subdivision review and approval
HB564 from Representative James Dunningan (insurance agency owner) allows limited-use infrastructure districts to issue bonds, enter into interlocal agreements, impose fees and fines, and levy property taxes.
Here is what one resident of Eagle Mountain has to say about SB295
“As a Utahan and resident of Eagle Mountain, I write urging you to vote against this bill which would allow landowners and developers to form their own special districts in order to finance infrastructure projects with the supposed aim of helping developers cut down on housing costs and grant them authority to establish taxes or assume other powers properly reserved for local governments with accountability to citizens!
I understand the need for affordable housing but giving land owners and developers such unprecedented authority usually reserved for local governments is a frightening scenario that holds no consideration for the needs of and consequences for resident citizens! It basically would create a private government entity with no accountability to local governments and residents and no consideration for the long range municipal goals and planning. It could also be viewed as taxing without representation or recourse for citizens.
This would be a nightmare beast for residents from which awakening would be nearly impossible. I urge you to find better ways to achieve your affordable housing goals than to create quasi-governmental bodies run for profit with virtually no accountability to local governments or taxpayers.
Please do not allow this power grab to move forward. “
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Mike Kieffer is an IT geek by hobby and trade, with a BS in Information Systems & Technology. He is a proud father of 10, a grandpa, an author, a journalist, and internet publisher. His motto is to “Elevate, Inspire and Inform”, and he is politically conservative and a Christian. Mike has a passion for technology, writing, and helping others. With a wealth of experience, he is committed to sharing his knowledge with others to help them reach their full potential. He is known for his jackassery or his form of self-expression that encourages boldness, creativity, and risk-taking. It can be a way to push the boundaries and challenge traditional norms, leading to creative solutions and positive change.