The following testimony was given by Zachary Schofield, a policy research analyst at Sutherland Institute. It was presented in support of SB 34 – Affordable Housing Modifications before the House Economic Development and Workforce Services Committee of the Utah Legislature.

My name is Zachary Schofield with Sutherland Institute, and I am here to speak in support of SB 34.

We encourage you to remember that the housing issue is about people – low-income households finding it more and more difficult to pay rent; households who find that the dream of owning a home will have to be realized later and later in life. To put those human realities into numbers, in Salt Lake, Utah, Davis and Weber Counties, the median home price rose by an average of 47 percent between 2010 and 2017, while the average wage in those counties rose only 14 percent.

Housing is a unique industry – carried out by the private sector, significantly directed by local government zoning codes, and influenced indirectly by state funding and regulation of transportation infrastructure. This relationship often creates a desire to look toward large government solutions when housing becomes unaffordable. SB 34 resists this pull and provides a balanced approach of incentivizing communities to work together while honoring local innovation.

We recognize there are legitimate policy questions about whether this bill has the teeth to drive improvements to availability of affordable housing, and these should receive due consideration. However, the value of this bill is that it properly balances the paradigm of housing policy. SB 34 recognizes the connection between state transportation funding, the housing market and cities’ zoning decisions. It also recognizes that housing is an inherently city- and community-based issue that requires flexibility at the local level.

Under SB 34, city leaders will be able to respond to the desires of their constituents in encouraging affordable housing through a large number of options available – whether it be multifamily units, accessory dwelling units, relaxed parking requirements, or another affordable housing option. By targeting TIF funding, which is typically used for expansion projects, SB 34 wisely links a city’s need for expanding transportation infrastructure with accommodating growth in housing.

SB 34 does not co-opt the private sector or make the state government the de facto authority on housing choices. But it does recognize that the state, in addition to local government and the private sector, influences the supply and affordability of housing, and therefore public policy should enable and encourage each sector to work together to promote affordable housing.

For these reasons we urge your support for this bill.

Thank you for your time.