State law forbids local governments from requiring affordable housing as part of development agreements unless it’s individually negotiated.
Usually, Heber City offers the developer an option to pay a fee in lieu, or money instead of affordable units. That money can then be used to build the housing elsewhere, often closer to services like grocery stores or transit stops.
Current code directs that any fees in lieu automatically go to the Wasatch County Housing Authority, not Heber City. City attorney Jeremy Cook said at the Heber City Council meeting May 20 changing the ordinance will give Heber more flexibility to invest directly in affordable housing projects.
Despite assurances that the city is committed to working with the housing authority, some board members protested the move, saying it would weaken the countywide body.
Kent Shelton, a member of the housing authority board, said he was worried the change would leave the housing authority toothless, since Heber is such a major player.
“I would just caution our city council not to jump the gun, to say, well, I would like to see us work together – rather than have everybody pull up stakes and say, we’re taking our dolls and dishes and going to a different sandbox,” he said.
Heber City leaders say they’re not abandoning the housing authority. Cook and others hinted at work happening behind the scenes for a future affordable housing project.
“When some of this comes to fruition, I think maybe the housing authority is going to recognize why we did this, and benefits that are going to come from this, and hopefully money that’s going to flow back to the housing authority,” Cook said.
Kendall Crittenden, a Wasatch County councilmember and the chair of the housing board, said he wasn’t convinced.
“I don’t understand how that same thing can’t happen within the housing authority,” he said.
City leaders said they can’t share what’s being discussed in closed session. But they promised Crittenden that Heber’s intent is to work closely with the board, not leave it behind.
City Councilmember Mike Johnston said to address the affordability issue in the valley, all the local governments need to work together to achieve the area’s housing goals.
“It’s a county problem, not a Heber City problem, though we are a major part of the solution,” he said.
Crittenden said Heber could push harder for more affordable housing in new developments, referencing annexations north of downtown in the past several years.
“After the legislature a couple years ago, bless their hearts, took away our ability to charge fee in lieu or require affordable housing, I sometimes wonder if you forget that if somebody’s annexed in, you can ask about anything of them – and I don’t think you always ask as much,” he said.
One thing both entities agree on is that the valley is reaching a size where the current resources dedicated to addressing affordable housing aren’t sufficient.
Johnston noted there isn’t ongoing funding for the housing authority, the way there is for county services like the library or the fire district. It got money from fees in lieu prior to the change in state law, but that money is dwindling.
He proposed adding an incremental property tax, so the wealthiest county residents contribute more toward affordable housing.
“I think that makes a real good sense, because people that own a lot of wealth – Tuhaye, Victory Ranch, whatever – probably don’t really work, [don’t] work here in our county. They demand services, and they don’t provide any. You go down to the lowly people – they’re living in the apartments, they’re providing all the services, and they don’t demand the same services. So that’s, to me, what is fair.”
Another possible solution is hiring a director for the housing authority or contracting with experts dedicated to affordable housing, to help meet the needs of the growing community. That would likely require the housing authority to seek funding from local governments around the county.
The Heber City Council voted 4-0 to approve the change to the fee in lieu ordinance.
