Nearly six months have passed since Utah Governor Spencer Cox signed House Bill 572 into law. Designed to make homeownership more accessible for first-time buyers, the bill sets aside $300 million in state surplus funds that developers can use to reduce the cost of entry-level homes.
Steve Waldrip, Senior Advisor to Governor Cox on Housing Affordability and Innovation, shared that the first project under HB 572 has been approved in Weber County.
After listening to local developer Jed Nilson of Nislon Homes, the WEber County Commission gave the green light. "The County Commission approved an additional 275 units. There was an original development agreement for 725 units," explained Waldrip. "So they got a 275-unit bonus. All of those will be single-family detached homes for sale under $400,000."
The new homes will be restricted for ten years, ensuring ownership and occupancy by individuals who live and work in the community.
"People live out here because they want the wide-open spaces," said Weber County Commisssioner Jim Harvey, who initially opposed developer Nilson's project expansion.
But Harvey's perspective shifted dramatically after he had a dream that recalled his own upbringing in a modest home. "Everybody likes that bigger, nicer house, and they all aspire to be there. And I wanted to be there, but one night I had a dream," Harvey recounted. The dream reminded him of growing up in a two-bedroom, one-bath home, surrounded by neighbors who were electricians, school teachers, and police officers. The next day, he met with Nilson who committed to building homeowner-occupied, detached homes. A key factor that led to Harvey's support.
A significant statistic that influenced Harvey's decision was the comparison of net worth between renters and homeowners. In 2022, the median net worth for renters was $10,400, compared to $396,200 for homeowners, a difference of over 3,700%, according to the 2022 Survey of Consumer Finances.
Waldrip emphasized the generational wealth that homeownership can create. "How many chances do you get in your lifetime to create, literally, with a stroke of a pen, $100 million of net worth, of value in homes, in families, in your community," Waldrip stated. "You're creating generational wealth in a way that is completely unique."
Harvey echoed this sentiment, " We have an opportunity now for the next generation to create some wealth within their households, to buy their own home."
Developer Jed Nilson says he has been dedicated to building affordable homes for first-time buyers. "Because owning a home is the number one way for people to gain wealth," Nilson explained. His efforts helped shape HB 572, and he has been pivotal alongside Waldrip, State Representative Robert Spendlove, and others who supported the vision. "If I can make a difference while my company still makes money, then I have a real purpose, and my company has a real mission," Nilson added.
To access thew state surplus funds, developers must agree that 60% of the homes will be starter homes under 1,400 square feet and priced between $300,000 and $400,000. While developers can typically earn more profit on larger homes, Nilson emphasized the importance of supporting the community. "It may not be the best financial choice, but it's a dream come true for me because I know that I'm helping the community," he said.
The first starter homes are set to begin construction within the next two months on 240 acres in Pleasantview, West of I-15, with completion expected in the first quarter of next year. Nilson, Harvey, and Waldrip hope their efforts will inspire other developers and counties to achieve Governor Cox's goal of 35,000 new starter homes in the next five years.
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