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Affordable housing sought in Dixie

Committee seeks more tax credits for low-income projects

By Nancy Perkins
Deseret Morning News

ST. GEORGE — Washington County is facing an "affordable housing crisis" that needs immediate attention, according to members of the Dixie Area Workforce Housing Affordability Committee.
In a letter sent to the Utah Housing Corporation, the committee requested help in the form of more tax credits for low-income housing projects in the county.
"Over the past couple of years, we have noticed that there are fewer and fewer tax-credit projects being built in Washington County," said the letter, which was addressed to Bill Erickson, president of the Utah Housing Corp. "When we ask some of the developers why they are not continuing to develop properties, their answer is always that they cannot be competitive any more."
The committee members include elected representatives from Washington County and the cities of St. George, Santa Clara, LaVerkin, Ivins, Washington and Hurricane. The committee is part of a larger group committed to finding solutions to the affordable-housing problems facing county employers and residents.
Washington County is the fifth-fastest-growing county in the nation, with a year-over population increase of more than 8.25 percent, according to the U.S. Census Bureau. Many elected officials who worry about providing and paying for public services see that statistic as a double-edged sword.
Members of the St. George City Council cited area growth as the biggest factor in their vote to increase residential- and commercial-development impact fees.
"Who should pay for this growth?" Ed Bacca, a St. George resident, asked during a public hearing on the impact fees. "Not homeowners who already paid for the current impact of development."
But Councilman Larry Gardner said he was troubled by Bacca's comment.
"St. George has always been built on a 'pay it forward' attitude," Gardner said. "I think we have to be careful saying we as individuals don't have any obligation to others who may want to live here. We've talked long and hard about attainable housing, and $10,000 may make the difference on whether (prospective homeowners) can get financing for a home or not."
According to the affordability committee's letter, construction costs in Washington County have increased and the labor pool is shrinking. The vacancy rate for rental housing is currently 1.7 percent, while the rate for the rest of the state is just over 4 percent.
Compounding that problem is a boom in real-estate prices, with the average cost of a home shooting up more than 36 percent during the first quarter of 2006 to $327,322, according to the Utah Association of Realtors.
Land prices have also soared, from $50,000 per acre five years ago to more than $225,000 per acre and higher today, depending on the location of the property. Only 18 percent of Washington County is privately owned, which means there is a limit to what can and can't be developed, the committee's letter said.
"We truly believe that our housing problem is unique and larger than in any other area of the state. We hope that we can find out how to provide a means for getting the available resources to where they are needed the most," the committee's letter informs Erickson, who was not available for comment.


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