Governor seeks ways to boost affordable housing

CHEYENNE — Some cities and counties across Wyoming have already begun tackling the issue of affordable housing in their areas, and lawmakers are working to figure out how state government fits into possible solutions.

The affordable housing crisis affects counties across the Equality State, but that doesn’t mean a one-size-fits-all approach will solve the problem. Barriers to affordable housing are unique to every city and county, which is why experts say this issue is best handled at the local level.

However, that doesn’t mean there isn’t a role for state government in coming up with or supporting creative solutions.

Special projects adviser Chad Auer from Gov. Mark Gordon’s office told members of the Legislature’s Regulatory Reduction Task Force on Wednesday there were avenues they could take that would support local community efforts.

“There are so many good ideas going on in Wyoming,” Auer said at the task force’s meeting in Jackson. “We just need to clear the path for them.”

Statutory changes needed?

Auer first brought to lawmakers’ attention the State Protest Petition statute — a law that he said “sends the wrong signal” to out-of-state developers. This statute allows adjacent landowners to effectively veto any development project near them with 20% of the vote.

This means that any proposed affordable housing development projects vetted by staff, planning commissions, the public and city or town councils could be shot down by just 20% of neighbors

within a certain area.

This veto could be overridden by a super majority vote of the city council, but Auer said “that’s a really tall hurdle.”

“We need to have a conversation about that as a state,” Auer said. “Is that really the best signal to send to the free market?”

He suggested taking this petition out of state law and allowing it to be handled by local municipalities.

Laramie County Commissioner Gunnar Malm brought up a 2021 Wyoming Supreme Court decision during the discussion, where the county Planning Commission rejected plans by Asphalt Specialties, a company based out of Colorado, to break ground for a gravel mine on not-yet-zoned land, despite meeting all the requirements.

The state Supreme Court decided the commission’s rejection of the plan was “arbitrary and capricious,” giving Asphalt Specialties the green light to move forward with its project.

“How is a local jurisdiction not arbitrary and capricious in allowing something that meets all the criteria of their rules, but then fails at a council or commission level, based on a petition or populism?” Malm said. Auer said this situation illustrated some of the complexities behind this petition. He believed there was a way “to weave through that” that would address anything arbitrary and capricious.

Another avenue available to state lawmakers, Auer said, was to consider the licensure and certification requirements for professional tradespersons, such as electricians, plumbers, roofers and drywallers.

The licensure and certification process and requirements vary county by county, which creates hardship and confusion for these tradespeople. The task force discussed the possibility of reciprocal licensure last year, and Auer encouraged lawmakers to prioritize those discussions this interim.

The third option, he said, was to prioritize state funds in support of local community projects.

“To be fair, there are some communities that don’t want any growth,” Auer said. “And that’s their prerogative. But there are also a number of others on that list that really do want to be proactive.”

Violating the ‘307 rule’

The issue of affordable housing affects everyone, including state officials. Auer and members of the task force admitted their own children are leaving the state in search of affordable living and robust communities.

Auer explained that he told his kids they could live anywhere that had a 307 area code, which he referred to as his “307 rule.”

“All of my kids are on their way out, violating rule 307,” Auer said, “and it’s in part due to the lack of affordable housing.”

Wyoming Business Alliance President Renny MacKay said a University of Wyoming exit survey reported that 70% of its alumni leave the state. The governor is concerned with the under-supply of workforce housing, Auer said, which is choking economic development efforts.

“It’s becoming increasingly difficult, if not impossible, for teachers, firefighters, snowplow drivers, nurses, essential workers to live and work here,” Auer said. “That is a significant concern for the governor.”

Gordon tasked Auer with speaking with city officials, county commissioners, out-of-state businesses and other stakeholders to understand what’s being done about the housing crisis. The governor wants to honor local control and give communities as many tools as possible, he said.

Auer said he found exemplary efforts in places like Cheyenne, Casper and Lincoln County. Under the leadership of Mayor Patrick Collins, the city of Cheyenne is working to reduce barriers to housing development with tools such as urban renewal and tax increment financing, he said.

“They will likely have some suggestions on how you all might consider changing the current state statutes when it comes to urban renewal and tax increment financing,” Auer said.

Casper is taking another look at its zoning laws, making sure they’re not so restrictive that it discourages developers, he said. Lincoln County has “an immediate housing issue,” and a working group is looking at barriers that are preventing economic development in mining.

MacKay said a key finding from the Harvard Growth Lab analysis is that Wyoming’s housing market is inelastic. Building more expensive houses doesn’t help lower costs, he said. The issue is the lack of construction of more affordable housing, such as starter and workforce homes.

“Another big part of the finding is we are over-regulated,” MacKay said, referring to both the state and local level. “It’s the cost per door that our regulations put in place. Those are the market (failures) I would point to.”

Task force members will dive deeper into affordable housing efforts underway in local municipalities during their Thursday discussion.

This story was published on May 30, 2024.