2019 UVU Social Innovation Challenge Kickoff


– We’ll talk a little bit
about the process there. So, that’s kind of fun things. We love to find ways to
get money for students. And then the second thing will be there are some competitions
that lead to Oxford, or to San Diego, if
you’re also interested in having some really good– (crackling drowns out speaker) So the Entrepreneurship
Institute is partnered with the Center for Social Impact and Change. We’ve partnered with various
other groups on campus and try to make this a good fun activity and an opportunity for
you to use the university to learn how to solve
problems by identifying means and hopefully be able to make a difference and change the world. So, Marissa is going to give
you now the fun details. (laughing) – Depending on what kind
of nerds you guys are, it could be fun, it could not be fun. It’s fun for me. So I’m Marissa I guess, I am the Learning Coordinator at the Center for Social Impact and I’m gonna talk to
you a little bit about systems thinking. So what these competitions are, at least the first part
of this competition, is essentially a competition of who is the best systems thinker. Has anyone ever heard of
systems thinking before? Woohoo, Mark right here. I know Taylor Bill in the back has but– (laughing drowns out speaker) He’s in the class that I teach
so I’m just calling him out. That was unfair, sorry. So we’ll talk a little bit about that but first, what is a system? Why are we even having this
competition in the first place? Why is it focused on systems? So like it says, a system is a set of interrelated components
that work together in a particular environment
to perform whatever functions are required to perform
the system’s objective. Kind of wordy, I thought
that was the best definition that I’ve found and by one of the foremost systems thinking experts. So this is what a system is. Can any of you think of
something that you’d be like, “Oh, this is a system.” Yeah? – [Male] The justice system. – Yeah, the justice system, perfect. Right, all these
different parts and pieces that go together to, that are
supposed to provide justice in our country, right? What else? – [Female] Roadways. – Sorry? – [Female] Roadways. – Yeah, roadways, yeah. You have cars, you have roads, yeah. – [Male] Signals. – Signals, lights, yeah, totally. Anything else? – [Male] I think something
as simple as a door is a system, you got
hinges, you got handles. – Yeah, I love the way that, grabbing you, like the different parts
and pieces that make the door open and close. – [Male] The whole aspect of that is. – Totally, it can be a
lot more like social, like a social system, like a
family or something like that. It could be a socio and ecological, all these things that you can put together and say, like this school system. So then what does that
mean for social impact? Why do you want to think in systems when it comes to social problems? Just like Mark was talking about, I mean if you’re thinking specifically about this year’s theme,
affordable housing, it’s not just developers, right, who are playing a role in this. If you change one thing,
they’re all these other parts and pieces to a system that are still making housing unaffordable, right? So you have to think about it from all these different approaches. From a government standpoint,
from a social standpoint, from a business standpoint, or else like from a consumer standpoint, right? You’re not going to be able
to really make much progress in a problem unless you
understand what vantage points there are and why those
different points of view are connected in the way they are. So then what does that mean, what does systems thinking mean, what does it mean to be a systems thinker? So this is just kind of a quick visual, I’m not gonna go through
a bunch of that today because we’ll have workshops
that we’ll talk about later where we’ll go more into depth
about those points of view. But one of the concepts about thinking, comparing and contrasting approaches, trying to understand how you
can visualize the problem. Are you thinking of a structure or are you thinking about a process? What are the power dynamics
within a social problem, right? There are so many questions
of things you have to consider because systems I feel like
particularly with bigger problems that a lot of
us will think about, they get pretty complex
but unless you dig in and try to understand, you
can’t solve through a problem strategically and from
enough different points. So when it comes to systems mapping, which is, that’s one of the
requirements for the competition especially for this first
part, the first semester, is you have to give us
a visual systems map and present about it. So what makes a systems map look like? These are some examples of ways
other people might do them. This is my personal favorite system map, I’ve ever seen because
it’s just so beautiful. And so it’s actually a
website and I can send this in the follow up email just
so you can look through it. So it’s mapping out the care system, basically saying the care
system of how we care for fellow human beings whether
it’s caring for children or caring for the elderly is broken. And so this group did years of
research into the care system and came up with this map. So it starts with the different players, the different kind of
institutional players, and you can go into Home
and it kind of digs into all of these questions that
can help you understand the care system from these
different vantage points. They’re really important in understanding why a care system is broken. And you don’t have to
build a website like this, I can’t imagine how
long this must’ve taken to develop and design but basically this is kind of
what you want to be thinking, who are the players, how
can I show that visually in a way that someone who
has never come into contact with this problem, could understand it. Mapping that out and making
sure that we’re explaining it. Systems thinking is a really
important way of looking at the world especially if
you do want to create change. And also if you want to be
like a group figure in general. It could really increase your
ability to basically solve problems because you’re
understanding a problem from a lot of different points of view
as opposed to just one kind of linear or from one perspective. Now Summer’s gonna chat
about what does this mean for the different competitions,
how does that work? – Okay, like Marissa said,
we have workshops built in to this so we’ll get in further depth but this is essentially how
the competition lays out. There’s three phases, so the
first phase is really that understanding the problem, a
lot of what we’re talking about when we covered in that phase. The second phase actually
splits into two directions. If you’re interested in more
of finding a solution to the problem then we’ll break off
and complete this kind of arm. If you’re interested in
more of the research, digging in deeper into
what’s causing this problem and furthering that map
then we would take you down the research track. So I’m just gonna walk us through it and if you have any
questions, go ahead and ask and we can just kind of lay it all out. So you’re all here, September
11th, the kickoff meeting. What we anticipate over
the next three months is you can put together a
team of however many student you want, typically it’s
three to six students. Choose a focus area, you can
choose affordable housing as your topic or you can
choose something else if you’re really passionate
about some other issue, that’s fine. We’re gonna provide
workshops around the issue of affordable housing so if
you don’t have a ton of time to do research on your own,
I recommend coming to those because we’ll be kind of
providing you with that background just throughout this process. But if you do have something
you’re super passionate about, you’re welcome to do that. We have these workshops built out, what we’re thinking of doing, we’re gonna do it every
Wednesday starting next week so we’ll have Community Housing Partners. Then the next week, we’ll do
an introduction to systems, more in depth of how that looks, then the Utah Home Owners
Association will come speak. The next week, we’ll
be looking at problems and players within systems. The next week, the Association
of Central Utah Realtors will come and then on the
23rd we’ll do map designs so how can you best map out the problem and then the last one
on the 30th of October will be government housing initiatives. Yeah? – [Male Student] Are you going
to be filming these sessions for students that have
class during this time? – Yes, I think that’s the plan. Yes, we will. (laughing) So yeah, we’re going to
just do it the same time, from three to four,
we’re going to have them in the Center for Social
Impact, in our conference room, so SE105B, we’re right
across from the ballroom, super easy to find. So we will do that, hopefully
we should be able to put them on the website, right? Yeah? – [Male Student] Just
making sure, Wednesdays, three to four like there is today? – Yeah. And those aren’t required,
they’re there to help you as you’re learning more about
the program or the problem and how to address it at the competition. On November 1, we’d like
you to officially registers and let us know, “Yes, I
have a team put together, this is our topic, and we’re
planning on coming to compete.” I will get that link up to you
in the follow up materials. Then you submit the materials
that you’re gonna present on November 22nd and
then the Phase One finals will be on December 3rd. There will be some judging
in between that time. If we have more submissions
than we can have finalists, there might be a paring down at that point but if you’re invited to the finals, it will be Tuesday,
December 3rd and this is where we’re gonna award prizes. So this first section, just
understanding the problem and mapping it out. You’ll receive $1000 for first
place, second place, $750 and we’ll do four
honorable mentions at $250. – [Vance] And that’s from
6:00 to 8:00 PM, right? – Yes, thank you, six to eight. Then again, at that point
is where we’ll branch off. If you’re interested in a
solutions, we’ll go up the top row and then the research on the bottom. Part of the reason they’re
different time tables is because of the final
competition at the end. They have different
requirements so we kind of need to space it out separately but right at the beginning
of the next semester, we’ll have a networking
event similar to this. Sometimes teams will kind
of shake up or reform so hopefully that we
can help facilitate that at that meeting. And we’ll pick the four final teams to go into this next phase. For solutions based, you
have January, February, March to develop and validate a
solution with a prototype including substantive
research and validation tests. Submit materials by April 10th. Their finals, solution
finals, will be April 29th and then a winner will be chosen there who can then prepare for that Phase Three of going to the Global Competition. The Global Competition for
the solution-based track is the one at San Diego for the Fowler Global Social Innovation Challenge. And that happens later in June. For the research track, we’ll regroup, so you’re gonna take what
you did this first part and kind of revise it
and kind of polish it up, work with an advisor to get it really good and then those materials will
get submitted February 1st and those finals will be March 5th and then all the materials
need to be submitted to Oxford by April 1st. So that one will push up. But again, you’re not
developing a new solution at that point, you’re kind of furthering what you did in the first semester. Does that make sense? Any questions? And then Oxford competition is April 15th. Okay? We have this graphic for
you, you can take with you. We also have kind of narrative written out exactly what the steps are
and I’ll pass that around as John’s talking to you
about the competition. – [John] Cool, thank you Summer. – [Summer] Yeah. – I’m John Westover, I’m a
faculty member of the business school and the organization
leadership department and the academic director of
the Center for Social Impact. Oh, I’m on the wrong computer. (laughing) I was wondering way it was going forward. Okay, so the culmination of
our UVU Social Innovation Challenge in this whole map
and timeline that Summer just laid out for you are
these two Global Competitions that we will be sending a
team of students to each, from UVU to represent UVU. We have the Global Social
Innovation Challenge at the University of San Diego
which is a beautiful campus, wonderful place to visit
and a tremendous competition where you’re gonna have
the opportunity to interact with just global experts
and talk to students from universities, top universities around the world and around the country. This one focuses on the
solution so like Summer said with that top track on the timeline, the whole point of that
track is to get a team polished and ready to
represent UVU to go to the Global Social Innovation Challenge and to present your solution
to this massive problem whether it be affordable
housing or it’s possible it could be some other topic
if the best presentation and the best project comes
from a different topic. So we really are excited
to give you the opportunity and the structure and the
support to help you develop a project and a solution
that can then launch you into the Social Innovation
Challenge globally. The other one is the Map
of Systems Challenge. This one’s in Oxford and we’ve
been sending students there for the last three years, is that right? And our students have
done tremendously well at the Oxford competition
and this is frankly a little bit amazing
because our students are up against both undergraduate
and graduate students at some of the best
universities in the world. Two years ago, our students
took fourth place, I believe, beating out Harvard and a
bunch of Ivy League schools, beating out Masters and Doctoral students, our students did a tremendous job. This year, they didn’t
place in the top four but they still did a tremendous
job competing directly head to head with top
universities around the globe. So our goal is to get
our student team from UVU who maps out this problem
of affordable housing or it could be some
other big social problem that you’re trying to tackle,
whichever one ends up winning. We’ll support you and help you
develop all your materials, coach and get you ready
and go represent UVU to go to Oxford and our
goal is to, not just place, but we want to win the whole thing and I think we’re able to do it. We’ve competed at very
high level in recent years and there’s no reason why, with a little bit extra
effort and support, of why that can’t happen. The sky’s the limit, I think when you’re sitting here
right now and you’re thinking, “Uh what am I gonna do, who
am I gonna partner with, “what topic do I wanna look into?” I want the juices to be
flowing but I also want you to not limit yourself, like don’t think, “This is crazy, why would
do I think I could go “all the way to San Diego or Oxford,” because you can, you absolutely can. Our students in the past have, they’ve competed incredibly
well and you will be able to and we’ll support you in doing that. And let me also just
say, as a faculty member that’s traveled with
students to these types of competitions in the past,
it’s a tremendous opportunity. It’s so much fun, you learn
a lot just from having the chance to go travel,
to go see another place. Now San Diego’s not another country but San Diego’s still really cool and their campus is amazing but if you have the
chance to go to Oxford, I was there this summer,
Oxford’s incredible. The people you get to
interact with, the faculty, the students, people in the Skoll Centre which is a top global center
of social entrepreneurship around the world, you get to
interact with all those people. You get the chance to rub
shoulders with the top thinkers and practitioners around the world. It’s a tremendous
experience in and of itself but also as a huge resume builder, it’s a great networking opportunity and it’s something that
could launch you potentially into the next phase of your
academic life or career as you move forward. I want you to believe in yourselves, I want you to know that this
is something that’s possible and we’ll help you to get there. I think that’s it, thank you. Mark, I think you’re back up. – Okay, so what questions
have you got so far? I know we’re dumping a lot of stuff on ya. – [Male Student] It just
strikes me as odd to split into solutions track and a research track. I mean why are you gonna
come up with a solution without doing the
research and the research, why would you pull the solution? – Great, I’ll comment on that in a second but that’s a really good point. Other questions or issues
or concerns or thoughts? What’s exciting about this
or what scares you away? What makes you nervous? Go ahead. – [Male Student] So I’m
really interested in this whole process, mine’s a
political social project that I’ve personally become really
passionate about recently. If my solution happens
to be business oriented or I’m trying to create a
business that accomplishes this functionally, is there
any like issues with business conflict of interest or– – No, we love it. So let me address your question
if I could for a second. How many of you remember a few years ago, there was this big earthquake in Haiti? Does anybody remember that? It kind of totally destroyed
it and you know there was a big catastrophe in Puerto Rico and now we got one in the
Bahamas and what was the, jumping to the solution,
where we got very excited about saying, “Okay, there’s
a problem, how do we help?” And what do you think was the
first thing most of us did in trying to solve the problem in Haiti? – [Male Student] Send them stuff. – What did we send them? – [Male Student] Anything. – Food, clothes, water,
all kinds of stuff. – [Male Student] Temporary housing. – And because we jumped
to the solution first, that created a problem so
what problem did that create? Well, because food was now free, every farmer in Haiti went out of business and everybody that worked
for a farmer in Haiti lost their jobs and that
whole economy now suffered because we gave them free food. So the aspect of understanding the system and seeing how these things
are interrelated and integrated makes a huge difference
on our ability to come up with a solution that actually works. And what we’re trying to emphasize here with this experience, and one, hats off to ya for being here because this is something most
kids are gonna graduate from college and not understand this
concept of systems thinking. Last year when we did this,
what we found was a lot of the student teams jumped to the conclusion without really understanding the problem and the result was the
conclusions were flawed. And what we’re trying to do is say, part of your future in being able to being very effective in your job, being able to be very
effective in changing society is to do this very step and that is to understand the problem
first and then from that be able to come up with solutions. And Vance has worked
with the Enactus Program which is a group of students that focuses on this very thing, this
social entrepreneurship and so there’s a number
of opportunities you have to get involved with this but I would say this is one
of the premier opportunities to really change your resume
by being able to address what you’ve learned here
and the ability to do system thinking, design
thinking, mapping things that are going on. – [Male Student] So the
people who do their research give the research to the
people who are supposed to create a solution and
then from the research, the solution people
come up with a solution? – You can do all of it. So what we found out
though is that for someone that wants to start a business
in affordable housing, what are they gonna go to? They’re gonna look at the
research that’s been done. So in essence, part of what
you do with system thinking is you’re publishing your findings, you’re doing the research, you’re finding out what the problems are so that others can build upon that and be able to come up with
a whole variety of solutions. So frequently, this is the
part that gets overlooked but this is the part
that’s the most fundamental in being able to change the world, is understanding the
problems that drive it. – [Vance] In answering
your question from before, there’s a reason that we
put in the Fall semester, everyone’s focusing on systems thinking and therefore everyone in
the university could come and watch these finals to
see what everyone’s results on they found is so people
get rewarded for that but in the next semester, like I teach Creativity
in Entrepreneurship, I want the students to focus
on coming up with solutions and so they will have
something to base it on from the work that happened
in the previous semester. – [Marissa] May I add something too? It’s a system in and of itself I suppose where you do the research and
then you come up with an idea and you have a prototype
and test it, right, and that becomes more research
to understand what works and I think that makes a
lot of sense for people who are interested in doing good with like business marketing and
stuff but there’s all these different pathways in
which we could engage with, with making a difference,
that are less of coming up with a prototype, right? It would be more like, “Oh,
we propose legislation because “there’s a gap here and that’s
the best point of leverage.” And so it’s kind of allowing
for one specifically, right, the entrepreneurship institute
is running for students who are interested in engaging that way but then we have these whole other track where they can dig more
deeply into some ways systems that they have a lot higher entry levels or they’re a lot harder to get into. – Barriers to entry? – [Marissa?] Yeah, a lot
more barriers to entry and so this longer research
time for students to do more and also to just engage
in systems thinking more at a deeper level instead of
going to the prototype test part of researching, just
going to the sort of continue on this process. – And we do hope that out of the research, you really do come up with some solutions that can be very widely applied. I’ll give you an example,
so a couple years ago, we did the one on water
and one of the teams looked at the impact of the algae
blooms that happened on Utah Lake and said, “I wonder what we
could do to try to understand “it and try to fix that problem.” So in the process, they did a
really good job of analyzing the problem and then they
came up with a solution that used some scientific
methods to capture the algae and consume it and turn it
into a biomass that could be and had some added value and
they’re now in the process of securing funding for
a $200,000 grant to build a machine to be able to try
that and see if that actually is going to work and so
that wouldn’t have happened if we hadn’t have started
the thinking to say, “Figure out what the problem is “and then come up with a solution.” – [Vance] And that one’s fun
because we had the chemistry department and the business department working together on this. – [John] Can I just add two things? One, what Vance was just
referring to, this should be an inherent interdisciplinary
type of endeavor, right? We’re trying to look at these
big issues from all angles and trying to understand the complexities and all the different aspects of it. And that’s, I mean, to your point Mark, when you held up the envision,
what’s that report called? – The vision twenty-fifty. – [John] Yeah, the vision
twenty-fifty report, tons of research went into that. It was years of research before
they came up with a report and recommendations and
so the mapping process, we’re having everyone do it this fall but one of the reason’s
we’re having it continue into next semester is the
process can and should take a long time to be very thorough. But we also recognize some
people have an interest in going the solutions route and
the prototyping route so we have both ways and we
hope they’re will be interaction between both groups as well. Like they don’t need to
be completely isolated, they definitely can
collaborate and interact. The other part of this is
just pragmatic and that is that the San Diego competition
is strictly a solutions-based competition and Oxford
competition is strictly a mapping systems thinking competition. So part of this structure
we’re doing is simply because of that fact as well. – Thanks for that question, that got some really good discussion. – [Male Student] Sorry, I
shouldn’t like have to plan– – That’s a high five. (laughing) – You had a question? – [Female Student] Do you
have a ballpark of the time to get in for it because I don’t– – You know, we’ve seen
some teams in the past have been minimalists and
we’ve seen that they’ve really been amazing, I’ll tell ya,
the team that went to Oxford last year, or a few months
ago, their project was to look at the impact that
incarceration has on children so if Dad gets hauled off to prison, what does that do to the
kids and to the structure? And they looked at the impact
on the kids, on schools, on various different things that come up with an amazing really, I
thought they did a fabulous job on the research but when I
look at the students that I saw at the first semester
versus the ones that to Oxford, they were knowledge experts in that field that could stand up to
Ph.D.s coming out of Oxford. It was just an amazing
transformation that they spent a fair amount of time
really doing the research but out of that, they were
published authors now on surveys, on studies, on interviews,
it’s just amazing what they got out of it so you’ve got the range. It really is a matter
of how you fit it in. I will say one of the goals
that we have tied into this and we love it when we’re
seeing the interdisciplinary activity was, with Vance’s
class, this competition counted as part of their grade
and if they got selected, they got automatic A’s plus– – [Vance] They won. – If they won, yeah. So we love it that if
you can take this concept and go talk to any of
your professors and say, “Hey, I’m doing this amazing
thing, can this count as part “of my credit for my grade in this class?” That’s a triple win and
don’t be afraid to ask because I think the professor’s
love to see you putting in extra time on a project that
helps your learning experience. – [Vance] If it applies. – If it applies. – [Male Student] Is there
any concern with graduating amid this process with, a
problem with somebody graduating in Spring so would attending
as an alumni effect not getting in? – [Vance] Most competitions
count for up to a year after graduation. – Yeah, so you’re welcome
to go to Oxford if you’re systems study, you’d be good. – [John] Maybe to add to
that question, or I heard someone talk about with the
timeline, one of the reasons why there might be a little
bit of shake up in teams starting January, is just
the fact that some students are only interested in being involved at the university level
this semester, right? In a course, it’s connected with a class, or maybe they’re graduating in December and they don’t have any
interest so it’s very possible that we could have teams
that place, we have students that are in first,
second, third place teams that end up dropping out
then we need to re-establish new teams in the Spring to
launch into the two tracks. So in January, when we come back together, what we’re gonna try to do is, if you have an existing team
that completely moves forward, you can still completely move forward but we might reformulate some teams. – [Summer] As long as there’s
one person carrying over. There has to be at least one. – Okay, so all good questions
related to the process and where it kind of goes. Now this is where the boring part starts. So if any of you need to go, you can. But I was gonna dive
just a little deeper on affordable housing and we can
have this little interaction but I also recognize you’ve
met your commitment to be here, to understand the competition
so if any of you want to now eat and run, you can or
if you want to stay and hear– – [Summer] Give a second
to sign up with your info. – Oh yeah, so what we’re
hoping as far as outcomes, right Summer, is that one,
we’d love to have you sign up so we can start to send you
information that we find out about the events and workshops and things that may be of interest so
please sign up on that list. We have a website that’s available that if you search for what, Megan? – [Megan] The UVU Social
Innovation Challenge. – [Vance] It pops right up
under the entrepreneurship. – UVU Social Innovation
or UVU Entrepreneurship, you’ll see that and on that we’ve got, that’s where you enter
in for the competition and that’s where you got
information about workshops and activities, a lot of stuff
is explained at that website. It’s already up and running,
we’ll also have a little video coming out here pretty
quickly that kind of gives you a little more background
from that standpoint. But if we get you to sign
up, we can start sending you information and then tell
your friends and then if you have any of your
professors have any questions, have them call us. We’d love to help you get
school credit for doing this as well and we believe
it’s an awesome project. So, since none of you got up and ran away. (laughing) – [Vance] There is food
if anyone needs to get up and get food. – And we’re very casual here so– (laughing drowns out speaker) Who does, when we say affordable housing, what does that mean? Yes, go ahead? I caught her while she was stretching. When we say affordable housing,
what comes to your mind? – [Female Student] That a lot of people can’t afford to buy a house. – Okay, who can’t afford to buy a house? – [Male Student] College students. – [Female Student] Me (laughing) – College students, okay. – [Male Student] Or recent graduates that have a lot of student debt. – Okay, so part of this system
mapping is to understand who has this problem. What is the problem and
who has the problem? And why should we care about it? So let me just give you a
little bit of an overview on affordable housing and what it is so I’m also on the Orem City
Council and housing in a city is critical because we want people to be, we want to be family city USA, we want to have a nice cross
function of variety of, whether you’re senior, whether
you’re a child or you know. We want a good vibrant city and housing is a key factor in that. And housing affordability is defined as a percentage of your income. So if you can find a
house that is within 30% of what your income is,
then it’s affordable. And the studies have shown
that if you’re spending more than 30% of your
income towards housing, you’re putting yourself in
jeopardy of other problems that kind of come from that. So affordable housing is
basically that, 30% of my income, I’m able to find it. Out of curiosity, my daughter
realized that when 70% of it goes toward housing, you’re
borrowing a lot of money from dad and I realized that too. (laughing) So I can attest to that 30%
range as being critical. Did you have– – [Vance] Yeah, as we talk about it, the first comments are
about buying a house, but that’s all referencing
housing so this is any type of living situation that
you’re paying for housing. It doesn’t mean everybody
gets to buy a house, it means I have the ability
to fit within my income, to have a safe, good place to live. – Perfect, so I’m really
curious about who has the best rent in here, does anybody got… Well you’re living in your
mom and dad’s basement. – [Male Student] I’m living
in my sister’s basement. – Sister’s basement and
how much do you pay? – [Male Student] $400. – 400 bucks, how many has
less than $400 a month, how much do you got? – [Male Student] I pay 315. – Okay, 315, do we have
a better offer than that? – [Female Student] Mine’s
semi, it’s getting renovated so I pay 250. – All right, so if you put up
a little bit, that’s not bad, that’s married housing even, okay. – [Male Student] Right
now it’s 100 ’cause I live with my parents but
later on it will be 300. – Good, okay. Now who has probably
the most expensive rent? Anybody want to admit
to a highly rented spot? Anybody over $1200 a month? – [Students] Or mortgage? – Okay, yeah, housing,
mortgage, rent, whatever. – [Female Student] I have a mortgage. – What are you looking at
in terms of mortgages now? What does a house
typically run on mortgages? If that’s too personal,
you don’t have to answer. – [John] Maybe you can,
without making people divulge their mortgage, I
mean like the general price for a starter home nowadays in Orem is probably what, 300, 350? – [Vance] Even apartment
style condos at Water’s Edge are going for over 300. – Yeah, well I’ll give you an example, we were on the city council we
had a developer that came in with this project development and says, “These are starter homes,
we’re developing these “twin homes, starter homes.” We said, “Okay, how much
are they gonna go for?” Well, the cheapest ones are
425 and the more expensive ones are 500,000; those
aren’t starter homes. – [Vance] Starter homes in reality. – Actually those might be. Okay so you take your rent,
you say, “Okay if I’ve got “a $300 rent, how much do
I need to be making a month “to be able to say I’m
in affordable housing?” 950 bucks, right? So you’re kind of in that range. If I’m paying a 1,000 a month in mortgage, then I gotta be making at
least 3,000 to able us to say, I’m in affordable range. – [Male Student] Is that net or gross? – You know, that’s gross basically. I think that’s how it’s
defined here is that’s gross. – [Male Student] But that’s
also utilities, right? – Yeah, and that should include utilities which becomes a factor. Certain cities have higher
utilities than others. In terms of property tax and
all those kind of things. You kind of bundle that
together and say okay, what is affordability? Well it’s 30% of your
income in housing costs, what it costs for me to live. – [Male Student] Are you
supposed to go by that number or it can be re-define? – I think the definition
is fairly standard across the industry as a whole. (student mumbling) – [John] If you have students
that can make a compelling argument for redefining
that number, then go for it. – [Male Student] That’s what I’m thinking. – [John] Economy research. – And maybe that percentage
is now 40% or 45 or 50 but the concept is this
and this is why it matters. Why does it matter to be
around 30, 33%, this is kind of where they’re saying, based
on how Americans spend money, this is where things get broken out. And you’ve got transportation,
between housing and transportation, that’s
almost half your income. For car, gas, insurance, and
all the things associated with your housing. Then you have food, insurance,
healthcare, entertainment, clothing, and then other expenses which might be schooling, I don’t know, but you get an idea about what
happens if all of a sudden this now starts to be down in this range? We have to give things up, right? You have to change things
so the impact is that by having higher housing
cost, you have less disposable income that
you can use for groceries and/or purchasing other necessities. If you have to choose
between where you live and what you eat, what
are you gonna choose? Bring on the ramen, right? And what happens to your body systems when eat a lot of ramen? – [Male Student] Not very healthy. – Yeah and then what happens
to your medical bills? So this comes back to the systems thinking that one little variable
can have an impact on several other ones. One of the other impacts is, what are the challenges
that school districts has especially with people that
are in affordable housing circumstances, is they move. And if you move, what does
that do to your children and school? Well one of the studies
that they found says, with the high cost of that,
creates longterm achievement gaps in children because moving
sets them back a little bit and they’re seeing, these
can be several years of educational achievement gaps based on affordable housing related issues. High housing costs can
push families actually into homelessness. We’ve seen a significant
amount of homelessness. We like to think it’s just individuals. Entire families are being effected by the homelessness factor. – [Summer] And sometimes
we think that homelessness is defined by somebody
living on the street but it can be, it’s defined
by two families living in one household, so that’s, when
you double up families, one of those families is technically
experiencing homelessness. – [Male Student] So am I homeless? (laughing) – [Marissa] You have a different
basement, that’s a little different. So that’s example of you don’t see it but it actually is a real problem. – The cost of housing frequently
too means that you may not have money to buy medications. Medications can be pretty
expensive and then again, that leads to a variety of
factors with your health costs. High housing cost
reduces your independence in quality of life for
the senior population. We’ve found that when
the cost to stay home gets too expensive, what do you do? Well then you may go
live with family members or you may struggle in a variety of ways and then finally housing costs
can reduce your neighborhood quality, you care about the appearance. You may let your yard go to weed and you may have increased
fire danger with big weeds in the backyard. So there’s a number of
factors that you see that are pivotal or connected to the housing costs and the dilemmas that
are associated with them. So now, who does this affect? Well, I was just on the
internet last night, I went through, what are
the average starting wages of some of these professions. So every community loves to
have fire fighters and teachers and nurses and police officers
live in their community but the challenge becomes
that if my starting wage is around twenty-eight three,
then what can I afford? Well, that can be a bit of a challenge. Or fire fighters, thirty-six one. Police officers, 44,000. This has come up quite
a bit, school teachers, base wages now are in the
low 40’s which is great. So I thought construction
workers, they got to be making oodles, so I looked up the
cost of framer is worth, 36,000 a year is kind
of what framers make. You’d think they’d be a
little bit more than that but plumbers, electricians,
framers, auto mechanics, you got to look at where those are at. It really effects us. It effects our ability
to have these professions and these people living in the community. All of you know your own
area that you’re studying. So just out of curiosity,
generally speaking, – [Male Student] What’s the top right, 45? – Oh business manager, what’s
happening with business people and I think that’s probably true. When we have students
graduating from business, I think they’re in the 40’s,
low 50’s, that’s about, that’s a success, that’s a win. I mean each of you know your professions and it would be really
interesting for you to dive in a little deeper and say okay
what is it typically start, what do I typically make coming out and my understanding is that
40 to 50,000 starting wage is really pretty decent
but that’s not too far. If you’re in engineering, you
might get a fair amount more or programming or coding,
some of the STEM fields have a little bit better opportunity. I’m not sure about the creative
fields, artist and writers and those, could be even more
difficult and challenging. But the other aspect that happens is if this is where you’re at,
you’re gonna rely on a second form of income so that makes
you a double income family where you’re both required
to work and what impact does that have on kids when
both parents are working, you’re trying to find a way
for the upbringing of kids, mom and dad watch them and
all those kind of things. So those are all factors that effect it but the real message is that
it really effects all of us and it effects for the old
people with gray mustache. I have a teenager daughter,
that’s why this part is gray. This part’s my son but those things happen and then it effects us all. So there’s definitions that
have been looked at that say okay, based on the housing
and urban development measurements, these are basic
categories that we look at. We have below the poverty
level, we have low wage workers, the low income households and
moderate income households. To be a moderate income
household, your household income needs to be around 70,000
a year to be able to be qualified for that. Other than that, you’re
looking at these areas where your income may be
causing some housing problems, so those are some drivers. I took those numbers and I put
them based on a little more and said, okay, if you’re in
this household, in the poverty level, you can afford $312 a
month on that income of 12,000. And if you’re in the low wage,
20,000 so this covers your nursing and some of those early,
726 a month for apartment. I think that’s pretty hard to find, I think it’s really tough. – [Male Student] Just bringing
these numbers into industry standards into Utah. One of my sisters wanted
to move into a place, she’s got four kids and
her husband is gonna be graduating soon and they were thrilled to find anything at 1200 a month. – Yeah, so we look at that
1200 a month, puts us, you got to be around 46, 50,000 a year. – [Male Student] I’m
sure they’re not there. – You have to be in that category. – [Male Student] Not working full time, I think it’s almost impossible. – If not, then what
happens, that means okay, well we’re spending a lot more
on that but we may be lagging in terms of our ability
to do some other things. And then finally, even if
you’re up in a significant 1700 a month, that’s pretty good. How much house can you
buy for 1100 a month? Guesses on– – [Male Student] Less than 200,000. – Less than 200, anyone
want to argue with that? – [Male Student] It
depends on your (mumbles) (students mumbling responses) – What did you say about? – [Female Student] Oh, about
200 depending on how much you can put down. – So let’s look, the good thing
is right now, interest rates are really low. What happens
if interest rates go up? (static drowns out speaker) So if you look at a third year loan (interference drowning out speaker) (crackling) In order to have a half
a million dollar home (static drowning out speaker) That continue to hold true,
until this last decade. We had the big recession
of 2008 which pretty well shut down a lot of housing
development across the state. We didn’t change much, our
graduation rate, our birth rates or some things in the state. So we ended up having now,
a lot of people looking for a house that doesn’t exist. What does that do to prices? Yeah, you got some economic
factors that are saying man, I’ve heard stories where
it goes on the market one day and they get two or
three offers a day later, and they’re more than
what they’re asking for because they’re trying
to really nail that in. So maybe that softening
a little bit but I think, especially for lower affordable
housing, it becomes an even greater dilemma that the demand
for those are pretty stiff which drives market prices up. And just kind of interesting fact of 2018, just in Orem City, the studies that we did said that around 7,000
people are living in housing that’s more than 30% of their income. We have about total households
is probably around 36,000 households and so almost
20% of them are living above the affordable range,
that’s a little bit scary. Now it comes to the question,
what are some of the drivers? What do you think causes
housing to be so expensive? – [Male Student] I think a big
one for Utah is number five on here because the belief that
if it’s low income housing, it’s gonna make a negative
neighborhood so any developer that wants to build something
near anyone’s house is gonna get a huge amount of kick
back if it’s in any way, that’s something I’ve already
experienced a little bit. – Anybody hear of nimbyism,
or nimby, not in my back yard. So we get for example, how
many think you need to have a good hospital in your community? Yeah, unless it’s right next
to you because then you don’t want the helicopters
and the ambulance sirens and the traffic and the
lights and all the stuff that goes with it, right? We’re surrounded by that element
of neighborhood perception and what that does and why
do they care about that? Because they’re saying, my
biggest investment is in my house and if I’m surrounded by
things are going to hold the value of my house down,
that person effects me so there’s a pretty
vigilant effort to try to protect your backyard. – [Male Student] So we
can increase the number of affordable houses next to the new jail. – Yes – [Vance] You’ll find that low priority – You’ll find that, where do
you see apartment buildings in Orem? – [Male Student] Freeway. – Yeah, so they’re in areas
where half a million dollar homes are not gonna be built
so they’re along State street, they’re along the freeway. They’re in areas that
are not in the middle of a neighborhood, right? They’re not right next door to a school. You see that that’s one of
the aspects that is one of the drivers as far as where it
gets built, where does it make sense, what else can it go? So some of the key drivers,
so if you’re thinking about mapping the system, these
are all potential aspects that you would see on your map. Just like what Marissa
showed with one map, there’s one for housing, what were some of the other categories? – [Marissa] There was
family, there was work. – Yup, so you can start to look
at mapping out all of these and say okay, so what is it,
what are the issues about the earnings and funding options
and you may find out that actually there’s a number of
grants and funding options provided by the state and
federal government to help certain qualifying
families, that’s a positive, you need to know about
that, it’s part of what goes on the map. The cost of land, certainly a key driver. I think, I’m trying to remember
but it was a little while ago in 2008, and you could buy
an acre of prime commercial land for 400,000. Now you can’t buy residential
land for, it’s almost like a million bucks an acre. I mean it’s just super
expensive that a cost of a lot, here in Orem, there’s a new
development that went in, they bought an orchard, a fifth
acre, or a quarter acre lot, sells for $199,000 so it’s
pricey, it’s expensive for land. Zoning regulations, what does
it take, what do you have to get approved in order
to build a house in Orem? – [Female Student] Building permits. – Okay, and what does
a building permit cost. – [Female Student] I don’t know. – Orem’s pretty cheap,
building permits are 2500 bucks and then you also have to have
impact fee so the thought is this if you’re building in
Orem, and we’re gonna need to add more parks, we’re gonna
need to have more amenities because now we have more people moving in so who should pay for that? Should the residents pay for that? Or should you pay for that
as part of an impact fee? So many cities have an impact fee. The worst one is Eagle
Mountain Saratoga Springs where impact fees are like 20,000 bucks and that’s just to say you’re moving here and in order for us to have a community, we got to build a park and the
park cost money to build it and we’re not gonna make the person that’s already been
here pay for your park. So you’re paying an impact fee. And most communities have,
Orem is one of the lower ones, I think we’re around
$8,000 for an impact fee. And those are the key factors. There’s certain zoning
regulations you have to do for electrical, for code and
all those kinds of things and then you know, you’ve
got construction material, they’ve gone up quite a bit. The construction labor, it’s
hard to find enough help, you’re gonna have to wait a long time, it takes a lot longer. And then obviously we
talked a little bit about the economic conditions
and the supply and demand. So these are all kind of factors
that lead to affordability of housing and the cost of
housing and that’s part of where we go as okay, so what do we do about it? Let’s understand it first,
then we’ll find ways in there to be able to maybe effect
construction cost or zoning regulation and fees or some
of these other aspects. – [Male Student] Being an
economist, I must say that all those things are drivers of
supply and demand so you should just put it in supply and demand. (laughing) – We saved the best for last. – [Vance] Mark, is there a
square foot minimum in Orem? That they should be aware of? – A what? – [Vance] A square foot minimum. – There is, a 1200 square foot minimum. – [Vance] 1200, so same as Provo. – Yeah and so we’ve had
questions about tiny houses. Well can I put a tiny house in? – [Vance] No. – No. There’s a development up in
Salt Lake where they’ve got a whole development of tiny
houses so I’m gonna go see that tomorrow and it could be
quite interesting scenario but you can also look at,
some homes have a lot of extra backyard that you can drop
a tiny home in a backyard pretty reasonably. – [Male Student] What about pods? – Same thing. – [Male Student] The big
problem with those is plumbing, it’s really hard to meet plumbing code. – You still have to do all
the plumbing, the sewage, and the parking and access and
all that but it’s certainly an option. Okay, so I’ve taken up
the rest of that time. I hope that was interesting, at least get you thinking about, there’s a lot of factors you
can dig into and dive into and each one of these…




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