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Utah is facing an ‘alarming’ new threat to affordable housing. It’s convening people to address it.

The state created a task force focused on construction fraud, and it includes a dedicated prosecutor for cases.

(Trent Nelson | The Salt Lake Tribune) Housing under construction in Eagle Mountain on Friday, May 2, 2025. An increase in construction fraud complaints includes an average loss per consumer of $302,000 in new home construction in the past three years.

Utah officials are combating a growing obstacle in the state’s housing crisis — more than $30 million in construction fraud in recent years.

The state’s Division of Professional Licensing, or DOPL, received 2,146 construction complaints in 2024, according to a news release.

As of early August, the agency has processed 1,047 so far this year. One investigation into complaints revealed an “alarming pattern of unlicensed practice, inadequate supervision and fraudulently aggressive sales tactics.”

To fight the growing problem, the Utah Department of Commerce established a new task force focused on fraud in residential construction and appointed Utah’s first full-time prosecutor dedicated to these kinds of cases.

Three main objectives

The task force, according to state officials, will bring together state employees with expertise in professional licensing and consumer protection, staff from the Utah attorney general’s office, law enforcement, prosecutors, industry representatives and policymakers to focus on three main objectives:

  • Aggressive enforcement through interagency cooperation and assistance for local attorneys.
  • Empowerment through education and outreach, including equipping consumers with guides and best practices, training industry professionals on compliance and helping local prosecutors to handle construction fraud cases effectively.
  • Drafting improved regulatory rules after researching laws in other states and working with industry groups to identify gaps.

    • State Sen. Cal Musselman, a Republican and real estate agent from West Haven, will serve as part of the group and said it’s a “transformative step” to safeguard Utahns’ investments.

    “Construction fraud is a direct threat to our efforts to put homeownership back in reach for our kids and grandkids,” Musselman said in a statement.

    Brigham City Republican Rep. Tom Peterson, a building official, said he’s seen the threat of construction fraud firsthand, especially its impact on the stability of the market.

    Steve Waldrip, who serves as Gov. Spencer Cox’s senior adviser for housing, strategy and innovation, called the task force’s work “an essential piece to bringing affordable housing to Utah.”

    “It fosters the trust needed for people to confidently hire quality contractors, especially when investing in and improving older, more affordable homes,” he said.

    Utahns have faced what the state’s Division of Consumer Protection calls a “staggering” amount of losses — $32 million in the past three years — to construction fraud.

    That’s been “particularly acute” for new build customers, the division said, who have lost $302,000 on average.

    Resources for consumers

    The state is also encouraging people to educate themselves and access resources to find a qualified, licensed and trustworthy contractor.

    That includes:

  • A new template for construction agreements.
  • A pamphlet laying out seven steps to ensure home improvement success.
  • Tools to verify a contractor is licensed and look for possible disciplinary actions.

    • Other free resources are available at dopl.utah.gov/contracting/resources/, and homeowners who think they have experienced fraud can file a complaint with either state division.

    Megan Banta is The Salt Lake Tribune’s data enterprise reporter, a philanthropically supported position. The Tribune retains control over all editorial decisions.