diff --git a/simapp/app.go b/simapp/app.go
index 1112fbc1ecab..a8b93c0204c7 100644
--- a/simapp/app.go
+++ b/simapp/app.go
@@ -296,6 +296,9 @@ func NewSimApp(
 	*/
 	app.GroupKeeper = groupkeeper.NewKeeper(keys[group.StoreKey], appCodec, app.MsgServiceRouter(), app.AccountKeeper, groupConfig)
 
+	// set the governance module account as the authority for conducting upgrades
+	app.UpgradeKeeper = upgradekeeper.NewKeeper(skipUpgradeHeights, keys[upgradetypes.StoreKey], appCodec, homePath, app.BaseApp, authtypes.NewModuleAddress(govtypes.ModuleName).String())
+
 	// Register the proposal types
 	// Deprecated: Avoid adding new handlers, instead use the new proposal flow
 	// by granting the governance module the right to execute the message.
@@ -320,8 +323,6 @@ func NewSimApp(
 		// register the governance hooks
 		),
 	)
-	// set the governance module account as the authority for conducting upgrades
-	app.UpgradeKeeper = upgradekeeper.NewKeeper(skipUpgradeHeights, keys[upgradetypes.StoreKey], appCodec, homePath, app.BaseApp, authtypes.NewModuleAddress(govtypes.ModuleName).String())
 
 	app.NFTKeeper = nftkeeper.NewKeeper(keys[nftkeeper.StoreKey], appCodec, app.AccountKeeper, app.BankKeeper)