Congressional hearings examine barriers to development and housing finance reform
This week, a House Financial Services Subcommittee held a hearing to examine the various federal, state, and local regulations and policies that affect the development of affordable multifamily housing development. Testifying before the Housing and Insurance Subcommittee on the costs of regulations were Sue Ansel on behalf of the National Multifamily Housing Council, Erika Poethig of the Urban Institute, James Schloemer of Continental Properties Company, Inc., and Steven Lawson on behalf of the National Association of Home Builders.
Key takeaways from the hearings included a look at changing housing trends over the next 25 years as individuals opt to rent instead of becoming homeowners, tightening the affordable rental market. Lawmakers and expert witnesses discussed the array of regulatory costs related to development, including fees, standards, and other requirements. Overall, the bipartisan hearing aimed to strike a balance between streamlining regulations and maintaining protections for affordable housing, fair housing and accessibility, and risk mitigation.
“Today’s hearing was essential in order to determine the costs of regulation, and barriers preventing affordable multifamily housing development. The lack of development is especially concerning because while we continue to enjoy some of the lowest rates of unemployment in our history, people are having trouble finding affordable housing in areas they are being offered jobs,” said Subcommittee Chairman Sean Duffy (R-WI).
“Easing regulatory barriers that limit or exclude multifamily development is essential to fixing the supply problem, but they will not be enough…public investment and subsidies are necessary to bridge the cost gap and meet the needs of extremely low–income renters,” said Erica Poethig of the Urban Institute. “Not all regulations are the same. Policy changes to reform regulations should retain and expand measures that protect health and well-being.” The hearing can be viewed online here.
Separately, the full House Financial Services Committee held a hearing to review housing finance reform. Both Committee Chairman Jeb Hensarling (R-TX) and his democratic counterpart, Ranking Member Maxine Waters (D-CA), emphasized the need comprehensive housing finance reform.
During the hearing, Chairman Hensarling announced two initiatives aimed at spurring finance reform efforts: In addition to his reintroduction of the “Protecting Taxpayers and Homeowners Act (PATH) Act,” which the Committee had passed in 2013, the Chairman unveiled a proposal to replace the GSEs (Fannie Mae and Freddie Mac) with Ginnie Mae in order to increase competition and innovation into housing finance.
NAHMA will keep members up-to-date on housing finance reform efforts. The hearing can be viewed online here.
Bipartisan Senators introduce bill to create rural interagency council
Senators Catherine Cortez Masto (D-Nev.) and Rob Portman (R-Ohio) introduced a bill to create a standing “Council on Rural Community Innovation and Economic Development” to work across executive departments, agencies, and offices to streamline the work of agencies and programs specifically designed to support rural communities. The goal of the council would be to maximize the impact of federal investments across the different agencies in order to promote economic prosperity and quality of life in rural communities and encourage the use of innovative technologies that resolve local and regional challenges.
Titled the “Council on Rural Community Innovation and Economic Development Act of 2018,” S. 3393 would establish a council to report on “Rural Smart Communities,” describing efforts of rural areas to integrate technology to solve local challenges related to housing, energy, transportation, health care, and law enforcement. The bill also emphasizes access to rural broadband and would codify the federal interagency Rural Council, permanently creating a mechanism for all relevant federal agencies to share expertise and resources regarding rural programmatic assets.
“We must focus on better addressing the unique challenges and needs of rural communities,” said Senator Cortez Masto in a press release on the bipartisan legislation. “This bill will create a council that will look out for the best interests of Nevadans who live in rural areas and ensures that we are doing our best to provide geographically isolated communities with the resources and innovative technologies they need to thrive.”
UP NEXT: What NAHMA is watching for next week
· Lawmakers on Recess part of next week in observance of Rosh Hashanah
· House and Senate begin negotiations to reconcile fiscal year 2019 spending bills for HUD and USDA
· Senate Committee to hold hearing on the implementation of Dodd-Frank reform