The U.S. House of Representatives’ Committee on Financial Services’ (HFSC) Subcommittee on Housing and Insurance held a hearing, “Housing Solutions: Cutting through Government Red Tape,” on July 24. The hearing focused on reducing regulatory barriers to the construction of housing and strategies to address the lack of housing supply.
The witnesses included Carl Harris, co-founder and president of Carl Harris Co., managing partner of Harris Homes, and chairman of the National Association of Home Builders (NAHB); James H. Schloemer, CEO of Continental Properties Company and chair of the National Multifamily Housing Council (NMHC); Paul Compton, managing partner of Compton Jones and Dresher LLP; and Linda Couch, senior vice president of policy and advocacy at LeadingAge.
Chairman Warren Davidson (R-OH) opened the hearing by expressing concern about the red tape that housing providers are up against, stating that the poor allocation of funds due to bureaucracy and overreaching regulations are to blame for the housing supply shortage. Representative Sylvia Garcia (D-TX) noted that the Biden administration has made tremendous progress in addressing the housing crisis, pointing to pandemic relief and new appropriations. She stated the importance of regulating corporate landlords and noted the great number of regulatory burdens at the state and local levels rather than the federal level. Representative Garcia also noted that investment in housing is especially important when it comes to addressing natural disasters, recalling stories of her constituents struggling to get back on their feet after Hurricane Beryl.
In their opening statements, witnesses expressed concern about the need for more housing and about the burdens that regulations impose on housing suppliers. Couch wrapped up the opening remarks by stating that the federal government must take substantial steps to address the country’s aging, low-income population, and that getting rid of exclusionary and racist zoning laws is crucial in this pursuit. She ended by asserting that while addressing regulatory barriers and red tape is important, “doing so does not absolve the federal government from committing the resources” needed to address the housing crisis.
At the start of questioning, Chairman Davidson asked the witnesses about their top congressional priorities. “Stop,” was Harris’s response - that is, stop adding additional regulations. Schloemer responded by urging the lawmakers to expedite the process of leasing apartments to Section 8 voucher holders. Couch stated that the government should expand the programs that work well, such as HUD Section 202 and the Housing Choice Voucher program, and make housing assistance an entitlement to the lowest-income households.
When questioned by Representative Garcia about the importance of environmental regulations, Couch stated that such regulations protect people from safety hazards. She explained that older adults in public housing, who have extremely low incomes and are disproportionately non-white, often have chronic health conditions that are exacerbated by low air quality and other environmental hazards. She stated that while environmental regulations might delay housing processes, it is important to put safety first.
Representative Maxine Waters (D-CA), ranking member of the Committee, discussed the shortage of accessible and affordable housing. When asked about the lack of accessibility throughout the housing supply, Couch explained that increased funding is needed for federals subsidies as well as regulations that require some level of accessibility in housing. She noted that the federal government has a role in paving the way for “disability forward housing.”
Watch a recording of the hearing at: https://tinyurl.com/k9a7uhmz
Read the Committee Memorandum and the witnesses’ testimonies at: https://tinyurl.com/4xw7mn7v