Congress Holds Hearing on Housing Solutions and Regulations
By: Jenna Hampton, Legislative Affairs Manager
Subcommittee Chair Warren Davidson (R-OH) and Subcommittee Staff Director Ed Skala
On Wednesday, July 24, the House Subcommittee on Housing and Insurance held a hearing on “Housing Solutions: Cutting Through Government Red Tape.” The hearing covered a wide range of the housing industry, including single family homes, multifamily development, and government-assisted senior housing. Chair Warren Davidson (R-OH) set the tone for the hearing with a graphic to show that government regulations make the leasing process for Housing Choice Vouchers (HCVs) much more complicated than the “standard” leasing process for rental housing.
Four witnesses joined the hearing to provide expert testimony, including:
- Mr. Carl Harris (written testimony), Co-Founder and President, Carl Harris Co., Managing Partner, Harris Homes, and Chairman, National Association of Home Builders (NAHB)
- Mr. James H. Schloemer (written testimony), CEO, Continental Properties Company, and Chair, National Multifamily Housing Council (NMHC), on behalf of NMHC and the National Apartment Association
- The Honorable Paul Compton (written testimony), Managing Partner, Compton Jones and Dresher LLP
- Ms. Linda Couch (written testimony), Senior Vice President, Policy and Advocacy, Leading Age
Republican committee members and several witnesses argued that government regulation and requirements slow housing construction and increase costs. Schloemer testified that—on average—regulations at all levels of government account for about 40.6% of multifamily development costs. Harris cited environmental regulations such as the 2021 International Energy Conservation Code (IECC) as being particularly burdensome. Harris and Schloemer both rejected the Biden Administration’s recent proposal to cap rent increases at 5% each year for landlords with more than 50 units, arguing that rent controls lead to a decrease in housing supply.
While not fully disagreeing with the argument that government regulations sometimes constrain housing supply, Democratic committee members argued that government requirements can protect tenant safety and ensure better accessibility in housing. Congresswoman Sylvia Garcia (D-TX) pointed out that Congress is limited in its ability to cut down on “red tape” at the local level such as zoning and land use laws, which present some of the greatest barriers to increasing housing supply. Linda Couch of Leading Age discussed with Congresswoman Maxine Waters (D-CA) that accessibility requirements are needed to ensure enough housing is available for people with disabilities and seniors with accessibility needs.
Congressman Steven Horsford (D-NV) closed the hearing by referencing a letter he sent to the Biden Administration, “…requesting additional resources be provided to our local housing authorities such as increased allocation of Housing Choice Vouchers and the flexibility to make the programs fit local challenges.”
More information and a recording of the hearing is available on the committee website.