House Subcommittee Holds Hearing on Affordable Housing Development Regulatory Burdens
The House Financial Services Subcommittee on Housing and Insurance recently held a hearing to review “The Cost of Regulation on Affordable Multifamily Development.” At the hearing, expert witnesses identified specific regulations at the federal, state, and local levels that can increase the cost of affordable housing development.
Witnesses from the National Multifamily Council (NMHC), the National Association of Home Builders (NAHB), and Continental Properties Company, Inc., called for reforms to decrease the regulatory and compliance burdens faced by developers. In his opening remarks, Subcommittee Chair Sean Duffy (R-WI) cited a study published in June 2018 by NAHB and NMHC, “Regulation: Over 30 Percent of the Cost of a Multifamily Development,” which found that 32.1 percent of the cost of multifamily development can be attributed to state, local, and federal regulations.
The witnesses acknowledged that the vast majority of regulatory costs could be attributed to regulations at the state and municipal levels. Representative Maxine Waters (D-CA) encouraged her colleagues on the committee and the witnesses to investigate and consider ways the federal government could leverage federal funding for infrastructure development to relieve regulatory cost burdens at all levels.