WASHINGTON — The Rhode Island House Speaker outlined his state’s efforts on affordable housing as a model for governments nationwide during a Senate Budget Committee hearing. Speaker Joseph Shekarchi emphasized the need for increased housing production, advocating for zoning reform, expanded building land, and streamlined permits.
“My mantra has been– production, production and more production,” Shekarchi stated.
Shekarchi, along with other housing experts, urged a comprehensive government approach to address the affordable housing shortage. This includes reforming zoning laws and expediting permit processes.
“I really believe this is an all-hands-on-deck crisis,” said Sen. Patty Murray, Democrat of Washington. Murray highlighted her state’s deficit of 172,000 homes and questioned Paul Williams, executive director at the Center for Public Enterprise, about federal support for state and local governments.
Williams suggested the federal government should encourage municipalities to review local permitting and zoning processes that may delay or obstruct apartment construction projects.
Tax credits
Greta Harris, CEO of the Better Housing Coalition, proposed expanding the Low-Income Housing Tax Credit. Harris noted this program effectively aids in constructing and preserving affordable housing units, and recommended extending federal housing vouchers and providing down payment assistance.
“The low-income housing tax credit program has been extremely effective in allowing us to produce more housing units and also preserve existing affordable housing units,” Harris said.
She emphasized that homeownership builds wealth, allowing families to use home equity for retirement, education, or starting a business.
How a state can be successful
Committee Chairman, Rhode Island Sen. Sheldon Whitehouse, asked Shekarchi about Rhode Island’s successful housing strategies. Shekarchi explained that the state streamlined building permits and land disputes processes without overriding local control. Additionally, Rhode Island appointed a housing secretary to address housing issues, resulting in increased building permits.
Indiana Sen. Mike Braun inquired if housing should be managed by local governments and entrepreneurs. Harris countered, stating that market forces alone are inequitable, and all government levels should address the crisis.
GOP bashes Harris plans
Sen. Chuck Grassley, the committee’s top Republican, criticized the Biden administration for high housing costs and opposed Vice President Kamala Harris’s proposed $25,000 down payment assistance for first-time home buyers. Grassley argued that such policies could inflate housing prices.
Ed Pinto, senior fellow at the American Enterprise Institute Housing Center, supported this view, stating the assistance would likely raise home prices due to increased demand from program recipients.
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