Senator proposes accountability for local governments on affordable housing regulations

The U.S. Senate Committee on Banking, Housing, and Urban Affairs convened on March 12, 2025, to address the pressing issue of housing affordability and the regulatory challenges that hinder progress. The meeting featured discussions on the need for effective federal policies to encourage states and localities to streamline housing regulations.

The session began with a reflection from a committee member on a past experience in the state legislature, where a town sought assistance with affordable housing. The member highlighted a disconnect between the desire for affordable housing and local mandates that could increase home costs, such as requiring sprinkler systems in single-family homes. This anecdote set the stage for a broader discussion on the regulatory environment affecting housing supply.

The committee examined the alarming shortfall of housing units in North Carolina, projected to reach 800,000 over the next five years. The member emphasized the importance of directing federal resources to jurisdictions that demonstrate efficient regulatory practices. A proposal was put forth to index state and local governments based on their regulatory execution, permitting costs, and processing times. The idea is that jurisdictions failing to meet acceptable standards would lose access to federal affordable housing resources.

Dr. Glaser, a witness at the meeting, supported the notion of using discretionary federal spending to incentivize states to permit more housing. He suggested that conditional funding could effectively encourage regulatory changes, particularly in states like California, where transportation spending might be a more persuasive tool than housing funding.

The conversation also touched on the accountability of state and local governments regarding housing costs. One member expressed concern over federal subsidies for states that overtax their populations, drawing a parallel to the need for accountability in housing regulation. The member argued that if local governments choose to impose stringent regulations that drive up housing costs, they should not expect federal assistance to offset those decisions.

The committee's discussions underscored a growing recognition of the need for federal intervention to alleviate the housing crisis. The focus was on ensuring that any federal policies prioritize the production of housing units rather than merely adjusting regulatory frameworks. The meeting concluded with a call for continued dialogue on how to effectively address the dual challenges of regulatory burdens and housing affordability.

As the committee moves forward, the emphasis will remain on crafting policies that not only encourage housing development but also hold local governments accountable for their regulatory choices.