Committee retains ‘missing middle’ housing bill after debate over funding and timelines

Representative Stavous told the committee House Bill 572 aims to spur construction of modestly priced single‑family homes and duplexes (so‑called “missing middle” housing) through three mechanisms: a statewide database of municipally and county‑owned land that is suitable for development; a low‑interest construction loan program administered through the Housing Champions fund; and shorter planning‑board review timelines for qualifying projects.

“None of it is mandatory. Everything in this bill is voluntary,” Stavous told members, describing an award‑winning pilot in Lebanon that used municipally owned parcels to build deed‑restricted homes priced near $275,000–$300,000 for municipal employees.

Budget questions dominated the discussion. The sponsor initially sought funding for a $150,000 database appropriation and a larger low‑interest loan fund that was later removed at the committee level. Members asked whether existing Housing Champions fund money could be used before it lapses; agency staff said $5 million was currently available for grants but would lapse unless spent.

The committee voted to retain the bill (motion by Representative Sweeney, seconded by Representative Cambrells); the roll call was 8‑1 to retain. Committee members directed staff to prepare HB2 amendment language that would remove the appropriation or adjust effective dates to enable use of existing Housing Champions funds before they lapse.