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Witness proposes targeted sales‑tax waiver, removal of downtown credit cap and a housing acceleration fund
Summary
Testifying to the committee, Monroe Weinberger proposed a targeted sales‑tax waiver for new construction in Tier 1 areas to lower costs about 3%, recommended removing or raising the downtown/village tax credit cap, and pitched a one‑time revolving housing acceleration fund to sustain production amid high interest rates.
Monroe Weinberger told the Committee on General & Housing that a mix of financial incentives could accelerate housing construction in Tier 1 areas even in a constrained fiscal environment.
On incentives, Weinberger proposed a sales‑tax waiver limited to new construction in Tier 1 areas (he described Tier 1 as roughly 3% of the state's land area). He said this targeted waiver "would bring down the cost of housing by about 3% in these Tier 1 areas," adding he did not have a precise fiscal estimate and that any comprehensive analysis would be needed to compute the revenue impact.
Weinberger also described longstanding downtown and village historic preservation tax credits used to support small projects in historic downtowns. He said those credits have a cumulative cap and that the governor proposed raising the cap from $3 million to $5 million; Weinberger suggested eliminating the cap entirely, arguing the program "pays for itself" through increased local revenues when projects are built.
Finally, he proposed a housing acceleration fund: a one‑time, revolving investment vehicle to keep production moving during periods of high interest rates. Weinberger said states that have adopted such funds "have seen a dramatic increase in production of both market and affordable housing" and described the fund as repayable investments rather than annual appropriations.
Committee members asked how incentives and regulatory changes should be balanced; Weinberger recommended pursuing both, coupling regulatory reforms with pro‑active state investment to shorten timelines and produce measurable results. No formal financing proposal or fiscal note was presented at the hearing.
