Committee advances Habitat for Humanity materials-exemption bill, citing $7,000 per‑unit savings

The House Ways & Means Committee voted to advance HB 1132 after a presentation by Representative Franklin and follow-up questions about scope and fiscal impact.

Representative Franklin said the bill is written specifically to help Habitat for Humanity affiliates by exempting the cost of construction materials from certain state and local taxes, amounting to roughly $7,000 per unit and including a five‑year sunset. He said the exemption covers materials only, not tools or labor, and that the bill includes resale controls to reduce the risk of flipping homes.

Members raised concerns about limiting a benefit to a single nonprofit. One committee member, who described long experience building Habitat houses, asked how colleagues could be comfortable supporting a bill tailored to one organization; Franklin said the targeted approach improves the bill’s chance of passage and delivers immediate, measurable benefits to Habitat affiliates.

Representative Cannon asked about the fiscal note; Franklin pointed committee members to the bill’s supporting page showing an estimate of about $1.2 million in state cost over five years, based on 161 new homes and 16 rehabs annually. Chairman Williamson urged consideration of a cap after noting cumulative tax abatements across property portfolios.

The committee also pressed how resale restrictions would work. Franklin said the legislation contains requirements to limit flipping and that Habitat typically holds the note to maintain control over transfers.

After discussion, a member moved the bill forward and the committee voted by voice to advance HB 1132 out of committee.

The bill includes a five‑year sunset and proponents said the measure would expand affordable‑home construction capacity by reducing per‑unit costs for Habitat affiliates.