Transcripts For CSPAN2 Housing 20240705 : vimarsana.com

Democracy. , next on Affordable Housing before the House Financial Services Committee Topics include landuse regulation, zoning policies, homelessness, access to Affordable Housing in the role of congress and housing policy. The hearing is about two hours and 20 minutes. ■k ■h4e subcommittee on housing and insurance will come to order, the chair is authorized to declare recess at any time, this hearing i e affordability, government barriers and marketbased solutions. Without objection all members will have five legislative days wi submit entry materials to the chair for inclusion in the record, ilf recognize myself for five minutes to give an openingstate. Today the subcommittee will hold a hearing to discuss the lack of Affordable Housing in many communities across theng countr. In particular we will examine vel as marketbased solutions to bring down the cost of housing. Americans spend more on housing ■0 representing 33 of the familys budget. Families in many areas would love to get back to that level. The rise in home prices and brent hasic far exceeded the rae of wageconsidered affordable the immediate home prices 270,000 which is approaching four times thsehold income. Such an affordability is far beyond parts of the country known for the high cost of living like new york, San Francisco, washington, d. C. , nationwide median and home prices are six times the median■ Household Income. Where historically the advice was three times. This is one of the most diplome4atic■n■n mke lack of Affordable Housing thats why the committee has held multiple affordability hearings last spring on President Bidens sg increasing margin under mortgage costs on credit worthy borrowers, that idea was an insult toltse responded by protection act to eliminate harmful cost, the senate has so far failed to act. The rental market is facing similar challenges, renters are more cost burden than they have been in t over two while rent has gone up in some areas by doubledigit growth, Median Income for renter household actually went down between 2019 and for many, housing is becoming unattainable across the country, one in three young adults 18 34 still live parents, this impacts their ability to start a family, build wealth and contribu m economy. Seniors with fixed incomes and the burden of increasing healthcare cost are even more cost burden than ever when it comes to w housing. In ruralur areas where land is abundant price pressure still exist issues cost increase to rent and build manufacturers or modular homes. As we confront the affordability challenges and seems to get left out of the■x conversation that l of the expensive efforts of government have not solved this problem. They have added to it. The solutions that we need are markremove government barriers n the construction of housing and encourage greater private Sector Investment and housing. Of course many of my colleagues on the other side of the aisle in particular will likely see things differently and suggest that we have more government moreoles and more spending, maybe that is their measure of success, i hope we focus on affordilit t and interesting the same affordability crisis continues to getor not only have the policies failed but it seems Biden Administration wants to avoid accountability for the failure of their policies and oversight. In point for almost a year the committee has requested that the housing and urban development marciaudinistration Housing Affordability plan, since may the committee has offered at least every month that c the secretary naked appearce here, only to have her repeatedly declined to testify for outright refused to respond to numerous request, silence is a poor response to a crisis. The American People deserve Greater Transparency in how the government operates especially. Ensuring accountability is one of the fundamental purposes of this committee and i hope the secret■aary ll final■■nly aee to appear before our committee next year. In the meantime without the administration and put, the committee will continue to explore how Government Policies are get soting to the high cost of housing and what privatesector efforts can do to address the critical issue for those most in need. And i now recognize the Ranking Member for this hearing. Presle statement. Thank you. We are in a s housing crisis, sing is out wayne supply first urban and shelter to increasingly unaffordable. Respective homebuyers are facing ffacrecord high prices in millis households are cost burden,am sending elevated amout of income on housing. Several factors include Affordable Housing. Democrat and degree to address state and local barriers t to increase the Home Construction but that is not enough. The joint center for housing studies at Harvard University testify before congress, even of measured as zoning reform in be sufficient to bring down the cost of housing levels within reach of the lowest income ameran central to the question of how to address the affordable h housing crisis is answering the question affordable to whole. To close Affordable Housing gap for lower income households there needs to be assistant for development and rental income over time. To put this clearly expanded public subsidies will be needed to increase and preserve access to Affordable Housing for millions of americans. If believe housing is infra structure. We must adequately support and nd programs that is successful in expanding Affordable Housing access. Its a bottle to strengthen and improvoted housing. I also hear from my constituents in the massachusetts across massachusetts, a quarter of all residents that spent half of the income or more on housing. Its now the second most expensive city in the country to rent and with the median rent forpartment is over 3000. , 3000. In east boston between 20,112,021, data showed the cost of a singlefamily home shot up 22 the shock of any boston neighborhood. I hope today we can have an honest conversation about the Affordable Housing crisis and the extent to which public, private and publicprivate solutions are adequate to address thesete challenges. I look forward to hearing from our witnesses f time. Thank you, today we welcome the testimony of seth appleton, he is the president of the u. S. Mortgage insurers, doctor Emily Hamilton who is a Senior Research fellow and■ ■ directof michelle, mr. Michelle is the Vice President and director of the center for monitoring financial alternative at the catoto institute. Arianna royster, the president of the residential, she is here on behalf of the National Association and the president and ceo of the national lowIncome Housing coalition. We thank you for taking time to be here, that objection your written stts wil be made part of the record, mr. Appleton you are now recognized for five minutes to give your oral remarks. Thank you. Chairmking member presley, thank you for inviting me to testify today. Its great to see my longtime former boss on themr subcommitt. Including his staff ive served and housing policy and assistant secretary of hud and now president zof the u. S. Morage t insurers. Member companies are in the market every day the plane private capital to provide access to low down payment mortgage financing primarily to firsttime and low and moderate income buyers while simultaneously protecting taxpayers from credit risk, we cannot solve for the scarcity of Affordable Housing supply or high Interest Rates we can solve for what is the primary impediment for many borrowers the need for a large cash down■÷ payment with private homebuyers to put down as little as 3 begin to build intergenerational wealth as homeowners. Private advisor crackle partners to the governmentsponsored enterprises, lenders, state Housing Finance and others on initiatives to sustainably expand access to homeownership. Today more than 1. 5 trillion of mortgages are backed by private am i and private am i provides borrowers access to affordable e gse, taxpayers from credit risk by deploying private capital and a first loss position. One prominent example is a way that private am i has helped the risk with gse in the conservatorship private am i pay over 60 billion, every dollar paid by a private am i is a dollar that needed gse, or the taxpayers that stand behind them need toho pay. The analysis from the urban institute found that the loss severity of gse loans without private am i was 11point to percent higher than the severity of losses for loans with it. To that end if Congress Takes up gse reform and maintain the congressional provision to private am in establishing standard coverage as a requirement would ensure private capital and continue to promote safety and soundness in the. I would like to talk briefly that steps to ensure the private am i is more impactful to support while conventional mortgages backed by private am i is the most optionri for loan payment borrowers was 2018. Several u. S. Government agencies directly ensure or guarantee payment loans most notably the federal housing a administration. He targeted role of fha in the presence and depth of its taxpayerfunded tax dollars, its an important complement to private advice that work in serving those that may not have access to the conventional market. But as a Government Agency fully backed by capital levels are significantly different than those of the private sector. Policymakers should promote a clear and consistent corrugated approach to Housing Finance that prevents undue competition between Government Programs in the privatere sector. Om whenen private capital is crowdd out of the marketplace by becker under governmene taxpayer. In the conventional market the gse pilot programs can shift risks to past into taxpayers by private capital u. S. Am i of fha essay on prior approval products which members of this committee took an interplementar result in proper oversight of the gse pilot in a transparent and objective prospect for products in activity. One other area of concern recently proposed is the gain regulation in consumer groups, Mortgage Market participant and members of this committee have righved toatively impact certain banks to originate and hold high loantovalue ratio mortgages importhio. The u. S. Bank capital rule should recognize the risko mitigating benefits of private am i and promote a level Playing Field among a Government Program and Bank Portfolio execution. What other action congressav can take outside of this jurisdiction is to restore the permanent individual income Tax Deduction for am i premiums available for tax or 2007 2021 u. S. Am i thanks congressman buchanan for introducing legislation to do just that. The middle class mortgage Insurance Premium act of which several members of his committee cosponsor. I would also be remiss if i didnt also think members of this committee for their work to ensure the sec recently at a conflict of interest rolld appe. Am i members demands risk and capital we greatly appreciate your engagement on this issue too. To close, u. S. Am i encourages policymakers to continue to recognize the Important Role private amm i plays aloection ie lenders and the stability it contributes to the overall finance system. Thank you. Ca thank you mr. Appleton, doctor hamilton you are recgonized for five minutes to give yourr oralem remarks. The future davidson, Ranking Member presley and members of the subcommittee. Im Emily Hamilton, Senior Research fellow at george mason university,e. Local government have imposed numerous limits on what kinds of housing can be built on multifamily housing restrictions on manufactured housing and requirements for minimum lot size limit how much housing the market can provide enjoys up the price of housing that does get built. These roles are contributing to deary and to particularly for households that rent while the share of householdsha of income the medin renters spend on housing has increased by more than 25 since then. Private sector homebuilders can play the primary role in addressing the growing affordability problem but only with zoning out of the way. In. Ill provide three examples that have rolled back landuse restrictions make it feasible to build more housing at a lower price. First, minimum lot size reduction, second multifamily construction through transit den washington, d. C. Region and third legalization of accessory dwelling units in california. First, reducing minimum lot size requirement in houston. In 1998 houston policymakers reduced minimum lot size requirements from 5000 square feet down to 1400 square fee in. Houstons reform set offff a bom and small lot singlefamily ss within the interlude, policymakers expanded this reform to cover the entire city in 2013. Nearly 80000 small lot houses have been built sense then. The median house price in houston is lower than the na population and Economic Growth than in the country as a whole. That isat in part due to the sml construction. Second, allowing Transit Oriented Development in the washington, d. C. Egion. Ill be first to say that the d. C. Region has plenty of to new Housing Construction. However, relative to most othere excel at permitting multifamily construction. Particularly along transit corridors. Beginning in the 1960s, officials in Arlington County virginia began planning for multifamily construction in areas that were originally developed with low rise commercial building. In part, based on arlington success, policy m Fairfax County virginia has embraced development and more living and new neighborhoods to be built and Industrial Areas in the navyd. Among the regions where many of the countrys highest paying jobs are located inclu San Francisco, seattle and washington, washington has the lowest median house price and one reason because it permits multifamily housing double or more in boston, los angeles, new york and sanford school. Third legalizing dwelling units in california. The housing supply and affordability americas are facing in the state policymakers are beginning to set limits on locality authority to curb Housing Construction. P california where these challenges are most dire has led thee way. , the state has been particularly successful in legalizing accessory dwellinqjg tmunits. Small apartments located at the site of the Single Family house. In some parts of the most notably los angeles adu construction drastically accelerated following the reforms in 2017. Today one and four residential permits in the city of l. A. Is key contributor to the u. S. Housing affordability challenges. As theyve shown zoning rules limit construction especially relatively lowcost Housing Construction. Examples from across the country show that were policymakers have lower thesev÷d bar■briers, houg ns increased. Places that are more open to Housing Construction can improve affordability housing. The private market can improve and reduce house prices when and where it isre launching. Thank you doctor y hamilton. Michelle you are recgonized for five minutes to give your oral remas. Good morning chairman dadson, members of the committee thinking for the opportunity to testify again. M r for the center for monetary and financial alternatives at the cato institute. In the views that i express are my own and should not be construed as■ represented at the position of the cato institute. In my testimony i argue the best way for the federal government le is to reverse course on many longstanding federal policies. It is true home equity represents a large portion of many and it does not follow a federal policy should promote homeownership or especially housing debt. , home equity on home price appreciation and attributes fundamentally addons was affordability housing. And federal policyndnd Services Less affordable. Particularly because artificially boost demand inherently supply constrained markets. Over approximately in the last decade, home price rate was nearly double the income growth. As through much of the last several decades, i would like to highlight three particular problems regarding federal first youre only three institutions fannie mae, freddie. And fha, the rattle housing has been escalating for■n■9 decs along with housing cost, correlation that is no accident. Combined just fannie and freddie stood behind half of outstanding mortgage debt bou for decades ad some years being responsible for aharef 70 of the market, from 2009 2020, fannie and freddie had an annual share of the mortgagebacked Affordable Housing<\/a> before the House Financial Services<\/a> Committee Topics<\/a> include landuse regulation, zoning policies, homelessness, access to Affordable Housing<\/a> in the role of congress and housing policy. The hearing is about two hours and 20 minutes. \u25a0k \u25a0h4e subcommittee on housing and insurance will come to order, the chair is authorized to declare recess at any time, this hearing i e affordability, government barriers and marketbased solutions. Without objection all members will have five legislative days wi submit entry materials to the chair for inclusion in the record, ilf recognize myself for five minutes to give an openingstate. Today the subcommittee will hold a hearing to discuss the lack of Affordable Housing<\/a> in many communities across theng countr. In particular we will examine vel as marketbased solutions to bring down the cost of housing. Americans spend more on housing \u25a00 representing 33 of the familys budget. Families in many areas would love to get back to that level. The rise in home prices and brent hasic far exceeded the rae of wageconsidered affordable the immediate home prices 270,000 which is approaching four times thsehold income. Such an affordability is far beyond parts of the country known for the high cost of living like new york, San Francisco<\/a>, washington, d. C. , nationwide median and home prices are six times the median\u25a0 Household Income<\/a>. Where historically the advice was three times. This is one of the most diplome4atic\u25a0n\u25a0n mke lack of Affordable Housing<\/a> thats why the committee has held multiple affordability hearings last spring on President Biden<\/a>s sg increasing margin under mortgage costs on credit worthy borrowers, that idea was an insult toltse responded by protection act to eliminate harmful cost, the senate has so far failed to act. The rental market is facing similar challenges, renters are more cost burden than they have been in t over two while rent has gone up in some areas by doubledigit growth, Median Income<\/a> for renter household actually went down between 2019 and for many, housing is becoming unattainable across the country, one in three young adults 18 34 still live parents, this impacts their ability to start a family, build wealth and contribu m economy. Seniors with fixed incomes and the burden of increasing healthcare cost are even more cost burden than ever when it comes to w housing. In ruralur areas where land is abundant price pressure still exist issues cost increase to rent and build manufacturers or modular homes. As we confront the affordability challenges and seems to get left out of the\u25a0x conversation that l of the expensive efforts of government have not solved this problem. They have added to it. The solutions that we need are markremove government barriers n the construction of housing and encourage greater private Sector Investment<\/a> and housing. Of course many of my colleagues on the other side of the aisle in particular will likely see things differently and suggest that we have more government moreoles and more spending, maybe that is their measure of success, i hope we focus on affordilit t and interesting the same affordability crisis continues to getor not only have the policies failed but it seems Biden Administration<\/a> wants to avoid accountability for the failure of their policies and oversight. In point for almost a year the committee has requested that the housing and urban development marciaudinistration Housing Affordability<\/a> plan, since may the committee has offered at least every month that c the secretary naked appearce here, only to have her repeatedly declined to testify for outright refused to respond to numerous request, silence is a poor response to a crisis. The American People<\/a> deserve Greater Transparency<\/a> in how the government operates especially. Ensuring accountability is one of the fundamental purposes of this committee and i hope the secret\u25a0aary ll final\u25a0\u25a0nly aee to appear before our committee next year. In the meantime without the administration and put, the committee will continue to explore how Government Policies<\/a> are get soting to the high cost of housing and what privatesector efforts can do to address the critical issue for those most in need. And i now recognize the Ranking Member<\/a> for this hearing. Presle statement. Thank you. We are in a s housing crisis, sing is out wayne supply first urban and shelter to increasingly unaffordable. Respective homebuyers are facing ffacrecord high prices in millis households are cost burden,am sending elevated amout of income on housing. Several factors include Affordable Housing<\/a>. Democrat and degree to address state and local barriers t to increase the Home Construction<\/a> but that is not enough. The joint center for housing studies at Harvard University<\/a> testify before congress, even of measured as zoning reform in be sufficient to bring down the cost of housing levels within reach of the lowest income ameran central to the question of how to address the affordable h housing crisis is answering the question affordable to whole. To close Affordable Housing<\/a> gap for lower income households there needs to be assistant for development and rental income over time. To put this clearly expanded public subsidies will be needed to increase and preserve access to Affordable Housing<\/a> for millions of americans. If believe housing is infra structure. We must adequately support and nd programs that is successful in expanding Affordable Housing<\/a> access. Its a bottle to strengthen and improvoted housing. I also hear from my constituents in the massachusetts across massachusetts, a quarter of all residents that spent half of the income or more on housing. Its now the second most expensive city in the country to rent and with the median rent forpartment is over 3000. , 3000. In east boston between 20,112,021, data showed the cost of a singlefamily home shot up 22 the shock of any boston neighborhood. I hope today we can have an honest conversation about the Affordable Housing<\/a> crisis and the extent to which public, private and publicprivate solutions are adequate to address thesete challenges. I look forward to hearing from our witnesses f time. Thank you, today we welcome the testimony of seth appleton, he is the president of the u. S. Mortgage insurers, doctor Emily Hamilton<\/a> who is a Senior Research<\/a> fellow and\u25a0 \u25a0 directof michelle, mr. Michelle is the Vice President<\/a> and director of the center for monitoring financial alternative at the catoto institute. Arianna royster, the president of the residential, she is here on behalf of the National Association<\/a> and the president and ceo of the national lowIncome Housing<\/a> coalition. We thank you for taking time to be here, that objection your written stts wil be made part of the record, mr. Appleton you are now recognized for five minutes to give your oral remarks. Thank you. Chairmking member presley, thank you for inviting me to testify today. Its great to see my longtime former boss on themr subcommitt. Including his staff ive served and housing policy and assistant secretary of hud and now president zof the u. S. Morage t insurers. Member companies are in the market every day the plane private capital to provide access to low down payment mortgage financing primarily to firsttime and low and moderate income buyers while simultaneously protecting taxpayers from credit risk, we cannot solve for the scarcity of Affordable Housing<\/a> supply or high Interest Rates<\/a> we can solve for what is the primary impediment for many borrowers the need for a large cash down\u25a0\u00f7 payment with private homebuyers to put down as little as 3 begin to build intergenerational wealth as homeowners. Private advisor crackle partners to the governmentsponsored enterprises, lenders, state Housing Finance<\/a> and others on initiatives to sustainably expand access to homeownership. Today more than 1. 5 trillion of mortgages are backed by private am i and private am i provides borrowers access to affordable e gse, taxpayers from credit risk by deploying private capital and a first loss position. One prominent example is a way that private am i has helped the risk with gse in the conservatorship private am i pay over 60 billion, every dollar paid by a private am i is a dollar that needed gse, or the taxpayers that stand behind them need toho pay. The analysis from the urban institute found that the loss severity of gse loans without private am i was 11point to percent higher than the severity of losses for loans with it. To that end if Congress Takes<\/a> up gse reform and maintain the congressional provision to private am in establishing standard coverage as a requirement would ensure private capital and continue to promote safety and soundness in the. I would like to talk briefly that steps to ensure the private am i is more impactful to support while conventional mortgages backed by private am i is the most optionri for loan payment borrowers was 2018. Several u. S. Government agencies directly ensure or guarantee payment loans most notably the federal housing a administration. He targeted role of fha in the presence and depth of its taxpayerfunded tax dollars, its an important complement to private advice that work in serving those that may not have access to the conventional market. But as a Government Agency<\/a> fully backed by capital levels are significantly different than those of the private sector. Policymakers should promote a clear and consistent corrugated approach to Housing Finance<\/a> that prevents undue competition between Government Programs<\/a> in the privatere sector. Om whenen private capital is crowdd out of the marketplace by becker under governmene taxpayer. In the conventional market the gse pilot programs can shift risks to past into taxpayers by private capital u. S. Am i of fha essay on prior approval products which members of this committee took an interplementar result in proper oversight of the gse pilot in a transparent and objective prospect for products in activity. One other area of concern recently proposed is the gain regulation in consumer groups, Mortgage Market<\/a> participant and members of this committee have righved toatively impact certain banks to originate and hold high loantovalue ratio mortgages importhio. The u. S. Bank capital rule should recognize the risko mitigating benefits of private am i and promote a level Playing Field<\/a> among a Government Program<\/a> and Bank Portfolio<\/a> execution. What other action congressav can take outside of this jurisdiction is to restore the permanent individual income Tax Deduction<\/a> for am i premiums available for tax or 2007 2021 u. S. Am i thanks congressman buchanan for introducing legislation to do just that. The middle class mortgage Insurance Premium<\/a> act of which several members of his committee cosponsor. I would also be remiss if i didnt also think members of this committee for their work to ensure the sec recently at a conflict of interest rolld appe. Am i members demands risk and capital we greatly appreciate your engagement on this issue too. To close, u. S. Am i encourages policymakers to continue to recognize the Important Role<\/a> private amm i plays aloection ie lenders and the stability it contributes to the overall finance system. Thank you. Ca thank you mr. Appleton, doctor hamilton you are recgonized for five minutes to give yourr oralem remarks. The future davidson, Ranking Member<\/a> presley and members of the subcommittee. Im Emily Hamilton<\/a>, Senior Research<\/a> fellow at george mason university,e. Local government have imposed numerous limits on what kinds of housing can be built on multifamily housing restrictions on manufactured housing and requirements for minimum lot size limit how much housing the market can provide enjoys up the price of housing that does get built. These roles are contributing to deary and to particularly for households that rent while the share of householdsha of income the medin renters spend on housing has increased by more than 25 since then. Private sector homebuilders can play the primary role in addressing the growing affordability problem but only with zoning out of the way. In. Ill provide three examples that have rolled back landuse restrictions make it feasible to build more housing at a lower price. First, minimum lot size reduction, second multifamily construction through transit den washington, d. C. Region and third legalization of accessory dwelling units in california. First, reducing minimum lot size requirement in houston. In 1998 houston policymakers reduced minimum lot size requirements from 5000 square feet down to 1400 square fee in. Houstons reform set offff a bom and small lot singlefamily ss within the interlude, policymakers expanded this reform to cover the entire city in 2013. Nearly 80000 small lot houses have been built sense then. The median house price in houston is lower than the na population and Economic Growth<\/a> than in the country as a whole. That isat in part due to the sml construction. Second, allowing Transit Oriented Development<\/a> in the washington, d. C. Egion. Ill be first to say that the d. C. Region has plenty of to new Housing Construction<\/a>. However, relative to most othere excel at permitting multifamily construction. Particularly along transit corridors. Beginning in the 1960s, officials in Arlington County<\/a> virginia began planning for multifamily construction in areas that were originally developed with low rise commercial building. In part, based on arlington success, policy m Fairfax County<\/a> virginia has embraced development and more living and new neighborhoods to be built and Industrial Areas<\/a> in the navyd. Among the regions where many of the countrys highest paying jobs are located inclu San Francisco<\/a>, seattle and washington, washington has the lowest median house price and one reason because it permits multifamily housing double or more in boston, los angeles, new york and sanford school. Third legalizing dwelling units in california. The housing supply and affordability americas are facing in the state policymakers are beginning to set limits on locality authority to curb Housing Construction<\/a>. P california where these challenges are most dire has led thee way. , the state has been particularly successful in legalizing accessory dwellinqjg tmunits. Small apartments located at the site of the Single Family<\/a> house. In some parts of the most notably los angeles adu construction drastically accelerated following the reforms in 2017. Today one and four residential permits in the city of l. A. Is key contributor to the u. S. Housing affordability challenges. As theyve shown zoning rules limit construction especially relatively lowcost Housing Construction<\/a>. Examples from across the country show that were policymakers have lower thesev\u00f7d bar\u25a0briers, houg ns increased. Places that are more open to Housing Construction<\/a> can improve affordability housing. The private market can improve and reduce house prices when and where it isre launching. Thank you doctor y hamilton. Michelle you are recgonized for five minutes to give your oral remas. Good morning chairman dadson, members of the committee thinking for the opportunity to testify again. M r for the center for monetary and financial alternatives at the cato institute. In the views that i express are my own and should not be construed as\u25a0 represented at the position of the cato institute. In my testimony i argue the best way for the federal government le is to reverse course on many longstanding federal policies. It is true home equity represents a large portion of many and it does not follow a federal policy should promote homeownership or especially housing debt. , home equity on home price appreciation and attributes fundamentally addons was affordability housing. And federal policyndnd Services Less<\/a> affordable. Particularly because artificially boost demand inherently supply constrained markets. Over approximately in the last decade, home price rate was nearly double the income growth. As through much of the last several decades, i would like to highlight three particular problems regarding federal first youre only three institutions fannie mae, freddie. And fha, the rattle housing has been escalating for\u25a0n\u25a09 decs along with housing cost, correlation that is no accident. Combined just fannie and freddie stood behind half of outstanding mortgage debt bou for decades ad some years being responsible for aharef 70 of the market, from 2009 2020, fannie and freddie had an annual share of the mortgagebacked Security Market<\/a> averaging 70 . If we include jenny may security backed by faa mortgages, the federal share of the mbs market average 92 per year over that period. Second, federal spending since 2020 has only worsened the effects of these demands inducing housing policies. Congress passed five massive spending bill started in november of 21 totaling seven af iorsened inflation and exacerbated the labor market problem amphetamine related abnormally high price increases that americans continue to anexperience today. Third the Federal Reserve<\/a> has contributed to highererou to sut the mbs market and therefore fueling more leverage to buy homes. The fed is guilty of this policy mistake even in the low interestrate environment when prices naturally tend to rise reflecting the lower rate. Prior to 2008 the fed rarely held in me mbs on its Balance Sheet<\/a> and ask so they can in those gsout holding massive securities, between 2010 to 22, the lowest amount held is 827 billion in march of 2020 to march of 2022, the fed went from holding 1. 4 trillion to 2. 7 trillion. 2. And althoughhe amount has declined a bit, is still stands at nearly two and half trillion dollars. In the face of rapidly rising price level home prices the mortgagebacked security purchase policy made very little sense the problem with virtually all of the housing policies that we have they are geared toward increasing demand and because Housing Market<\/a>s are almost always supply constrained these policies constantly put upward pressure on prices and rent. These policies include everything from supporting the gses to providing housing allowances to\u25a0 mily well as providing vouchers, the economic principles are exactly the same for both the assistance and subsidies that pay for housing. They place upward pressure on prices because they increase the number of dollars chasing the same amount of housing. They do nothing to address the broader economic or social issues that affect peoples ability to earn higher income x wealth, nothing except put people into a riskier economic situation. , congress should payacsing market and ill close with three sensible changes, first define and enforce the excessive use provision that are in fannie and freddies chargers, sackett narrowed the gse focus to the financing of all thery homes in other words no more Vacation Home<\/a> financing. Third limit the loan loss in the fha mortgagens from 100 . Thank you for your consideration im happy to answer any questions you have. Take you mr. Michelle. You are now recognized for five minutes to give your oral remarks. Ut good morning chairman daoners of the subcommittee. Thank you for the opportunity to testify today my name is arianna roystere and the president of ed firm with 10000 multifamily units, please to testify on behalf of the nearly 100,000 combined members of the national the natl Housing Council<\/a> i would like to affordability challenge, some obstacles we face in meeting this challenge and several potential solutions. My written statement contains greater d areas. The nations affordability challenge is from one simple fact, there is some way not enough residentialnio meet the growing consumer m demand. Decades of under supply have set us back, the nation needs 4. 3 million new Apartment Homes<\/a> by 2035. At the same time, ourre members report the economic and regulatory challenges are causing them to cut back sign activities and in some cases by as much as 50 . Making matters worse a Industry Data<\/a> shows on average expenses increased 9. 3 with insurance and labor cost with leading contributors. Insurance ise especially troublin\u25a0 gmily property Insurance Premium<\/a>s soared 26 yearoveryear. Out of every dollar collected 93 cents isoperational expenses. With such a slim margin, raising operating cost impacted sustainability ofli rental housg while placing additional upward pressures on rent, expanding adderall Regulatory Environment<\/a> is a growing challenge as well. State and local laws already have a really regulate the relationship between the rental Housing Provider<\/a> in the resident. Adding federal requirements increases market in certainty and residence in Housing Provider<\/a>s and this incentivizes invest in traininggi investmentt housing. The white house blueprint for a renters bill of rights issued earlier thismp year greatly concerns the rental housing industry, while intention to contemplate sweeping changes the federal housing policy including significant reach by the federal government with the relationship between residence and Housing Provider<\/a>s. Even rent control for property backed by fannie mae and freddie. The most significant regulatory administrative and political barrier to the development of new rental housing are often l of theel government. These must be addressed to expand access to housing. We urge congress to consider several strategies to address the h challenge. First to incentivize states and localities to remove or mitigate local barriers to delnt of rental housing bypassing the yes in my backyard or hr 3507 and the industry banks representative for their bill. Sackett improve the Section Eight Housing Choice Voucher Program<\/a> which is the primary method for million lowincome households pay their rent. Improvements are needed to encouragepr more voluntary prive sector participationgd and streamline regulation for federal dollars in effectively and efficiently. Choice h. R. 40 606 adds many of these issues, wemb appreciate the leadership of Ranking Member<\/a> cleaver and representative, for this stewardship on the bill we urge the committee to consider this important legislation. Third congress and the Administration Must<\/a> keep the Housing Provider<\/a>, resident relationship at the state and local level. Onete proactive step is to suppt a bill sponsored by representative hr 802, the respect state housing law in requirement returning theth a eviction policy back to state and local levels finally both cs and the Administration Must<\/a> reject rent control is a viable solution to Housing Affordability<\/a> decades of research in the case show the rentnt regulation devastates rental hsi and harms affordability. Ensuring an adequate supply of quality housing is critical to continue Economic Prosperity<\/a> americans nationwide. Federal policymakers should focus on a sustainable solution and oide challenges and inadvertently harm consumers in the process. B2 i thank you for theti opportuniy to testify today, i look forward to your questions. Thank you. You are now recognized for five minutes to give your oral remarks. Thank you. Chairman davidson, vickie member presleys subcommittee, taken for the opportunity to testifyng today. Housing costs are out of reach st many of the lowest income renters in america. In your districts and in your hometown rat is far higher than what the lowest income and lowest marginalized people including seniors, people with disabilities, veterans and working families can pay. As a result, 10 million of the lowest income venture household pay half of the limited income they need to put food on the table, purchase needed medications or otherwise make ends meet. Pain so much on rent c financial emergency or unexpected expense away from facing eviction in the worstcaseomelessness. During the pandemic,c, policymakers responded to unprecedented t need with histoc protection and resources that is cut eviction half millions of renters housed in many people expressing homelessness to fety, many of these essential measures were af bipartisan and they significantly reduce housing instability and unnecessary suffering, during the pandemic, congress showed that when it hasde the will it n effectively immediately help lowincome renters and people stable housing. And this can be dated a bipartisan way and today renters are struggling more than ever, just as the epidemic protection expired emergency resources were depleted, renters reinjured a brutal Housing Market<\/a>. We skyrocketing that and high inflation. As rent has increased so too has homelessness. The u. S. Jail has found a 100 per month medium increase in rent is associated with a 9 increase in homelessness in that community. Over the last few years rent increase by nearly 200 per month, even with the recent stabilization of rent cost, the rapid inflation during 2021 in the first half i of 2022 has doe sign\u25a0jifant damago affordability especially for the lowest income renters. And its necessary such improvements on their own wont make housing affordaeextremely d the market on its own cant build and operate affordable to households with the lowest income in the page that doesnt cover the cost. And its a basic market value of th f fill the gaps to protect them and prevent homelessness. This can be done through longterm investments to make rental assistance universally available for all eligible household needs, to preserve and expand the supply of homes of fohe lowest income, provide ongoing resources to prevent eviction and homelessness and strengthen and enfo\u25a0urce printergt protect. There are a number of bipartisan deals before the subcommittee that would advance these goals and have a measurable impact on the housing crisis in the urge advance them,to such as the family stability and opportunity vouchers act, the eviction crisis act and other bipartisan bills to improve and streamline existing housing programs, build housing for people with the lowestougre, improve oversight and federal disaster Housing Resources<\/a> and increase access to fair and Affordable Housing<\/a>. I also urge this committee and congress to advance comprehensive solution such as those in representative waters to essential bills, housing Crisis Response<\/a> act and the ending homelessness act. The bottom line is this, rents have skyrocketed, eviction filings are rising and homelessness is increasing. The countries lowest income re stay housed, there is a path forward. Congress can just as it did during the act in a bipartisan way to save lives, save money and provide housing stability for many. Thank you again for the opportunity to be here today and i look forward to your question. Thank you. The chair recognizes the Ranking Member<\/a> of the fls. Waters from r one minute to give an opening statement. Thank you very much, mr. Chairman i would like to ret the ability to take a moment of personal privilege to acknowledge the announcement of her chairman that will be senate. Thank you very much. Again i would like to take this moment personal privile t her chairman that will be retiring at the end of this term. I say when republicans took control earlier this yearemo ing myself were wondering what type ofof chairman into words what ad respectful. In the Wellness Committee<\/a> in a way that respects the importance oflthough our side sometimes uses the rules to expend the debate and ensured all members democrats and republicans have the chance to share their views and while we dont agree on every policy, many for that matter i personally worked well with the chair on many issues from passing a national emergency, rental Assistance Program<\/a> andt e communitdevelopment and financial enter Financial Institutions<\/a> to reauthorizing terrorism Risk Insurance<\/a> act in the export and eventually we got on that one. And i was up until 3 00 a. M. And we also worked closely to pass legislation before he rose to his leadership position to improve ended Angel Investor<\/a> to support small businesses. I will ahat i recognize that this decision to retire was likely not an easy one that the American Public<\/a> would appreciate the service that he and his family have given over the past 20 years and i hope the chairman knows that we still have work to bse other items that are possible for us to continue to prove to the American People<\/a> of bipartisanship is still possible. With that i will go into my one minute. Thank you. From urban to rural america, there is simply unaffordable homes in the gap between supplye and demand continues to during one of the worst housing andng homelessness crisis our nation has seen, House Republicans<\/a> have put forward proposals that only exacerbate the problem mainly they want to federal housing pam private , its also telling despite Mortgage Rates<\/a> quadrupling to in housing costs going up 47 since the pandemic, this is the first hearing that weve h affordability. I am hopeful that this hearing opposite side of the aisle ready le to end theioen Affordable Housing<\/a> crisis. Thank you, i yield back the ba time. Thank you the Ranking Member<\/a> will turn to member questions and i recognize myself for fivee consequences for some of our approach we spend money as if tax collection does not matter and as if deficits dont matter in the rocket massive debt, we spend money more than we can collected taxes, we spent\u25a0 mony more than we can have people buy up and debt the Federal Reserve<\/a> is the lender of last resort that is monetize\u25a0 debt, not just to an actual unit mortgagebacked security but they loaded up on treasury back when they were reallyy we have shown that weho can. Money, a part of monitored monetary theory is true but we vemount of stuff with the money that you have printed. Inflation in the priceays, distortion of the Federal Reserve<\/a> ongoing buying mortgagebacked security exacerbates the problem of mortgageb interestrate. Frankly we are not sure whether the rate isf artificially high r artificially low because you cannot get a true discovery of the price signal. I just wonder if you could tie together a little more the idea that this doesnt plate the price and we see across the country as much as six times thn afford to purchase a house in historic metrics. Could you talk a little bit more about the price discovery with the demandside policy and doesnt that lead to a problem where we need more supply . Youre always going to have supply constrained Housing Market<\/a>s whether the lack of available land that people want to live or the fact that it took a little while to build a house or an apartment building. And layering on top of that, everything that we d from a regulatory perspective is to make it easier to get a loan, there is constant pressure to lower down payment requirements to increase down payment assistance to relax under lighting and make it easier to get along wit lower income than previously. All of those things takewa any o lower the price it would do the opposite. The increase in incentive to increase the price and thats what weve been seen for decades and decades and decades. This is been going on for a long time, we have a short memory that this happened with hha in theep the break and that is come back and came back again. All the said were doing it agag. Thank you for that i turned to mr. Appleton, when you look at a situation where you have 82 of the market that has an interestrate below 8 , this ise dynamic affecting prices and availability and supplies as well, historically peotheir homa home in the go with new construction often and that turned into Affordable House<\/a>s, what is a dynamic like affected affordability is a locking effect of those who have homes with historically low Interest Rate<\/a> coupled with the historically under built supply financial crisis particularly entrylevel supply for a lot of reasonsns discussed earlier, thats why the private mortgage is dedicated to private\u25a0o capital o helping credit worthyed americas home worthy americans access the Mortgage Market<\/a> with less than a 20 down payment. Thank you for that and we appreciate the private sector, one of the things were going to highlight extensively this morning is a need to increase supply of affordability challenges and one way we do that is through zoning reform and mandating high density housing that something the hud wants to do they want to reach past local and how do we strike the balance between efforts in washington to have central planners say we know right here you need high densi housing in the oh affordability for communities to make their own decisions of the planning and zoning. Imarily an issue of state and local reform, generally the proposal that we hear from the federal government are to encourage localities to inform their landuse restriction through federal spending programs, there is ahr mismatchx between this tool in the places where we most need to see reform. In general the most exclusionary are also thee federal grants may mean the least. I do think there is absolutelyea role for members of congressv other leaders to use their pulpits to draw attention to this matter. Hank you for that, e is expired and i now recognize the general woman from massachusetts ms. Presley for five minutes. Thank you mr. Cha, thinkable for joining us for thisri hearing. I have been in congress for five years the best advice i received in freshman oriention was the process of legislating government is very easy, long days to forget the plot. The plot is the people and i do believe on the issue of housing this committee has lost the t oting us 11 months to have one hearing on housing when this is the issue of great consequences determining health outcomes, social and economic mobility it is the transcendent issue. It is urban, it. Is rural and when im in community and the fact that i had a town hall last night with thousands of my housing dominated not discussion, housing is a fundamental human e skyrocketed, it is a right that \u25a00is become less attainable for working families across the country especially in the massachusetts, the cost of a singlefamily home is 11 times greater then it was in to purchase the median singlefamily home they would need an annual income of at least ration from homeownership this is what are the greatest challenges of our time and we have got to confront and do so , Inclusionary Zoning<\/a> laws are contributing to housing shortages with her zoning laws immigrants, people with disabilities and lowincome families from living in certain communities, how is singlefamily zoning ability multifamily housing stifle the supply of housing and raise housing heighted enterprises. One of the challenges in our \u25a0iHousing Market<\/a> is a supply of apartments not keeping up with demand. Admitted can be duties there is not enough apartments for the people who live there or who want to move there, its restrictive local zoning and these local laws restrict the construction of any cat of apartmentsn and affordable apartments which drives up costs for everyone using the lowest income people the most in these restrictive local zoning laws mn segregation and racial equities. The federal government should do all they can to incentivize or require state localities to remove these restrictive local zoning laws so the market can build apartments who are middle income people. Even when that happens, housing will not be afforey lowincome. Because even if the restrictions arent in place the private market on its build and operate an apartment that is affordable with low incomes because the rent that they can pay doesnt cover the cost to operate and maintain those cost. For this market failure, Government Intervention<\/a> in the form of subsidies necessary to make this apartment s affordable to people with extremely lowincome. Thank you. Lealth gap continues to grow im also concerned about the reality of modernday red lighting, the chrmy wb are titled lack of expedia people are more likely to be denied Mortgage Loans<\/a> in record. This report found that in boston when white applicants apply for mortgages the denial rate was 5 for black and latin at applicants the denial rate was 15. 3 and 12. 7 respectfully this is modernday redlining. How does len didnt housing this Commission Impact<\/a> the ho of color in what reforms do you recommend to curtail the unfair practices to prevent discrimination in lending is against the law but it absolutely practice and i would share statistics at National Fair<\/a> Housing Alliance<\/a> that have shown fair housing complaints in 2022 have been at the highest record ever and ially around source of income and discrimination and discrimination for people of pronounced so the problem is pronounced. The gentleladyrom forestry is. , i would think the witness is here today, this may be one of the best panels that weve ever had on the subject usually we hear send more money and you brought really good\u25a0c suggestio, i do wish weave included the National Association<\/a> of realtors they have quite an impact in next time we will includeut youre really good and i appreciate your suggestions there very enlightening. Thats to hear was some of the local and State Government<\/a>s are starting to actually do to take action to be part of the solution to problem. I wonder if congress could do one thing, one to address the homeless problem what would the one thing be and i could ask each of you the answer and will mr. Appleton. I think if i could do one thing from a financing perspective, itfr would ensure there is a clear c and inconsistent Housing Finance<\/a>, on the supply side make sure that we do all tha encourage the construction entrylevel housing i think thats where we have been missing. Thank you. I think there is an opportunity for the federal government to take a more activs role in encouraging state or local zoning reform that we have not seen proposals that are quite designed such a program should be designed as a race to the top program that rewards Housing Market<\/a> outcome rather than reform on paper that may lead to more housing being built at lower prices. Thank you. Will take a slightly is important and i think the politicians and members of congress have an important job in giving a perspectiven ter\u25a0 td we have roughly. 1 of our population of homeless i dont really consider that to be housing crisis. Youre talking about hal\u25a0f a Million People<\/a> in n 333 million. That perspective is very important. Thank you. W i would say if we could pass the yes in myy backyard because stated supply is a major issue in terms of Housing Affordability<\/a>. I think most of the panel has recognized that and we need 4. 3 million new multipage intrafamily units by 2035 so lowering the barriers for housing development. That would be helpful. Sness requires that we make Homes Affordable<\/a> to people with extremely low incomes so that requires subsidies in theormf rental k assistance expanded vouchers in terms of preserving their Public Housing<\/a> and other Affordable Housing<\/a>utions were the lowest income people and created an access to the Affordable Housing<\/a> with wraparound Supportive Services<\/a> hshown again research and evidence to be highly effective at ending homelessness, many communities in your district and your state that of effectively ending better is homelessness using the Housing First<\/a> approach. Very good, i think i will yell back. Take you, the chair now recognizes the Ranking Member<\/a> ms. Watersem for five thank you very much mr. Chairman and members we sit here calmly talking about i dist a crisis but call 75000 people on theater los angs rea crisis, 600,000 people in ts country on the ground every night is a crisis. I dont how you defy one that we cannot have this. At Affordable Housing<\/a> and not re to say and last congress and my leadership Many Democrats<\/a> secured rule investments in housing to the ph helped house people experiencing homelessness and kept over\u25a03 11 million struggling renters ugand homeowners house. We have proven time and time again that when we invest in federal dollars into affordable homelessness and evictions and we can save taxpayer dollars spent over the long one. Ng stability during the pandemic and the fact of the matter is when housing costs are too damnt of their homes, indeed, the Government Accountability<\/a> office foundhat withve other increased in median rent that is 9 increase in homelessness, msn what the Research Tells Us<\/a> about the leading cause of homelessness and what are some of the examples of costeffective solutions and whether or not you agree with me that is a housing crisis. Is absolutely housing crisis, thank you for question. Housing cost of the primary driver of t homelessness, the oe thing that all people experience in homelessness have in common is lack of access to a safe, stable assessable affordable home in the research and the data in the best practices showt way to address homelessness and end homelessness is to provide access too affordable with supportive wraparound services. There are many communities in l. A. That use the housing for ragy homelessness and in the city of l. A. , every day they are able to house 207 people wreeriencing homelessness get them into permanent housing. On the same day in l. A. About 225 p homeless. We are able to address individual homelessness with communities are able to stand the tide of new people becoming homeless because housing cost are so high. The primary challenge is Housing Affordability<\/a>. And bills like yours the housing crisis in the ending homelessness act would end hole United States<\/a> to a level of resources and the Solutions Needed<\/a> in homelessness. \u25a0t m understand that someone said that the federal government is spending en and theyve not been able to solve the housing crisis, can you explain it, do youe have tie whether it is inflation\u25a0 whether a loss of a job or whether its covid, what have you, no matter what money you have spent you may have tause t. Is all of those things combined in the housing crisis impacts across the board there is a severe shortage of Homes Affordable<\/a> and available to the loncome people across the country there is a shortage of 7. 3 million Homes Affordable<\/a> and available to the lowest income < people, in other words the same number is for ten of the lowest income households there are fewer than four apartments that are affordable and available hos are living double or triple incomehey are paying 60, to keep a roof over the head and when you spend so much of yourd limited income\u25a0 on your housing you are always one financial shock whether its a broken down car, sick child whether t work or the pandemic away from the scene rent and facing eviction in the worst case. Are we talking about this is a problem that could occur with anymerican family this is not just about suburban or rural it is everybody. A srtage of housing for the lowest income people is pervasive and it exist in rural, urban i like. Thank you very much i go back. Take you the Ranking Member<\/a> and the gentleman fromn National Security<\/a> is not recognized for five minutes. Thank you, ie mr. Chairman. One of the problematic features previous rounds of the requirements of my mind has always been the concept of importing a gateway framework il bureaucrats, outside of the oversight of congress and the americanan public. Proposed by the Federal Reserve<\/a> is even more and diverges not by recognizing our American Financial<\/a> system in particular Housing Market<\/a> but what makes our country unique and goldplated what was developed by bureaucrats in s comment on how the excess of the impact of the Housing Market<\/a> . Thank you for the question you are exactly right it fails to recognize our market and has excessive mortgage risk rates on top of it. Failures is a lack of credit for private mortgage insurance and strength and resilience of our system in contrast to. Limit to access credit from commercial banks depriving them of the options and shifting businesses to loans directly or indirectly backed by the federal governme thank you for answering them. Seems to be no costbenefit analysis. We talk to regulars who oppose this they will a i assume they have not contacted your entity, your association and what kind of cost you anticipate. Quick snow, infected adopted a number of enhancements in the last round of bank capitol regulations were implemented. Those relations recognizedul by this and we have enhanced the industry with robust capitol operational standard. At the sameimdit forde it. Lets totally disconnected from reality. Bad deal there so many bad things anything to start over and we shouldnt go down this road i m but thank you wall street theres an article headlined San Francisco<\/a> developers tackle housing woes. And there it talks about a new 71 story rental tower they want to it makes a comment and says unequipped elsewhere tent office to residential conversion plans been submitted to the city and later on its as the plans for e new project reflects government efforts to reduce cost and eliminate redtape for new construction and conversion of office bui\u25a0ldings to apartments. So we talked a little bit ago about increased cost. His situation here talks to a point we have i think in building housing at a cost that people have rules and regulations on this situation are being changed or waived to enable people to do this. Can u see ts example of a percentage of rules p and regulations you or the cost i should say of a Housing Project<\/a> precooked thank you congressman that is a fantastic question. I only ask fantastic questions left back access to data on the specifics of local land use regulations has to ecos producing solid estimates on the portion of housing cost due to zo and other permitting process barriers. But, one estimate thats about 20 years old finds inn thehe u. About half the cost of housing is due to land use regulations for. 50 oful thet i think each one of you talked about rules and regulation and zoning as a acost you are quantifying it at about half the cost of a home and or apartment is 50 due to rules, regulation zoning requirements . Years ago found for the San Francisco<\/a> bay area. Is a 20yearold figure. That is right f we know its gotten\u25a0e worse can someone give me a figure based what percentage of the average income in this country what percentage of that used fo . What percentage of individuals income for an average individual making whatever it is in this country that issx the average e what would go to housing . Experts would say no more than 30 f incomho go towards housing costs. Im not asking how much im asking the figure does anyone know the figure today . Is more than half a. The average individual is spending more than half of their income for housing is out you said . I we have a rule he rules and regulation cost almost half of what the cost isal there is her problem. There was a promised return to kank you. The gentlewoman from new york is recognized. Thank you, mr. Chairman. Affordable Housing Communities<\/a> across the country he faced a volatile Insurance Market<\/a> for many years now. There is growing concern insurance carriers are working away from affordable and middle Income Housing<\/a> because liability and otherines o coverage i have come out of reach for many Property Owners<\/a>. And you talk about what homeowners can do to a this . And how can we assure Affordable Housing<\/a> properties and a renters are not being unfairly t in the Insurance Market<\/a> . Thank younk congresswoman. Rs Property Owners<\/a> faced 15 and a 17 and coverage year over year. But its also not uncommon to see triple digit increases. N afe communities. This is information provided byu our members but i will speak to you on my personalou terms of the rising insurance cost. We manage a number of properties the majority of our portfolio is in washington d. C. At first the cost of gone up for us from 15, until 32 more port to\u25a0\u25a0 know theres only a few carriers that will actually write policy in washington d. C. Which makes the cost unaffordab. I will give you an example of the National Church<\/a> residences have seen the property insurance and liability increase over four \u25a0o0 . Do you have any advice in terms of what congress can do to address the issue . He congress should use its regulatory and Oversight Authority<\/a> to monitor activity in the Insurance Market<\/a> while looking for ways to drive increasedapacity in the insurance and reInsurance Market<\/a> to bring the cost down for. Thank you. As you affordability crisis requires federal action. Such is the collection of data. Unfortunately there are significant data gaps in puerto rico. Do you know that colony that we have responsibily toward . Where Housing Affordability<\/a> crisis exists for over threepoint to million amerani recently urged to inclue puerto rico in the American Housing<\/a> survey. Which provides critical information of the Nations Housing<\/a> stock. Can you elaborate on how including puerto rico in the survey will p help offset thelee lack of Affordable Housing<\/a> . The American Housing<\/a> survey only national that gives us information at not only on Housing Affordability<\/a> but the stock. Y of our Nations Housing<\/a> the sample size for hhs is small. So we are only able to get specific\u25a0p1< on the 15 largest metro areas. It would be useful if we were able to get information ceaiy ricos Housing Stock<\/a> quality. And having hhs increase its information is important but hud would need Additional Resources<\/a> in order to do that. s no secret that communities of color are often the most impacted. Other climaterelate think thists communities Affordable Housing<\/a> more rental property are proportionately often directed elsewhere. How can we leverage federal resources andith better disasterr on mitigation questi. Low income communities a of e often located in lower lying areas. They also communities that historically haveo not been givn the level ofiv infrastructure odollars needed in order to protect people from the reates a vicious cycle of not only keeping people in harms way, but increase costs t response and rebuilding. Codifying the program would be \u25a0i\u25a0 step in ensuring the people in these communities get the resources that they need. 9 and those precious few federal resources for rebuilding in some cases resilience. Thank you. Ield back too. Thank you the demo from South Carolina<\/a> mr. Normans recognizer five minutes per. Think it would to thank all the panelists werek we talk about affordable, we talk about housing shortage, this isnt that complicated. You have anywhere from 23 28 latory costs thats 98000. Tho bear. With attempted you have bureaucrats trying to tell them how its yours. Mandating carbon emissions. On the few unaffordable attempted to take weight medical debt thats unpai you get government out of the way. Oandat politiciansg; . I recent put a football analogy i had a talk show host who was abin over what he needed to do to improve his team. I thought thats is how politicians are. A lot of times we dont know what we dont know. Get politicians out of the way this is got to be settled on the local level. 4c make it so eviction notices can go out. You have to get paid back. We talk about homelessness, what about the 8 million coming across the border . Where are they going to go . New york city is finding it out what are they going to do with it . Until get government out. Stop this flow of people in this country that have not paid into the system. Get regulars out of thean all into nick sabin is not the best want to tell him what to do. He is in t it. On have their money invested. You mentioned make housing affordable. To find what affordable is, and secondly you call for more assistance. Is the federal government as it set the Gold Standard<\/a> for financial accountability . The household does not pay more than 30 of income towards rent. Whats in Affordable House<\/a> . I dont know what that is because i just dids it depends n what a persons income is. Housing cost but no one should pay more than 30 of the income towards rent or towards their mortgage for. Ow the federal government has the answer for extremely low income households we are talking about households with extreme low i district for example. Ork a Single Person<\/a> who has a disability or is a senior and on extremely limited fixed income. 15 piglets and running out of time. Lex with combined Household Income<\/a> of no more than for these households the private market on its own. You could ask any housing developer whether they are forprofit or\u25a0s nonprofit they will agree they cant on their own make housing affordable. By having subsidies from the saying . Intervention from the federal government too. Wheres the money coming from question. The form of subsidy per. Wher outlets for Housing Assistance<\/a> is about 1 per. Yes but wheres the money coming from . Th subsidies you say the federal government which i think is in the to it the tune of 36 trillion, or is i from . 1 of outlays. Using percentages but not answering my question. You really arent. \u25a0 its coming from the taxpayers. We can absolutely increase taxes high income earners in order to afford to have the people for. At the utopian dream that you are talkingg about. You are a saying further in debt further put this hold on im reclaiming my time i got 10 seconds. Into debt of the economy. More federal government that t hat to do in the real world i yieldld bac. I think the gentleman the judgment from new york mr. Torres is now recognizer five minutes. Even providing everych childn educ dream . Do you believe housing providing every child with housing is utopian dream . No per. You believe like e\u25a0cation, no one can beat recently expected to succeed in america without access to safety . E the Research Shows<\/a> and get it again for. At a personal level i would not be in congress were not for Public Housing<\/a> and the stability and opportunity it gave ae joury from Public Housing<\/a> in the bronx and house of representatives of washington d. C. As a product of the public inv id Affordable Housing<\/a> my republican colleagues would have you believe there is excepted Government Intervention<\/a>. I will concede when it comes to land use their certain exclusionary zoning. Which is been a barrier to address an affordability crisis. When it comes to funding the republican talking point cannot be further from thebl truth. The problem is not too much governnt investedn housing. The problem is too little. There is insufficient housing supply and insufficient housing subsidies. S. What is thehehe demand for Affordable Housing<\/a> and the supply of Affordable Housing<\/a> . The household with the l shortage f 7. 3 million Homes Affordable<\/a> and available to them. Another way of saying that same st income households throughout the h country there e fewer than four apartments that are affordable to them. And if iould just say we talk a lot about the talk of providing housing to be affordable for extremely low ine. We do not talk enough about the cost of in action. F its not like if we are not providing housing for extremely low income paying. We pay as a country to allow for homelessness and housing poverty to persist. Ay for it through a lowered educational attainment. Through health challenges. Forll children and families and increase health cost as a result. For families unable to obtain and retain wellpaying jobs. Study pay we allowed homelessness to continue to persist. We are paying a one way or anhe use of fun is to invest in solutions to keep Homes Affordable<\/a> for the lowest income people for. Its a homelessness and housing insecurity are not only bad morals is bad economics for. Or inchoate we saw essentiall workers many earning minimum wage with their lives at risk during the peak of the so of the whitecollar workforce could safely shelter in place and work from home. Is there a sine county in america were an essential worker earning minimum wage could afford a one bedroom apartment . There are very, very few communities throughout the country that is possible for. Put up in a twobedroom apartment . No community for. Out of 3000 single area in which an essential worker earning minimum wage could afford a twobedroom apartment here. At his right too. You believe its wide wise for comp to standon by idly whie america becomes dangerously unaffordable to the central workforce . No. Housing is a basicaid veryas wee cant succeed in other areas of their life if they dont have a home to go to at the end of the day. Children need a place to study. People need a place to unwind. All of us o t h we need to provide that for our essential workers for everyone its extremely low income. I do have a colleagues who seem intent on substituting freemarket vandalism for evidencebased policy. Is there any evidence at all thn devices unaided by any government subsidy couldnt magically create the Affordable Housing<\/a> we need the levels of\u25a0z . No. In fact the evidence very clearly says the opposite. Coach proposers over Government Intervention<\/a>. As orve more or less question. More request of the section eight . No per. One of the note taxexemptan . All of these are essential ways the federal government provides resources to ensure some income can stay stably housed. But the fundings far under the need. One in every four households ne eligible. We have what is essentially a housing lottery system and our country were the only lucky 20 of help they need. You. The gentleman from wisconsin mr. Fitzgerald is now recognizer five minutes. Correct thank you mr. Chairman through a letter of 60 to my m colleagues and is committed to the banking regulators to raise concerns about endgame proposedr residential mortgages. One of the that the proposal removes is the ability for banks use mortgage insurance to reduce the risk for low down payment mortgages. A departure from existing rules the father whork for the gse. Mr. Appleton you mentioned in your testimony insurance is yea. What the committee might not know is this industry wasn \u25a0 created and has a deep roots in my home state of wisconsin. Whyho is it important for bankpe private mortgage insurance . Thank you for the question congressman fitzgerald and thank you for sending that letter. By failing to regulate privateak regulators to make it more difficult to banks to assert low down payment borrowers, service mortgages refinancwareho of cret mortgage bank. Imaging can shoot sumer choice and access to credit. Current rules as you mentioned written before the industry adopts significant enhancements to capitol operational standard allow for underwritten mortgage to receive the new proposal that totally ignores the reality should example the third quart f the industry already pulled 169 of its required capitol. She appoints its own capitol rules recognize the benefits. Anything a regulator should be recognized in an strength in resorting to the private insurance more not less. Texas is going to the committee before you have a lot of young attended school, put themselves in a position, many of them couples that find themselves in situations unable to raise the actual money on a minimal house which is out of control as a result of the inflation we have been experiencing across the nation resulting in housing. They are just unable to come up with thene money to make that dn payment. The builders\u25a0d\u25a00 a not incentivized to create starter homes it doesnt exist or select two americans out there which my colleagues from new york was still here. He would have everyone. H think there is simply one take on whats going on across the nation. It is happening everywhere right now. Ms. Hamilton you have specificay discussed the need for housing two four units per building which is becoming the norm right now for anyone that is developing anything close to a subdivision anywhere in america. Looking at the amount of housing now about four units per 100 peoples been permitted across the country as a whole. The only option left for you miss apologies who know that once he put the infrastructure in the ground the cost associate within a subdivision is going to be completely out of control. Utt communities that no longer can put a subdivision in place with unit. Which is clearly out of the reach of almost all americans to find themselves trying to get the first mortgage. What is the reason for the drop in these types of housing . Is there any type of federal solution that couel that . Think you congressman. You are absolutely right that permitting rates are way down from what we have relative to times when housing was more broadly affordable. Due both to local zoning rules the rules on the book that limit how much housing can be built and limit the availability of res of housing such as duplexes, triplexs, four or small lot developments. Andde it islso due to local permitting process that relate lengthen the time and add cost to the building of any type of new i do think this needs to be addressed primarily at the state and local level. Although efforthis reform from e more than welcome. Thank you and i yield back too. Thank you the gentleman frome minutes. Ask mr. Chairman, to the Ranking Member<\/a>, 122 days nearly a Year Congress<\/a> we are finally having our first hearing on Housing Affordability<\/a>. Congratulations. Is dont yield . No i will not. Because during the previous chairs lears the Committee Democrats<\/a> held 55 hearings on housing related issues last congress. That means i wouldve had 275 minutes to talk about the issue that is of prime importance to my constituents so i only have five minutes of no i will not yield. We are a affordability crisis that is cripplingbb our country. There have been a shocking 47 increase of National Home<\/a> prices is may of that is driven Many Americans<\/a> even further away from the dream unof homeownership. Far too many households are focused forced to continue to rent they face unique challenges of their own as our limited supply of housing simply\u25a05 canno meet the evergrowing demand. The National Multifamily<\/a> Housing Council<\/a> estimates we need to add nearly 3. 7 million new Apartment Units<\/a> a year to keep up with the demands but thats only to keep up. Even at that pace we will estimt renters face today. 21. 6 million american households that spend over 30 of their simply cannot afford to wait any longer. So this hearing is long overdue. My district in las vegas has been one of theottest real couny since the pandemic. Whether a family is looking to purchase a home or simply rent month to month they are roof. As you can see since 2015 data shows there has been a drastic 75 jump in the typical rent in las vegas over 1800 a month with an average renters householdto income 51000 the rent affordable at that income when we look at the most86. \u25a0f vulnerable and lowest income renters the stats from the national low Income Housing<\/a> alarming with a staggering 90 of the households facing a difficult cost burden. This should come as no surprise when home sales, remains depressed the average household dispense a burden of 29. 6 of their income on mortgage or rent. We can see most of these lowincome households are severely cost burden which means they are spending over half of their income each month just to remain house these families are trapped thank outside portion of their income on rent which limits their ability toor down t and further perpetuate the racial homeownership gap. And yet thus far this subcommittee has been on interested in advancing any meaningful housing policy during the first session of this congss. I call foul. And all the government approach is required to address this crisis and we need to look both at how to the increases in her Housing Stock<\/a> and also hard to ensure the homes we do have are sold to real families, households that will form the backbone of our economy. That is why earlier this year i introduced the housingvershttint the home act to give hide the data necessary to understand the severity of her housingou shorte \u25a0 \u25a0 every day at nevadans from being exploited by outofstate corporate speculators these massive corporations hav been ablo durif high Interest Rates<\/a> which has allowed them to purchase almost one third of the homes sold in certain zip codes one in three and it is unlikely the homes they purchase will ever appear on the Housing Market<\/a> again. So i am deepl corroborated these corporate speculators predominantly target neighborhoods of color and moth. The home act would give hide the tools necessary to investigate these allegations. Not only will hyde the necessarn who the speculators are targeting, but also give hud the tools necessary to ensure that we have an equal level Playing Field<\/a> i know my time is concluding on the American People<\/a> to know we only get five \u25a0 mis had we had 55 year old i would have 295 minutes to make my case. Because House Republicans<\/a> going to talk about this issue, we dont have the w time to advance the policies that matter to the American People<\/a>. I am mad, i am pissed, the American People<\/a> are piston my constituents are pissed if we dont make housing more of a priority for contentment time has expired. [inaudible] the gentleman assignments thoroughly expired the gentleman from new york is recognized for five minutes. There is no sugar coating it for our nation is facing a housing shortage of there is no sugarcoating it for our nation is facing a housing shortage of dability at hi my district on long island is no different for just over a month ago the median home reach a record 600,000 increase of 9 compared to a year ago. The fact the Interest Rate<\/a> for 30 long still well above the,c rate tt homebuyers are you seeing is not surprised many firsttime homebuyers struggles into the market. Additionally for many people saving a down payment of 20 can be a significant bidder to buy home. I cannot do it given these therf marketbased solutions to complete Important Role<\/a> in the long firsttime homebuyers. One of the solutions is private mortgage insurance which i took vantage of when i bought my can you explain how private mortgage insurance x think if your question congressman. Homebuyers by limiting the need thousands of dollars in cash for down payment. Benefits tech buys ill first loss position ahead of the taxpayers who ultimately stem behind them. Incentive investors with pru mal Housing Finance<\/a>. Other government barriers to thats a great question. Establishing a clear consistent coordinated Housing Finance<\/a> policy will ensure the private programs fully back by taxpayers and secondly we should ensure faithful implementation of prevent from engaging in inappropriate pilot programs through causing enterprises to participate in primary marketsa. Appreciate that like i said if it was not for that i would i would not be able to afford the increase weve seen in the past couple ofor years so i thik it forxistence. We have discussed one longstanding option for hobart to take advantage of in order to make homeownership more obtainable there still a number of other regulathe private mark. Reducing the number and scope of some of these regulations could you lets lower costs of homeownership in the United States<\/a>. However, given how highly regarded the half housing Mortgage Market<\/a>s or want to focus on the flip side of the issuct fha take to pave the way for private market innovation and consumers we seek to reduce the cost of homebuyingership not just a thought, but people all over the country whether we are talking about the construction space of the mortgage insurance based you abagree additional competition d more choices would benefit . Yes they would youre not gonna have that if you keep crowding out not oy you but the government keeps crowding out the private sector. Reducing conforming loan limits is one way. The original chart have excessive use provision was never meant to replace the entire market is meant to supplement the market has not ever done that it has alwayss inease dominated. That provision has never been defined and it has never been in enforced those to be two ways right off the top. U i was in private practice i did a lot of closings and conventional home market the Mortgage Market<\/a> fha i saw the problems certain issues to get fha loan costs a lot to a consumer. P and Home Mortgage<\/a> really do wp them get the best deal not just buy a home but keep it. I want to make a quick statement in support of that linking house tax credit i like to raise one other solution thats outside this jurisdiction but help address the nations the natione Affordable Housing<\/a> tax credit. Since president reagan housing credit successful publicprivate partnershiaffordablepu homes fo, disabled veterans and working people the problem is and nowhere is this more than long supply. Thats why we need to expend the credit by an acting hr3 238 the Affordable Housing<\/a> credit improvement act of bipartisansi. And i would like to yield to the chairman of my remaining time. I think the judgment ill willpoint out tt keep pace wite 13 i will note 13 did not fix the housing crisis. The gentlewoman fromk color mi. Thank you, mr. Chairman. Thank you all for your time and expertise. I real\u25a0]lyciate being here and having the opportunity to hear from all of you bribe for irepresent colorados sevenh congressional district. I am very lucky to have been but we have seen in the time that i have lived here its actually my birthday so 42 years of living in cor it is we have seen exponential increase in the value of homes. And why even think back to when i bought my first house, housing has tripled in just a short amount of its really the perfect storm and i know we have talked at length about this today. We think about the housing crisis in 2008 that took out many Home Builders<\/a> and we still have not recovered from that. Ad with the investments to keep our economy afloat during the pandemic. Which also unfortunately our supply chain was decimated as well as with the increase of our economy booming, with the Workforce Shortage<\/a> across industries has significantly impacted the Housing Market<\/a>. One of the very easy ways we could help address the issue is coming together legal pathways for people to work here Construction Industry<\/a> constantly. This is something that really hits home for me. Far too often people in congress have not had the personal experiences so many people are struggling with. And i grew up in a home my dad lost his house and faced homelessness. My mom was my very lucky peoplet which saved her life. I have seen family members who are forced to live on the street because there is lack of to housing and Substance Abuse<\/a> disorder treatment. We dont pay the upfront cost of investing in this, i comes on the back and tenfold tort local government, the state and so want to thank you for highlighting that. And i want to bring it back to specific policy ideas since we have limed time. Thank you for calling that out as an important first step forwd on actually having our local and State Government<\/a> look at their restrictive land use policies. But what in addition to the doing . We talk about restricting their ability to have these pulses at the local level try to bring to move in the right direction what specific policies for all of you, what can we do at the federal level beyond support when these local investments . Akt response to that. Happy birthday by the way. So, we support the act its an important le enacted. We also think we can go further on requirement local communities to do more. To remove restrictive local zoning and we can do that by tying those requirements or incentives to federal we shouldf the housing dollars to big infrastructure dollars the kind ofree exclusive communities want to receive and would be more willing to make changes to do those. But also we need to expand his s affordable to extremely Homeless People<\/a> do that through rental assistance to make it universally available to all\u25a0q households of need. We shoulder preserve build more housing for extremely low income people like the naational housig trust fund. We should continue highly effective programs like emergency rental assistance to prevent evictions, prent forward robust and then enforced protections to keep people stably house projects think of no we do not have a lot of time to get into this, mr. Appleton i wanted to ask you about what you all are doing to make sure people know advertising access to loans without a 20 down payment thats really restrictive of people actually saving to make that investment there once a far out of reach of being able to qualify for. Thank you for that. Take the average household early the national Median Income<\/a> 35 years to save for a down payment the ash we are active in local r education resources, spreading the word you do not need 20 to be a homeowner right now. Thank you a yield that protects the judgment from new york is recognized for five minutes for. K mr. Chairman. Apparently my colleagues see think the number of hearings we hold translates to actual legislation passing. Roughly 55 hearings on housing and Housing Affordability<\/a>. And yet zero bills were enacted intoto law under build back better, the ira that the former chair of this committee wasmm pushing for. These bills were so bad even the Biden Administration<\/a> rejected them. And yet now we are deali w yearn mortgage Interest Rates<\/a>. New york city has 50000 vacant because of the draconian rent control laws and the laws passed by the state slature. They require these units to be brought up to code, taxes go up, energy costs go up, and yet they are arbitrarily capped it with they can charge and rent. Soso what happens . They choose to leave it vacant street takeake the tax write off instead. Bang up job, good policies these are really working out well. We have 6 Million Units<\/a> under built. How do you meet these supply need whenhe cost of l is through the roof. The cost of businesses through the roof. The cost of goods, the cost of construction and the cost of energy. All driven by horrifically baduc policies when it democrats had complete control of washington. Complete control in new yorkom city. And yet they are shocked, shocked we have a housing crisis and that we have anrdability cr. Maybe we should consider changing our policies . Should lo reduce the cost of living, reduce the cost of construction. Reduce the cost of doing business. \u25a0 on maybe actually increase Domestic Production<\/a> of energy. That mightat help. No, why would we think about this logically . Oh, wank to, hear my colleagues complained about the number of hearings, my god. Stop worrying about the number of hearings and worry about the laws were passing thats a better idea. Persistent challenge. With Mortgage Rates<\/a> that multi decade high limited supply and continued supply chain aues for is the most difficult time to purchase a home. The market is further complicated by the extraordinary circumstances of many homeowners unable to sell their homes for fear of losing their low fixed rate mortgages obtained prior to rates. These, among other factors have forced many potential homebuyers into the rental market. Driving up rental dd it. And westchester counties in my district, according to the National Association<\/a> of realtors the monthly costf mortgage is 1000 more today than it was lastan year. And m putnam and dutchess countys it is at least 800 more per month. In both instances, these are additional housing cost of almost 10,000 dollars or more year. For many families it is totally unsustainable. This topic is critical which is why last month they discussion in my district on the housing issues that have significantly affected the local area in which stakeholders, eled officials, government agencies, nonprofit organizations and key figures not real sit industry including devel realtors. While there are some existing efforts that should be improved and expandedef upon such as the we need to be working to remove the governmental barriers that track approvals out for years, drive up costs and dis incentivize the investment and participation our constituents need. It has been mentioned a number regulation of the cost of housing and the disincentive is asian of building and the flawed attempts of government to intervene on this this has been the forefront of new york in the last few years. Weve seen a blend of heavy regulation with hand fisted attempts b regulation with unrealistic arbitrary mandates to build housing in areas that dont have the requisite situation to do so. Including a lack of infrastructure. We have to look at thised holistically and we need to these policies are not working. With that i yield back progress progressive think the gentleman in the gentleman from michigans records for five minutes for. Thank you so much for being there when you arty know the average renter now pays over 30 of their income on rent. I know and Detroit Metro<\/a> area, in my communities there are three extremely low income renter households for each unit that i affordable. So the crisis is real that thats something we can all agree on. But what i find is theis asserts motivating todays hearing it strikes me on to your criticism of quote outsize government esence distortingousing market by supporting low income families when the billions of dollars in benefits provided byn to wealthy households go unquestioned completely. Moreover, before govnment intervention many of the foundational elements of her Housing Finance<\/a> and secondary Mortgage Market<\/a> simply did not exist. When did the longterm fixed mortgage option become widespread . It was under the new deal that we started to have longerterm Mortgage Rates<\/a> of 1y for. Thats right the new deal era reforms are typical mortgage at variable rates and came due yeam mortgages were virtually nonexistent. This is one of many examples demonstrate the of what the private market solution. Even if we eliminate all regulatory barriers today holding back her housing but market rate housing be available for families . No it would not be affordable for extremely lowincome households for. You state in your testimony are federal subsidies are necessary to fill the gap between the lowest income people can afford to pay the cost of developing an operational why . Because a private operator pr cannot build and operatebu housg on their own without subsidies and make those Homes Affordable<\/a> for the lowest income people. Weve heardd today several republicans talk about the importance of the low Income Housing<\/a> Tax Credit Program<\/a> which is an Important Program<\/a> that can be further improved for lower income people but i believe thats helpful recognition that federal subsidies and intervention is necessary. I believe Government Intervention<\/a>s are not without any shortcomings i agree on that historically housing policy in particular have been undermined and bias towards working families. Some federal policies like the fair cost of memory for instance t build more Affordable Housing<\/a>, we know this but when congress provides Housing Assistance<\/a> to one out of four eligible households with was 70 billion capitol backlog we must be honest with ourselves about where the problem lies. Another example of the limits of providing small dollar mortgages could we talk to the secretary of hud about this. For banks the fixed cost of the same to originate a small loan versus a big loan. This makes small loans less profitable. What are policy levers available for federal government to increase support for small dollar mortgages . In my community over 30 in some committees are small than 100,000 they are not getting access. That is a question i would be glad to get back to with further other federal subsidies right now that can be provided forrm loan origination and servicing question for. That is outside my area of expertise. Americans right now families are struggling right now. Access is small dollar mortgages its the fact that some as in them at a really because the barriers. But what i dont like is the fact we think the private markets going to fix its own ive seen it again in my own coun we see over and over againn banks and other institutions have policies in place that are geared toward one community over the other a seat work michigan lost more black homeownership than any other state in theck country. And i really believe its because Fair Housing Act<\/a> like it should be. This is where we come in as a committee to talk about those real obstacles. Wrong at saint sayinghey weve got to do bette. You should literally talk about where you function is over0 mas than 100,000 the hope is worth or being put up for sale then why arent we saying to our bank we will help. Lets get the loads out lets get homeownership increase thank you so much i yield to quickset think the gentlewoman the gentman fm nebraska at mr. Flood is recognized for five minutes for. Thank you, mr. Chairman and happy birthday to a colleague. Housing affordability has become nebraska. I am pleased were focusing on the problems at hand in this committee. Wewe talk about housi really fod on what is driving the cost in my home state unlike my colleague from new york, lack of supply of housing in the marketplace. We can subsidize all the house and we want the federal level but regardless of how much money the federal government spends of Housing Stock<\/a> does not the problem persists. If you want to make housing more affordable you increase supply. If you want to make it more expensive put money into vouchers and before jumping into the conversation about zoning restriction known to briefly mention manufactured housing. Manufactured housing as a potential to be at affordable alternative that lowers the cost of housing overall for singlefamily units and i am pleased to see manufactured housing as part of the discussion today and there is some hope with legislation attached to the hearing on that topic. That back to zoning on the proud rebldto act with congressman kilner. This bill would require Community Development<\/a> block grant recipients tol reportsseo zoning restrictions. Once we have comprehensive incomparable metrics for zoningt jurisdictions, it will be easier to identify the full impact these policies will have on housing costs. Our witnesses come from all different uniqueectives and i enjoy hearing from some of them on this important bill. Mr. Royster could you please explain how zoning restrictions canhe housing . Thank you congressman. I will give you barriers were lowered an increase in rental housing. Several states and localities ro spur housing development. California has passed to allowoe housing on their property. Legislators and montana passed a series of bills that would allow backyard accessory dwelling units. And allowing apartments and commercial areas. And on the oer vermont bundled zoning reform into a single sleeping bill which will take effect next year dropping lot sizes and legalizing duplexes, for plexus andg limiting parking. These are just a few states you have begun to recognize the important nexus between the discriminatory land use practices and the under supply of housing. As these and other landuse effect you will see an increase in housing supply. Thank you and i appreciate that. Can you explain the national low Income Housing<\/a> Coalition Support<\/a> for it yes in my backyard act . Yes, thank you we do support the bill. It is an impornt way for communities to have more resources and increase incentives to address localhe pt needs to be solved so we are supportive of the act for. Doctor hamilton m you includd localities that cut landuse regulation in your testimony. Can you walk through some as examples for us what were the resultingects . What we see in places that reduce barriers to Housing Construction<\/a> more housing a more reasonable prices accessible to more households. Thank you for your attention on as a one piece of getting the rules right to facilitate accessible housing housing. Nebraska is one of the few states to require the localities to manufactured housing to be anywhere a site built house would be allowed. Congress could go further by removing the steel chassis requirement on manufactured housing to make this type of housing morxible and able to serve a wider variety of households for. Thank you very much. You meding restrictions in your testimony would you care to add to your perspective on government restrictions decrease housing supply . Youve only got 30 seconds im sorry. I am agreement with ms. Hamilton or doctor hamilton and i do not necessarily think it is a problem. But they are real and they matter. Our Witnesses Today<\/a> to the chairmans credit represent a wide range of players in the housing space but let the record show we have extensive support on that yes in my backyard act for witnessese all your testimoy and time with that i yield backwards i think the gentle of the judge awoke from georgia msd for five minutes for. Thank you chairman\u25a0i davidson and thank you tolliver witnesses for joining us today for this very importantnt conversation. While i represent kong grg my home of atlanta it is no secret my district has one of the largest racial wealth gaps in the country. Affordable housing lays the foundation for Financial Stability<\/a> economical build it wealth but without it the wealth gap will continue to over 2000 at lambtons are experiencing hdable housing. Nearly half of atlantas renters cost burden despite these challenges atlanta short 100 and 30,000 Affordable Housing<\/a> units. 130,000. In the sum that we do have have last year all the residents look for scope and affordable housig complex were forced to relocate because of excessive mold, broken buildings and other issues that made the complex unlivable. This is unacceptable you all. Affordable sinus senmentnd cinnr portal quality or unsanitary. Affordable means expensive and reasonably priced to meet oples budget. To bld their lives and have the opportunity to build wealth my constituency Affordable Housing<\/a> thats safe and comfortable and yes even desirable. What can we expect to happen if Congress Continues<\/a> to kick the can downheoad on this housing crisis . If republicans are successful in slashing the federal housing budget and if thereu is ctinued fingerpointing at state and local government to do the work alone . The housing crisis will worsen an already by nearly all hortage of housing for the lowest income people in the lack of affordability is scope is very important. It points to the fact we not only need to be providing new fo have housing that is affordable to them, but we have to focus o. And in the Public Housing<\/a> capitol needs are beyond\u25a0\u00f7 70 billion. Make it safe and sanitary inhabitable and preserve it for the future generations and because we so woefully underfunded public assistance and other Affordable Housing<\/a>rd we are losing 10 15000 units a year of Public Housing<\/a>. Housing to obsolescence or decay. By not further vesting in infrastructure we are worsening the shortage of homes with the lowest income people. Thank you, im \u25a0h 0\u25a0ll as on brought up inventory. Because the inventory plays a crucial role in Housing Affordability<\/a> when complexes like ait forces families to find more expensive places to live and putting more strain on our limited supply of Affordable Housing<\/a>. Dwindling inventories of Affordable Housing<\/a> werent enough, too many families in my district and across the country are etition from massive investment firms when they think they are ready to make to buying the home they are cut off at the ankles by investment bonds. Families are being outbid by Investment Companies<\/a> buying up singlefamily homes that Institutional Investors<\/a> owned properties according to urban institute. Yesterday i coled the introduction of congressman smith in American Homes<\/a> act to put an end to this so families that have ability to purchase a home are able to do so. Over a tenyear period this important legislation would reduce legislation owned by hedge funds putting power to purchase the hands of family so they can build equity and closing racial wage gap. How has it impacted low and middle and income families to home. In many ways that you raised, i would add that it also creates challenges for the people who rent those sglefamily homes that are owned by Institutional Investors<\/a> and in general Institutional Investors<\/a> are among the worst actors\u25a0n in Housing Field<\/a> when it comes to landlordtenant relations and the data shows unfortunately, i am out of time. H i will have questions to submit to the record. The gentle lady from texas is welcome for 5 minutes. Thank you, mr. Chairman for holding the hearing today. I think thank our people in south texas, americans understand the very real impact ofal rising housing costs. More and more americans see housing expenses rise as singlemost expensivethly cost. Inflationary pressures have pushed Interest Rates<\/a>p premiums unaffordable to some wouldbe buyers. Since the pandemic, washingn man worse by pumping trillions of dollars of d democrat sponsored spending into theng economy. Mr know, theres several factors in the Mortgage Market<\/a> simultaneously hindering an increase in thets housing supply. We now also see the potential for the bazzle3 proposal to increase capital requireme singlefamily mortgages. My question is this, can you elaborate on the negative impact \u25a0 at this would have on mortgage affordability and mortgage availability . Thank you for your question, congresswoman. The rules should recognize the loss absorbing benefits of private mortgage insurance in determining the evaluation risk but it doesnt. Restoring recognition would restore renovation and level the to ensure consumers have access to broad array of Financing Options<\/a> across Bank Portfolio<\/a> products, gscs and government executions. Absolutely. Ly have you repeat this. The bazzle 3 would have Significant Impact<\/a> on minorities . And by bazzles lack of recognition its going to make it uneconomica engage in that type of lending. We have the colleagues that bazle is going to help minorities, what im hearing from you is that its actually going to hinder minorities in their dream of having their home, is that correct . Yeah, theres largely been te aisle that bazle is negative including low andn agreement thatmosi affordability is at historic lows is now right time for regulators to further restrict access to capital . Absolutely not. And mr. Mitchell, along those same lines of Government Intervention<\/a> impacting the housing we also saw that President Biden<\/a> and congressional, my colleagues on the other side pumped trillions of the dollars into the economy in to Inflationary Pressure<\/a> and continues to impact and the reason why we are here right given this high Interest Rate<\/a> environment would you say that, im going to ask, what market base recommendations do you have to bring down the cost of housing . \u25a0t wl, again, i think its largely a crowding out sort of problem. I have several recommendations alluded to in the testimony that would start that path. Thats one way. Yo it back. Insurance to match va insurance that would be another. Thank the gentle lady, the gentleman from california, mr. Vargas. Thank you very much, mr. Chairman. I would like thank you for the courtesy to sit on the committee. Thank you and i would like to associate with myself with what our Ranking Member<\/a> said, mr. Henry, very honorable person. I appreciate the opportunity the. Cost remain key driver of inflation in the country. Since 2020 home prices have skyrocketed. All of our constituents are feeling this. I have to say that we all have our personal stories situation with myself, with my mom and dad worked themselves to the bone to make sure that they had a house and that little house financed 9 undergraduate degrees, numerous advanced degrees, scores of law books, engineering books, finance books, social Services Books<\/a> and ultimately really was the ability to take money out of that house and generosity of my parents that o and sisters and i got a decent education. I went to harvard, its okay. They worked hard for that. Ii was intrigued with the provocative statements that you were saying thatoved policy should not encourage ownership. Woulmtyou comment . I saw you go on the microphone . Consumer finances have found that the average home\u25a0\u00f7 owner is average net worth of a renter. I think we need to make sure that we have consistent, coordinated and housing policy to make sure private capital is not crowded out of the market unnecessarily by government byprograms. Home ownership when done is echanism for wealth. And i dont agree with everything that you say but i agree with a lot of what you said. I do think the government should be involved for those who cant afford. The down payment is what kills a lot of people. They cant afford it. Im not against private mortgage insurance. E. Sed it. When i bought my first home, manufacturing housing. Im not in favor of that. I do this the federal government that has to be involved because theres people that make very low people. For a lot of people they wont be able to own a home because t much money. Thats where theed goving all the people on the streets whether its. 001 ,vferf People Living<\/a> on the street, living in a way thats disgraceful is awful. I travel significantly around the world and you dont see thi it really is awful and we have to do something about it but i do think that the restrictive laws that we have on zoning are problematic but i understd a change the character of their neighborhood. We have towa encourage Home Ownership<\/a> but also in a way that the neighborhood will accept and that means that you have to tell people, you know, stacks homes is okay. Making the lots smaller its ngs are important an subsidizing for those who need subsidies weid should do that. Who could disagree . With that. I rented all my adult life. I still do. I will reclaim my time. I think thats a bad idea. In 1976i bought my first home and in 1993 and i paid 176,000. I just put it in u. S. Inflation calculator and that home if it1 followed inflation today would be 373,000. A home just down the street from mine exactly the same. Historical but same size for 1. 85 million. 5 \u25a0 so i would say that was a very affordable home at that point. Not affordable home but it is a house that certainly benefited myself and my family as the hous mou know, didnt increase significantly like this one did. Thats why i think to argue American Dream<\/a> is protive to th provocative is to say the its the American Dream<\/a> to come home to a house that you own. Thats the w . Ay weve been doing it. My time is up. I thank you for the courtesy. The gentleman from tennessee ogis up for five minutes. Knocking down government barriers that areta the weigh of helping to supply more Affordable Housing<\/a>. One such government barrier and ms. Hamilton made reference to this. That manufacturing housing perm. Allows housing to be transported. This is helpful if a manufactured home will be moved multiple times during its lifetime, however, as i think most people are aware, many manufactured homes are now built permanently placed in one location and thus not do not need to be built with a permanent chasse. Elating thet pernt requirement from manufactured housing from the federal government construction code administered by hud will help potentially save thousands of dollars on new manufactured homes made without apermanent chasse. Im proud toroduced a bipartisan bill, expansion of obtainable Home Ownership<\/a> through manufactured housing act of 2023 along wit my colleague congressman correa of california. I thank the subcommittee for he. Ms. Hamilton and i know that you have spoken to some extent. The latest figures show america short 3. 9 million homes. The shortage is especially severe among starter homes for firsttime home buyers meanwhile the hud code on manufactured homes could be built for 20 to 50 less than equivalent site built home. Can you expand on how the current statutorily requirement for every hud code prevents broader building lchoice. Thats in large part to focus of affordability over other types o pol priorities and the permanent chasse requirement as you said is for manufacturing housing that will be moved from site to site when thats often not the case particularly in Rural Communities<\/a> where housingy important source of relatively low cost housing. Elimating the requirement could also open up new opportunities for manufactured housing to serve as accessory dwelling units. We are seeing many states and localities pursuing reform as a relatively low cost way toprovid eliminating that requirement means that different types of and different size of units cane creating a policy that can work hand in hand with state and local accessory ut reform. Thank you, i appreciate that as i see time winding down. Ire think anyone who has ever hd the opportunity to tour or\u25a0 beee manufacturing facilities where manufactured housing is produced will understand what im what im trying to get at here and at is we all know the shortage today of skilled tradesman in our country necessary for building a home. My wife and i are renovating a home on our farm that we hope to move into, supposed to be ready in august, apparently forgot to tell the builder which yea we wanted be in august. But theres the shortage of trade and so im wondering if you might just expand in the seconds we have left here on how the adoption of manufacturing in dula hom problem inn modern america . Manufactured housing allows a unit of housing to be built in a different location than where it will be sited. Opening up opportunities for housing in california, for example, to be built in a lowercost place is a very positive outcome. I would like to thank the witnesse foday. Greatly appreciate it. Without objection all member wills have 5 legislative days to submit questions to witnesses to theub chair which would be\u25a01 forwarded to the witnesses for their response. I ask our witnesses to please respond as promptly as youre able and this hearing is now adjourned. [inaudible conversations] [inaudible conversations] if you ever miss any of cspans coverage, you can find it any time online at cspan. Org. Videos of key hearings, debates and other events feature markers that guide you interesting worth any highlights. This timeline makes it easy to get an idea of what was debated and decided in washington. Scroll through and spend a few minutes on cspans points of interest. Cspan, unfiltered view of government. Including spark light. The greatest town on earth is the place you call home at spark light its our hom right now we are all facing our greatest challenge, thats why sparklight is working around the clock to keep you connected. We are doing our part so its a li do yours. Sparklight supports cspan as Public Service<\/a> along with the Television Providers<\/a> giving you a frontrow seat to democracy. Ryan beingly is campaigning fo nomination he joined a protest in des moines at the capital to oppose use of Eminent Domain<\/a> to seize land for carbon pipelines in the Hawkeye State<\/a> and he talks why he believes hes the right person to be president of the United States<\/a>. 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