Today, the House Financial Services Subcommittee on Housing and Insurance, led by Chairman Warren Davidson (OH-08), is holding a hearing entitled “Housing Solutions: Cutting Through Government Red Tape.”
Chairman Davidson's opening remarks highlighted the challenges faced in making housing more affordable due to extensive bureaucratic regulations at federal, state, and local levels. He emphasized that these rules often add costs and cause construction delays without significantly improving housing quality.
Davidson cited a New York Times story from January about San Francisco's attempt to build a $1.7 million public toilet as an example of excessive bureaucracy. "Fifteen months after city officials were ready to throw a party…to celebrate funding for a tiny bathroom with a toilet and sink, nothing but mulch remains in its place," he quoted. He pointed out that the project was delayed due to complex permitting processes and noted that Governor Gavin Newsom eventually retracted the funds amid public criticism.
He further illustrated the inefficiencies by mentioning that it takes an average of 523 days in San Francisco for developers to get initial approval for housing projects and another 605 days to obtain building permits.
Davidson also criticized federal regulations that complicate housing development, such as HUD and USDA’s IECC energy code rule and proposed federal rent control standards. He argued these measures increase costs rather than making housing more affordable.
Lastly, he expressed concern over federal housing programs being directed towards activities like voter registration instead of focusing on their primary mission of providing affordable housing. "Zero dollars are appropriated for this purpose!" he remarked.
Davidson concluded his remarks by urging for efficiency-focused reforms over additional bureaucracy. "We need more housing, not rent control and bureaucracy which caps investment and limits supply."
###