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Cmte Financial Services (R)
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Davidson Delivers Remarks at Hearing on Cutting Through Government Red Tape in Housing
Washington, Jul 24 -
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.” Watch Chairman Davidson’s opening remarks here. Read Chairman Davidson’s opening remarks as prepared for delivery: “Today’s hearing is entitled ‘Housing Solutions: Cutting Through Government Red Tape,’ which, as the name implies, is all about what we can do to make it easier to bring new housing units online and available for Americans. “This is a goal that I am sure all our witnesses and colleagues here today share. “As we have heard repeatedly throughout the dozen plus hearings this Subcommittee has held this Congress, the cost of housing is increasingly out of reach for far too many Americans. “Today we will explore one of the biggest drivers of unaffordability—layer upon layer of federal, state, and local bureaucratic rules that do little to improve the quality of housing stock, while also adding new costs and construction delays. “Let me give you just one example of what our housing providers are up against. “Many of the challenges are local. Some local problems are so bad, they grab national headlines. For the record, story in the New York Times back in January: ‘San Francisco Tried to Build a $1.7 Million Toilet. It’s Still Not Done.’ “As the story states, ‘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. The toilet project broke down the minute taxpayers realized the city was planning an event to celebrate $1.7 million in state funds that local politicians had secured for the lone 150-square-foot structure.’ “$1.7 million dollars for a single bathroom. That’s about 8 times the median price of an entire home back in Ohio's 8th congressional district. A home with multiple bathrooms I might add. “And why was it going to cost so much? As the Times states: ‘Even more confounding was the explanation that the tiny bathroom would take two to three years to install because of the city’s labyrinthine permitting and building process…Gov. Gavin Newsom [later] took back the funds…[as] residents dubbed the saga ‘Toiletgate.” “The story goes on to state that it takes an average of 523 days in San Francisco for a developer to get the initial go-ahead to construct housing, and another 605 days to get building permits. “You can’t make this stuff up. “And Toiletgate is just one example of government red tape run amok. “Some of the problems are federal. Take this chart behind me. When a developer stays focused on the private sector, this is the process. “But when trying to provide Housing Choice Vouchers, look how complicated things become. And they’re not supposed to change the price. In fact, the whole point of the federal housing program is supposed to be to make houses more affordable. “Instead of working to make things more efficient, federal bureaucrats are working to add more cost and complexity, and more uncertainty. For example, HUD and USDA’s IECC energy code rule or latest boondoggle to create a federal rent control standard for apartment buildings. All factors that increase costs. “Lastly, federal bureaucrats want to focus on everything but the mission. Things aren’t going well in federal housing programs, but they are now being directed by the Biden Administration to engage in voter registration and setting up ballot drop boxes at HUD properties. Zero dollars are appropriated for this purpose! “To accomplish the mission, focus on the mission. Take note of lessons learned. We need more housing, not rent control and bureaucracy which caps investment and limits supply. “With that, I look forward to hearing from our witnesses and yield back the balance of my time.” ###