Current Policy Issues At any given time federal regulations are working on dozens of rules that can have significant impacts on the viability and costs of housing projects around the country. This section looks at just four of those issues—housing finance, resiliency, regulatory reform and tax policy - with an overview of the challenge and proposed solutions that could benefit small businesses and consumers alike. Excessive Regulations Congress must reassert meaningful oversight authority over, and ultimately fix, our broken regulatory rulemaking system. Any overhaul must acknowledge the disproportionate compliance burden small businesses face. On average, almost 25% of the cost of a new singlefamily home is due to government regulation - close to $50k Reasonable regulations are essential to protecting health and safety. However, many regulations are imposed by unelected bureaucrats who establish laws far beyond Congress’ original intent. Federal support is particularly important in continuing the availability of the affordable 30-year, fixed rate mortgage that has helped millions of American families to build wealth and financial security through homeownership. Housing Finance Congress needs to move legislation to establish a new secondary market system for conventional mortgages with a limited, well-defined federal government backstop for catastrophic circumstances. Almost 10 years after the Great Recession, the nation’s housing market remains far below its potential. The unsettled housing finance system contributes greatly to the problem. The key to an effective secondary system for conventional mortgages is a limited federal backstop for catastrophic circumstances. Leaving government-supported mortgage loans as the only option for qualified buyers. Federal support is particularly important in continuing the availability of the affordable 30-year, fixed rate mortgage that has helped millions of American families to build wealth and financial security through homeownership. Tax Policy Congress must ensure that mortgage interest deduction remains a meaningful homeownership incentive for middle-class households, and also that the production of affordable rental housing continues under the Low Income Housing Tax Credit. While the new law maintains the mortgage interest deduction, it reduces the number of households that will claim the deduction. This will affect home prices, potentially harming millions of American families. Also important are tax credit programs that encourage production of housing for low and moderate income households. Federal Resiliency Requirements Measures to ensure resilience in communities infrastructure and buildings must be practical, cost effective and based on sound science. Such efforts should be coordinated between various levels of government, communities and businesses to prevent conflicting or duplicative requirements. An unusual number of significant Natural disasters in recent years and concerns over climate change have prompted consideration of resilience at every level of government. Resilience plans, policies and programs will significantly affect how and where new homes and communities are built and greatly influence how cities and existing structures are re-engineered, rebuilt and/or remodeled. Retrofitting and improving the existing housing stock and commercial inventory should be a priority. Newer homes and businesses constructed to more updated code requirements have proven to be more resilient in recent disasters. State and local communities should have the flexibility to adopt codes that address their resiliency priorities. 15
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