Senator Ricketts’ Weekly Column: Paving the ROAD to Housing

Nebraska is the best place in the world to live.  But for so many potential first-time homebuyers, the market has become out of reach.  This year, the average age of a first-time homebuyer is 40 across the country.  But in 2016, just a decade ago, the average first-time homebuyer was 31. Why is the age of an average homeowner increasing?  That’s because buying a home has become less affordable.  Red tape and regulations drive up the cost of housing.  This makes it more difficult for first-time homebuyers.

By one estimate, regulations account for nearly 25% of the cost of a single-family home.  For a typical apartment development, it’s even worse.  Regulations account for 40% of the cost.  That means fewer families can achieve the American dream.  I am fighting to provide more opportunity for hardworking Nebraskans.  With more available housing supply, we can make the Good Life more affordable for everyone.

Across Nebraska, rural housing is in high demand.  When I was Governor, I took steps to address this.  We passed a rural workforce housing bill.  We created a $7 million Rural Workforce Housing Fund and later added $10 million more.  Nebraska communities applied for grants, typically to make low-interest loans.  These funds helped homebuilders come to a rural community to build houses and apartment buildings.  They helped cover construction costs, down payment assistance, and technical assistance.  This program was simple and successful.

Housing is a barrier for people taking jobs in rural communities.  We made it easier for rural communities to build housing.  As Senator, I am advocating for this proven Nebraska solution for the rest of the country.  I’m working with my Republican colleagues to make it easier to build homes.

The Renewing Opportunity in the American Dream (ROAD) to Housing Act is a landmark achievement for Nebraskans.  My Senate Banking Committee colleagues and I already passed it out of committee.  The vote was bipartisan and unanimous.  Now, we're working to pass it into law.  The House also passed its version of the bill almost unanimously out of committee as well.  ROAD to Housing Act puts us on the path to make home ownership a possibility for all Americans.  The housing bill includes my bipartisan Streamlining Rural Housing Act.

The Streamlining Rural Housing Act will enhance efficiency and lower costs.  When I was Governor, Nebraska’s community-driven rural housing development program successfully built more homes.  However, the program faced burdensome and conflicting federal regulations.  In rural communities, financing for homes often draws on both the Department of Housing and Urban Development (HUD) and U.S. Department of Agriculture (USDA).  Each has their own process.  Their regulations overlap, creating confusion and more red tape.

The Streamlining Rural Housing Act will cut through this red tape.  It will help to streamline duplicative review and inspection processes between HUD and USDA.  By eliminating delays for approvals, we can build housing in rural Nebraska faster.  More housing options also means more affordable options keeping more money in your pockets.

The Streamlining Rural Housing Act is just one piece of how we are making housing more affordable.  I co-sponsored the bipartisan Rural Housing Service Reform Act.  The bill will improve existing loans, grants, and rental assistance to rural communities.  Veterans will also benefit from the ROAD to Housing Act.  I co-sponsored both the VA Home Loan Awareness Act and the Veterans Affairs Loan Informed Disclosure (VALID) Act.  These will help more veterans become homeowners.  They will make it easier for veterans to access the resources they need to benefit from the VA Home Loan Program.

I also co-sponsored the Housing Supply Frameworks Act, led by Nebraska Congressman Mike Flood in the House.  This will allow HUD to provide assistance to help state and local governments develop best practices on zoning and land-use policies.

Senate Republicans are working to enable more Nebraskans to become homeowners.  The Working Families Tax Cuts permanently raises the low-income housing tax credit.  The bill gives Nebraskans an extra 12% in tax credits to build more affordable housing.  This historic investment in America helps local governments, housing developers, and hardworking Nebraskans.  People seeking affordable housing will have the resources they need to develop their communities.

Eliminating conflicting requirements and enhancing efficiency will build more homes in Nebraska.  We will stop delayed approvals and poor communication.  We won’t hold builders back.  Common-sense housing reform benefits rural communities and hardworking Nebraskans.  It benefits local businesses and creates jobs.  We need to make housing more affordable.  That’s why I am fighting to pass the ROAD to Housing Act into law.  Together, we can continue building the Good Life.

My team and I are here to serve you.  Contact us anytime by phone at 202-224-4224.  You can also view my website at http://www.ricketts.senate.gov/contact.