As rising costs continue to strain American households, Representative Monica De La Cruz (R-TX) is targeting a hidden driver of housing prices: regulatory delays and red tape that increase the cost of new construction.
The Freedom to Build Act seeks to eliminate this “bureaucrat tax” by directing the Secretary of Housing and Urban Development (HUD) to establish a voluntary “Freedom to Build” designation for localities nationwide. Communities that adopt regulatory reforms would qualify for the designation and receive priority consideration for existing HUD housing grants.
"Government overregulation has created a hidden tax on new home builds, putting the American dream of homeownership out of reach for too many Texas families,” Rep. De La Cruz said. “My Freedom to Build Act changes that.”
According to the National Association of Home Builders (NAHB), the "bureaucrat tax" accounts for 24% of the cost of a new single-family home and 41% of the cost for multifamily housing.
Rep. De La Cruz said the bill would reward communities that adopt key housing reforms, including removing restrictions on construction materials, streamlining the permitting process and rolling back mandates on what can be built, who can build it and how it is built.
Through this incentivization process, Rep. De La Cruz said the bill would help expand the nation's housing supply by encouraging local governments to reduce barriers to development.
“By rewarding communities that make key reforms, we can lower costs for Texas families and ensure they can afford a place to call home," Rep. De La Cruz said.
This effort comes as lawmakers in both parties look for ways to address affordability concerns facing American families, with both chambers recently passing the first bipartisan housing reform package in decades.
Rep. De La Cruz authored five of the package’s provisions.
“For many Texas families, the dream of owning a home has slipped out of reach,” Rep. De La Cruz said. “By expanding the housing supply, lowering costs and improving Veterans’ access to affordable housing, we are restoring the American dream through bipartisan, common-sense legislation.”
