A bill aimed at making new housing more affordable easily cleared its first legislative hurdle Tuesday.
HB 1005 would create a loan fund for local governments to offset infrastructure costs.
Person after person told a House committee that one of the biggest roadblocks to affordable housing is the cost of infrastructure – connecting things like water, sewer, gas and electric lines to new developments.
Gretchen Gutman is with Cook Group, a major Indiana employer that has started building homes to meet its employees’ needs.
“Infrastructure adds $57,500 to each parcel,” Gutman said.
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Legislation would create a loan fund that local governments can apply to, using the money to pay for those infrastructure costs. Seventy percent of the money in the fund would go to communities of less than 50,000 people – causing some to ask why larger communities get a much lower percentage.
Habitat For Humanity State Director Gina Leckron said urban areas have other funding opportunities, compared to more rural areas.
“We have less opportunity and less options to get support in those communities,” Leckron said.
The bill also ensures that the loans would be prioritized for communities that waive or eliminate some local ordinances – regulations that dictate things like garage size, off-street parking and design standards.
The committee unanimously passed the bill. It now goes to a different House committee, which will discuss a funding level for the program.
CORRECTION: A previous version of this story said Gretchen Gutman is with Cook Medical Group. That was incorrect. She is with Cook Group.