U.S. Sens. John Thune (R-SD) and Jerry Moran (R-KS) on March 28 introduced legislation that would expand Americans’ access to more affordable housing.
“The lack of affordable housing is an issue that is consistently raised by folks as I travel throughout South Dakota,” said Sen. Thune. “These shortages affect prospective homebuyers and renters, as well as small businesses that are trying to overcome pressing workforce needs.”
The Housing Supply Expansion Act, S. 3941, which is sponsored by Sen. Thune and cosponsored by Sen. Moran, would reform wage determination requirements under the 1931 Davis-Bacon Act to free up capital that could be redirected toward building additional affordable housing, according to a bill summary provided by the lawmakers.
“This commonsense legislation would increase the supply of affordable housing options, reform archaic requirements in the Davis-Bacon Act, and cut through its overly burdensome red tape,” Sen. Thune said on Monday.
Currently, the Davis-Bacon Act requires construction contractors involved in certain federally funded or federally assisted construction contracts to pay individuals working on the contract at least the prevailing wages of the vicinity in which the construction project is located, the bill summary states.
In turn, this may disincentivize the construction of affordable housing due to the high costs it places on construction contractors, the lawmakers said.
“Purchasing a home is a part of the American dream that is currently out of reach for many families,” Sen. Moran pointed out. “Reducing the burden of federal regulations will help homebuilders meet the demand for new homes, making homeownership a reality for more Kansans.”
The National Multifamily Housing Council, the National Association of Home Builders (NAHB), the Mortgage Bankers Association, the National Apartment Association, and the Aberdeen Home Builders Association endorsed S. 3941.
“NAHB commends Senators Thune and Moran for introducing legislation that will help lower the costs of multifamily construction by streamlining and modernizing Davis-Bacon prevailing wage requirements,” said Jerry Konter, chairman of the National Association of Home Builders.