River Bend Times

Senator Chuck Grassley has emphasized the need for continued oversight to address housing affordability issues in a recent statement. He highlighted the impact of inflation on housing prices, attributing a significant rise to the current administration's policies.

"Over the past four years, Americans saw home prices and, particularly, rents skyrocket as inflation ran rampant thanks to the policies of this administration," Grassley stated. He noted that overall prices have increased by 20 percent since the start of the administration, with housing prices rising nearly 40 percent according to the Case-Shiller National Home Price Index.

Grassley acknowledged that inflation has eased over the past year due to actions taken by the Federal Reserve but warned against using this as an excuse for further spending. "Unfortunately, that’s exactly what some of the proposals out there do," he said, specifically mentioning Vice President Harris' advocacy for substantial housing subsidies.

Economists have criticized such subsidy proposals for potentially exacerbating housing price increases. Grassley mentioned Ed Pinto's upcoming testimony quantifying how these policies might reduce affordability. He also referenced Jason Furman, former chief economist under President Obama, who criticized rent control policies supported by Harris: "Rent control has been about as disgraced as any economic policy in the tool kit."

Grassley called for a review of existing federal housing programs before adding new ones or expanding current ones. He pointed out that there are more than 100 federal housing programs with projected spending over $750 billion in the next decade. This figure does not include additional programs and loan subsidies from various government agencies.

He stressed improving existing policies by eliminating duplication and complexity rather than creating new programs. At a previous committee hearing, Bill Slover testified about inefficiencies and lack of accountability in state housing agencies. Grassley's oversight work revealed similar issues within HUD and local agencies.

"For decades, I’ve conducted oversight of the Department of Housing and Urban Development (HUD) and local housing agencies," Grassley said. His investigations exposed wasteful spending on salaries, vehicles, parties, and travel while those needing assistance faced long waits.

Grassley concluded by urging focus on compelling HUD to fulfill its responsibilities effectively instead of allowing taxpayer money to be wasted. He also welcomed Jack Salmon's input on fiscal issues related to debts and deficits affecting housing costs.

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