'Windfall profit': Lawmakers who build homes file bills to help their industry
Another great piece of investigative reporting by Indy Star’s Ko Lyn Cheang. The Indiana legislature is packed with home builders and landlords. That they don’t see the conflict of interest is troubling. They are either incapable or ignorant - either way it’s a problem.
That Indiana legislation hampers builders is repeated so often it’s become a trope. The reality is that while building costs have certainly increased, the ability to profit has not.
“The lawmakers say the bills would help address the affordable housing shortage.” No, it won’t. The belief that more houses will alleviate affordable housing issues is ridiculous. In theory, it’s not a simple shortage of all housing. While there may be a trickle down effect from market rate housing, most data shows that more market rate housing actually increasing all housing prices.
“Two powerful lobbying groups support the legislation and they've made substantial donations to Indiana Republican lawmakers in recent years.
The Indiana Apartment Association’s powerful campaign finance wing, the Indiana Multi Family Housing Political Action Committee, was the top donor to Indiana House Republicans Campaign Committee in 2021, donating $75,000. They voiced support for HB 1575 and HB 1005.
Meanwhile, the Indiana Builder’s Association political action committee donated more than $168,000 to Indiana Republicans in 2021 and 2022 alone, according to campaign finance reports. They voiced support for all three bills.
Both lobbying groups have made thousands of dollars in campaign donations to Rogers, Miller and O’Brien since 2018.”
Here lies the reality of Indiana politics. Special interests have acted with impunity and their interests are their own not the people of Indiana. We saw the Indiana Apartment Association’s ability to kill all tenant empowerment legislation with SB202 and HB1148. Their influence is scary.
When asked why her bill does not require the homes to be affordable, Rogers said, "We didn’t put that in because how do you define affordability?"
This may be the most troubling statement in this article. “How do you define affordability?” Well Senator Rogers, it’s a well-known definition, not just in Indiana but in the country, and a simple one. Affordable housing is housing, whether owned or rented, that requires one to spend less than 30% of their income on housing. The more technical version is 30% of area median income (AMI), but still a simple, clear definition. If you need a primer Senator Rogers, check out this simple video.
