Georgia lawmakers have just four legislative days until Crossover Day — a short window to mount a final push for legislation to rein in institutional housing investors, increase tenant protections, and make housing more affordable to regular people.
March 6 is the last day for bills to cross over from one Gold Dome chamber to the other for a shot at passing before Sine Die on April 2 — but many housing proposals are struggling to gain traction.
One groundbreaking bipartisan bill aims to curb how many rental houses an institutional investor can own, but it hasn’t yet made it to a committee hearing in the House. House Bill 1228 and its companion, House Resolution 1244, propose more than doubling property tax assessments for corporate homebuyers that own 1,000 or more single-family rental homes, which would require a constitutional amendment. If passed, voters in November would decide whether the state should tax those properties at 100% of their assessed value, instead of the 40% dictated by the Georgia Constitution.
It’s the Legislature’s most significant effort to reduce the influence of institutional homebuyers on Georgia housing markets. But its author, Rep. Derrick McCollum (R-Chestnut Mountain), didn’t sound so optimistic about its prospects on Monday, saying lobbyists for institutional investors have swarmed the statehouse to oppose the bill and others vying for corporate homeownership regulation.
The local realtor lobby, which usually resists any effort to regulate homebuying, actually supports HB 1228, McCollum added, so its chances hinge on whether it can get a hearing from the House Ways & Means Committee. “I think, if I can get it a committee hearing, we can get it out” of the House and into the Senate before Crossover Day, he said.
McCollum is also pitching House Bill 1115, the End Home Poaching Act, which would cap the number of Georgia homes a corporation could own at 2,000. But that bill is stuck in the House Governmental Affairs Committee.
Tenant protection, housing affordability bills
Corporate landlords with outsize rental holdings have flocked to Georgia “because of the absence of basic tenant protections in this state,” said Elizabeth Appley, a lobbyist for HouseATL and the Georgia Supportive Housing Association.
Democratic Georgia House members have proposed a package of legislation to bolster tenant protections and make housing more affordable for average people. But the bills aren’t moving much.
HB 1171, for instance, would broaden minimum habitability standards for rental housing, requiring landlords to maintain “clean and safe conditions,” plus functional appliances — but it hasn’t gotten a committee hearing yet.
The housing affordability bills are also facing crunch time. So far, none have made it out of committee.
- HB 1145, would establish a statewide homestead exemption for public service workers, including police officers, firefighters, teachers, and healthcare employees who make less than 150% of the area median income. It’s before the House Ways & Means Committee.
- HB 1153 would award a tax credit for a newly built home purchased by a taxpayer making 80% or less than the area median income. It’s before the House Ways & Means Committee.
- HB 1166 would override local zoning restrictions, so that homeowners could build 400 square feet or smaller tiny homes on their lots. The House Governmental Affairs Committee heard the bill on Monday but did not advance it. It will return to the committee for another hearing on Wednesday.
- HB 1252 would give regular homebuyers a 30-day window to buy a house before investors can try to purchase it. It’s before the House Judiciary Committee.
Dueling housing tax bills
The Republican bill to cut the state income tax, Senate Bill 476, also threatens affordable housing production in Georgia. To offset the loss in income tax revenue, the bill would pare back and then phase out certain state tax credits, including the Low Income Housing Tax Credit (LIHTC), which is the state’s chief funding mechanism for affordable housing.
Under this measure, instead of matching the full amount of the federal affordable housing tax credit, Georgia would cap its LIHTC at 50% of the full federal LIHTC amount in 2027. SB 476 would also sunset the state’s LIHTC at the end of 2031, after which it would no longer be available unless the Legislature renewed it. The bill passed the Senate on Feb. 12 and is now before the House Ways & Means Committee.
But another Republican bill, House Resolution 1392, proposes a constitutional amendment to classify affordable housing developments — including LIHTC-funded projects — as a separate type of property with regard to property taxes, which would open the door to taxing them at a lower rate. It’s a provision that already applies to mobile homes, trailers, and RVs. However, the bill hasn’t made it out of the House Ways & Means Committee. “We’re trying to get that heard,” Appley said.