Affordable housing challenge puts local control issue in the spotlight

As high-tech manufacturing plants such as SK Battery US are lured to Georgia, affordable housing for workers is emerging as a key challenge.

In his State of the State address last week, Governor Brian Kemp proposed $35.7 million in the amended fiscal 2023 budget to create a rural workforce housing fund.

If the governor’s budget recommendation is approved, the program would be focused on helping local governments finance the infrastructure needed for building new housing developments, according to Christopher Nunn, Commissioner of the Georgia Department of Community Affairs (DCA).

Many developers and other free-market advocates believe local regulations imposed by city and county governments drive up the cost of housing.

But local governments oppose state laws that would preempt local regulation of zoning, building designs, and control over the construction of build-to-rent projects.

Todd Edwards, Deputy Director of Governmental Affairs for the Association County Commissioners of Georgia (ACCG) told Capitol Beat News Service he thinks it’s disingenuous of certain groups to blame high housing costs solely on local government regulations, noting that the affordability of housing is a very complex issue.

Edwards pointed to a wide variety of factors that contribute to the cost of housing, including supply chain issues, labor shortages, inflation, and interest rates.

He added that if local governments cannot impose regulations around housing, the houses are likely to be built to “the lowest common denominator” and quickly sold to institutional investors.

In Franklin County, one developer has already sued the County when the Board of Commissioners denied his conditional use permit and rezoning request to build a rental community in Sandy Cross.

Corridor Development of Lawrenceville wanted to build 399 townhome units and a strip mall on 47 acres at the intersection of Highways 51 and 59.

The developer planned to provide affordable housing for the anticipated growth in hiring by SK Battery in Commerce. This week, the Company announced it had exceeded its goal of hiring 2,500 workers two years early and set a new goal of hiring another 500 workers.

At the time, the County was in the midst of updating its building ordinances and zoning map and while the new Unified Development Code and zoning map has been approved, work continues to make adjustments.

In their 16-page lawsuit filed May 4, 2022, the Company called the Franklin County Commission’s decision “arbitrary and capricious” and a “wielding of Franklin County’s zoning ordinance to prevent the development of a residential and commercial development.”

They also claimed Corridor Development was not given any legally justifiable reason by the Board of Commissioners for denying their application.

However, the attorney for Franklin County, Bubba Samuels responded that the Board and the County Commission Chairman have legislative and sovereign immunity.

Samuels also stated that Franklin County, the Commission Chairman, and the Board of Commissioners have legislative immunity.

Edwards said the ACCG and the Georgia Municipal Association are currently developing recommendations to increase the affordable housing supply in Georgia without preempting local control.

State preemption laws have failed to garner legislative support in the past few General Assembly sessions.

Capitol Beat News Service, a project of the Georgia Press Educational Foundation, contributed to this story.