--- title: House Rural Development Committee, February 11, 2026 collection: meetings id: 2026-02-11/house-rural-development cite_as: House Rural Development Committee, February 11, 2026, video https://vimeo.com/1163743260 (machine transcript by Georgia Commons) canonical_url: https://georgiacommons.org/meetings/2026-02-11/house-rural-development md_url: https://georgiacommons.org/meetings/2026-02-11/house-rural-development.md text_url: https://georgiacommons.org/meetings/2026-02-11/house-rural-development/text source_url: https://vimeo.com/1163743260 date: 2026-02-11 status: machine transcript corpus_version: meetings-2026-10-23-8c15ead0f18d license: Machine transcript and summaries by Georgia Commons from the General Assembly's public video; the video stays on the General Assembly's Vimeo channel; see about.md publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice. up: https://georgiacommons.org/meetings/2026-02-11.md previous: https://georgiacommons.org/meetings/2026-02-11/house-defense-and-veterans-affairs.md next: https://georgiacommons.org/meetings/2026-02-11/house-technology-and-infrastructure-innovation.md index: https://georgiacommons.org/meetings/index.md chamber: House body: House Rural Development Committee body_url: https://georgiacommons.org/meetings/house-rural-development.md meeting_kind: committee session: 2025-2026 Regular Session start_time: 2026-02-11T15:00:00-05:00 location: 515 CLOB duration_seconds: 3551.0 video_id: 1163743260 video_title: 2.11.26 Rural Development agenda_url: https://www.legis.ga.gov/api/document/agendas/house/Rural Development%2FRural Development Committee Meeting Notice 2-11-2026.pdf bills_discussed: - HR 656 - HB 555 summaries_model: gpt-6.1-sol transcript_turns: 172 --- # House Rural Development Committee, February 11, 2026 House Rural Development Committee; February 11, 2026; 2025-2026 Regular Session. Video, on the General Assembly's Vimeo channel: https://vimeo.com/1163743260. Agenda: https://www.legis.ga.gov/api/document/agendas/house/Rural Development%2FRural Development Committee Meeting Notice 2-11-2026.pdf. > This is a machine transcript of the General Assembly's video, made by a speech-recognition model. It is not an official record and can mishear words, names, and numbers. Speakers are not identified. The video is the record: every timestamp links to the moment it plays. ## Summary written by Georgia Commons Written by gpt-6.1-sol from the transcript below. It is not part of the record. Quote the transcript or the video, not the summary. The committee held a hearing on [HR 656](https://georgiacommons.org/bills/2025-2026/hr656), which would create a House study committee on expanding homeownership opportunities. The sponsor, committee members and witnesses discussed large investors buying single-family homes, competition for starter homes, construction costs and rural housing shortages. Witnesses supported further study while offering different approaches, including increasing housing supply, changing regulations and using tax policies rather than ownership limits. The discussion also covered [HB 555](https://georgiacommons.org/bills/2025-2026/hb555) and objections to its proposed ownership caps. The chair designated the meeting as hearing only, and no vote was taken. ## Bills discussed (2) Each account was written by gpt-6.1-sol from the stretch of the transcript it names. The bill's number is said in that stretch, unless it was the only bill on a committee's agenda. ### HR 656. House Study Committee on Expanding Home Ownership Opportunities for Georgians; create [HR 656](https://georgiacommons.org/bills/2025-2026/hr656) (2025-2026 Regular Session). From [0:16:59](https://vimeo.com/1163743260#t=1019s), turns 8 to 170. The sponsor presented a substitute creating a House study committee on homeownership and institutional investment, with input from rural communities, renters, small landlords and industry. The sponsor said medium and large investors buy nearly one in five homes statewide and roughly one in three in metro Atlanta, squeezing families out of starter homes. Asked about rural blight, the sponsor said the study should address it. Asked about other states and constitutional limits, the sponsor cited legislation elsewhere but left legal questions for study. Members raised concerns about affordable housing, population loss and rural communities needing any development. A Home Builders Association of Georgia witness supported the study, argued that more housing supply would lower prices and distinguished investors buying existing homes from those building rentals. The witness attributed 27% of new-home costs to regulation and discussed permitting delays and building requirements. A Georgia Association of Realtors witness supported tax-based approaches rather than caps or bans, described difficulty tracing ownership through related companies and said a national study put first-time buyers’ average age at 40. A Greater Vidalia Chamber of Commerce witness supported learning from other communities before coastal growth reaches Toombs County. The chair closed the hearing without a vote. ### HB 555. Georgians First Residential Property Protection Act; enact [HB 555](https://georgiacommons.org/bills/2025-2026/hb555) (2025-2026 Regular Session). From [0:32:11](https://vimeo.com/1163743260#t=1931s), turns 63 to 107. The bill’s sponsor described buyers losing homes to corporate purchasers offering above asking price and quick closings. The sponsor said corporate ownership threatens families’ opportunities to build wealth and can raise property taxes and land costs. The sponsor acknowledged private-property-rights objections to the earlier proposal and described a newer tax-based approach intended to help small landlords and homebuyers while slowing corporate purchases. A Georgia Association of Realtors witness said the association had opposed [HB 555](https://georgiacommons.org/bills/2025-2026/hb555) because large companies could divide ownership among multiple limited liability companies to evade ownership caps. No motion or vote on the bill occurred. ## Transcript (172 turns) [0:09:22](https://vimeo.com/1163743260#t=562s) Everyone, are we... [0:09:28](https://vimeo.com/1163743260#t=568s) Everyone, um, this resolution that we're gonna hear today is gonna be hearing only, but if you'd like to speak to it, there is a sign-up sheet up here on the table, and we'll get started in three or four minutes or whenever we have a quorum. [0:15:08](https://vimeo.com/1163743260#t=908s) Okay, everyone, I'm gonna call the House Rural Development Committee to order, and I have asked Representative Patty Stinson if she would open us up with a word of prayer. What number are you? [0:15:21](https://vimeo.com/1163743260#t=921s) Nine. [0:15:22](https://vimeo.com/1163743260#t=922s) Gotcha. Okay. [0:15:23](https://vimeo.com/1163743260#t=923s) Yes, ma'am. May we all bow. Dear Heavenly Father, we come to you this afternoon with a grateful heart, thanking you, dear God, for this beautiful day you've blessed all of us to see. Lord, we pray and ask you to be in the midst of this rural development meeting. Let us all be mindful of your faithfulness and your grace. Lord, we thank you for all your many blessings. For it's in Jesus' name we do pray. Amen. [0:15:47](https://vimeo.com/1163743260#t=947s) Thank you very much. All right. Well, welcome, everybody, to this, uh, our second meeting of the year. And, um, before we get started, I have some people I just wanna t-take a moment of personal privilege to recognize. Uh, from the Greater Vidalia Chamber of Commerce, I've got Michelle Johnson, who is the president of the chamber and executive director of the Toombs County Development Authority, and a good friend. [0:16:20](https://vimeo.com/1163743260#t=980s) I've got Debbie Evans, who is the executive vice president of the Greater Vidalia Chamber, and a good friend. And I have Mike Hagan, who is the chairman of the chamber's Business Advocacy Council, and my husband. So I'm so glad that y-you three are here. And then also I wanna make sure, I'm just gonna recognize my constituents right now. Jason Dunn, who is the executive director of the Fitzgerald-Ben Hill Development Authority, among many, many other things, and also a good friend. [0:16:51](https://vimeo.com/1163743260#t=1011s) So I wanna thank y'all for being here for our committee meeting today. Well, our business this afternoon is to hear House Resolution 656. The sponsor is Representative Phil Olaleye. And it is a hearing only, but it's a topic that many of us have discussed, uh, collectively and in, in smaller conversations many times over the years, um, but members of this committee and otherwise. And so, uh, Representative, I look forward to, uh, hearing about this resolution. [0:17:24](https://vimeo.com/1163743260#t=1044s) And then, committee, I want you to know that I'm en- I'm encouraging us to have robust conversation about this if you like. Representative, one second here. Okay. Think I gotcha. [0:17:38](https://vimeo.com/1163743260#t=1058s) Thank you, Madam Chair. Uh, committee members, good afternoon. Uh, I'm presenting HR 65656. It is a sub, uh, so it's LC590299S. Uh, and it creates a, a pretty standard, uh, house committee structure to better understand how housing market pressures driven by, uh, large, uh, o-out-of-state Wall Street firms are increasingly affecting rural and exurban Georgia, not just our cities and our suburbs. [0:18:12](https://vimeo.com/1163743260#t=1092s) And so we all know in this room that housing i-is just getting harder to come by, uh, across the state, and f-folks are feeling it every single day. Uh, it's not a surprise that Georgia is, uh, viewed as being ground zero for institutional investments in single-family homes. Uh, nearly one in five homes purchased statewide and roughly one in three across the metro area, um, are now bought by, uh, these medium, large, um, investors who frankly can just move faster. [0:18:44](https://vimeo.com/1163743260#t=1124s) Uh, they come in and they purchase in bulk, uh, all-cash offers, and make it hard for, uh, the average family to compete. And as a result, families and first-time buyers are being squeezed out of housing opportunities and, uh, the American dream. And so, uh, you know, I've had a conversation with, uh, members of the committee and, uh, uh, the chairwoman and I have had some great conversations and, uh, I wanna clear something up. This is not just a city and suburban issue. [0:19:18](https://vimeo.com/1163743260#t=1158s) Uh, what's more troubling is that, uh, we're seeing these institutional investment acquisitions, uh, rise not only here, uh, in Metro Atlanta, but throughout, uh, rural and smaller counties. And so, uh, even a few hundred investor-owned homes in these areas can significantly raise prices, rents, and impact who gets, uh, to, uh, call, uh, a place that they love dearly home. And, uh, in our rural and, and smaller counties, that supply is just thinner, so it doesn't take, uh, 1,000 homes to really move the needle when we're talking about, uh, the price, uh, of a home or, or rent costs. [0:20:01](https://vimeo.com/1163743260#t=1201s) And so, uh, this bill is, again, we need time to be thoughtful and deliberate about, uh, what, uh, interventions and solutions, um, can bring some balance and some fairness to the housing market. Uh, I wanna be, uh, clear that, uh, it's meant to be inclusive and involve farmers and renters and small landlords, home buyers, uh, realtors, uh, local officials and industry partners to develop a coordinated and balanced approach that reflects, uh, rural, urban, suburban, and, and statewide realities, not a one-size-fits-all approach. [0:20:36](https://vimeo.com/1163743260#t=1236s) And the goal is to act early. We don't wanna rush to judgment. Again, let's take some time, work cooperatively, uh, and protect home own-ownership as the foundation of economic stability and community life for all Georgians. That's, uh- The, the resolution and, and study committee, Madam Chair, and I'm happy to take any questions from the committee. [0:20:58](https://vimeo.com/1163743260#t=1258s) Okay, thank you for that presentation. And you do have a couple of questions. I'll start with Representative Mack Jackson. [0:21:07](https://vimeo.com/1163743260#t=1267s) Thank you, Madam Chair. Thank you, Representative, for bringing this b- uh, resolution. Um, in this resolution, it's a study committee, as I understand it, are we really gonna go to the rural, rural, rural areas and look at housing in rural areas where we got blight in rural communities where there are abandoned houses, there are neighborhoods that, uh, houses really need to be torn down? Are, when we talk about a study committee, are we gonna get down to the real issues in rural Georgia in the study committee? [0:21:40](https://vimeo.com/1163743260#t=1300s) That's, that's the hope, Representative. And again, uh, I, I'm not saying that, uh, these institutional investors don't provide any value. Uh, you mentioned blight. Uh, that was the pitch to many parts of Metro Atlanta, particularly after the Great Recession, um, when a lot of folks fell on hard times and had to, to lose their homes. And, uh, the idea was they were gonna come in to help rehab and make those homes more livable, uh, and then get those homes back into the hands of, of Georgians, but that's just not the case. [0:22:15](https://vimeo.com/1163743260#t=1335s) They're holding onto those properties, and, uh, instead of them being the home that they were designed to be, uh, for Georgians, for families, for workers, uh, it's becoming more of an investment product. Um, and, and, you know, I'm free, uh, definitely pro- uh, competition and, and pro-free markets, but what we're seeing, at least in the Metro area, and it's beginning to bleed outward into, uh, more rural and, uh, exurban parts of the state, is, uh, I mean, they are purchasing whole neighborhoods. [0:22:47](https://vimeo.com/1163743260#t=1367s) We have a, uh, a member of ours whose district, uh, 90%-plus of the single family home rental market is owned by an institutional investor. And so when we're talking about influence over our housing market, when we're talking about how, uh, ownership in the hands of folks who don't, uh, go to school, uh, they don't work in the community, uh, they don't worship in the community, uh, oftentimes these are out-of-state actors, um, I'm not sure if we're wanting to have, uh, as many homes as they have on their inventory in their hands. [0:23:24](https://vimeo.com/1163743260#t=1404s) Thank you. [0:23:27](https://vimeo.com/1163743260#t=1407s) Representative. Representative Stinson. [0:23:31](https://vimeo.com/1163743260#t=1411s) Yes, ma'am. Thank you, Madam Chair. I just want to, um, ask that- that this committee really take this into serious consideration, because housing is really a issue. It's a maj- major issue, um, in my area of the state. Um, every other day I'm having conversations with constituents about trying to find affordable housing. Um- [0:23:56](https://vimeo.com/1163743260#t=1436s) Yeah [0:23:57](https://vimeo.com/1163743260#t=1437s) ... it, it's a major issue. And, and, and I, and I'm, and I really want my district to grow, but I'm afraid if we can't provide decent, affordable housing, more and more people are gonna move to areas where they can find housing, and that's gonna deplete the population in my area. So I just really hope that, um, that we can, that this will pass so we can really start moving in a different direction in this state when it comes to addressing the housing shortage. Thank you. [0:24:26](https://vimeo.com/1163743260#t=1466s) Thank you. [0:24:28](https://vimeo.com/1163743260#t=1468s) Representative. Representative Cameron. [0:24:32](https://vimeo.com/1163743260#t=1472s) Thank you, Madam Chairman. Um, I see in your, in your bill the median price and how it's risen, but do these people come into the communities at a certain price point? Or, uh, how, how do they segment the market? [0:24:46](https://vimeo.com/1163743260#t=1486s) That's a great question, Representative. Typically, the target are starter homes, because they're just cheaper to acquire. Uh, and, uh, they will target starter homes. Um, in some cases, hold onto those homes and wait for, uh, the community to, uh, develop, uh, and appreciate, and value. Um, or they'll come in and rehab those homes and then rent them out. And, uh, what we see is the presence of institutional, um, uh, investments in our single family homes. [0:25:19](https://vimeo.com/1163743260#t=1519s) Uh, rents typically increase. Evictions typically increase. Um, uh, safety issues typically increase, um, because it's, it's creating a, a, a renter class instead of being focused on rehabbing the home to then transition that home into the hands of, of a family or, or an individual who's seeking to sink some roots in the ground, uh, and really become a part of that community long term. And so, um, that seems to be the trend, and there are others who can speak, uh, more pointedly to that question around, uh, what types of homes and price points they're targeting. [0:25:58](https://vimeo.com/1163743260#t=1558s) Um, but again, I think it's appropriate that we're having this conversation within, uh, the Rural Development commitity, committee, because once they're done here, uh, they've gotta go somewhere else. And, uh, what we're seeing is those numbers beginning to climb and climb, uh, in our rural and exurban, uh, parts of the state. [0:26:18](https://vimeo.com/1163743260#t=1578s) Thank you. [0:26:19](https://vimeo.com/1163743260#t=1579s) Thank you. [0:26:21](https://vimeo.com/1163743260#t=1581s) Uh, you know, as we've talked about this over the past few weeks, well really, months I think, uh, at first I didn't really consider that this was an issue in rural Georgia, but upon reflection, it really is. Because we've got, um, just because there may not be a, a national company or a global company that's coming in and doing it, there are, there are individuals in a lot of rural communities that are buying up the, the- I guess you call it starter home stock. [0:26:52](https://vimeo.com/1163743260#t=1612s) And for someone like me and others who have, um, children, grandchildren, nieces and nephews who want to s- to s- get on that pathway of home ownership in their community, but the houses are purchased by someone before they get the opportunity to purchase it themselves, and then all they have the opportunity to do is rent it. And like you said, there's definitely a need for h- for rental homes. [0:27:19](https://vimeo.com/1163743260#t=1639s) Yeah. [0:27:19](https://vimeo.com/1163743260#t=1639s) But when, when you can't own a home in a community, that's a problem. Okay, enough from me until we hear from [0:27:31](https://vimeo.com/1163743260#t=1651s) Chairman Corbett. [0:27:33](https://vimeo.com/1163743260#t=1653s) Thank you, Madam Chairman. [0:27:36](https://vimeo.com/1163743260#t=1656s) Is that it? [0:27:37](https://vimeo.com/1163743260#t=1657s) Yes. [0:27:41](https://vimeo.com/1163743260#t=1661s) Um, should be. [0:27:46](https://vimeo.com/1163743260#t=1666s) You wanna, you wanna try a mic? [0:27:48](https://vimeo.com/1163743260#t=1668s) A mic. [0:27:52](https://vimeo.com/1163743260#t=1672s) Okay. [0:27:52](https://vimeo.com/1163743260#t=1672s) Can, can you hear me now? Can, can you hear me now? Oh, all right. [0:27:55](https://vimeo.com/1163743260#t=1675s) It got loud and partially not [0:27:57](https://vimeo.com/1163743260#t=1677s) Not, not a problem. Not a problem. Uh, thank you, Madam Chair. Um, quick question, uh, for the author. Have, have other states been able to do this successfully? Uh, have you looked at what other states might have done and, and is that feasible? And does it violate the Commerce Clause or if they, they, other states are doing it? [0:28:14](https://vimeo.com/1163743260#t=1694s) Yeah. [0:28:14](https://vimeo.com/1163743260#t=1694s) I mean, can it be done? [0:28:17](https://vimeo.com/1163743260#t=1697s) That's a great question, Chairman. Other states, uh, are looking into it, have passed legislation. And, and frankly, the issue is just not at an extreme point yet in, in other states, where, uh, it's becoming, um, as much of an issue as it here, as it is here in Georgia. I mean, Georgia, w- we have just the greatest presence of these institutional investors in our market, um, yet we have no solutions, we have no guardrails, we have no interventions. [0:28:47](https://vimeo.com/1163743260#t=1727s) Again, uh, to, to be balanced, and we don't wanna set in motion any unintended consequence, which is why we need the time and space to be thoughtful and to study. And, uh, you know, I'm pointing to, to one of my good friends and one of our fellow colleagues who has a, a, a great solution, um, that he's put forward to kind of reign in, um, that outsized influence that some of these out-of-state, uh, institutions and actors have, uh, but we don't know. Uh, I think that's the big question mark that we've gotta wrestle to the ground, and it's gonna take bringing everybody, uh, whether you're for or against it, to the table, uh, to study it, to look at the resource, look at the research, um, more in depth, and, uh, to form some recommendations that are rooted in, in, in the information and, and data that, uh, we can pore through. [0:29:39](https://vimeo.com/1163743260#t=1779s) So, uh, it's a big, it's a big issue. Again, it's housing. Uh, it's the most, uh, precious asset for many, uh, families when we're talking about creating wealth. Uh, you know, uh, uh, Chair Lady Hagan and I have talked a lot about our kids, and my boys are two and four, and I wanna leave them something. Uh, the home that my mom raised me in, in, in DeKalb County, uh, she fell on hard times and had to, uh, let go of, you know, decades of investment, and guess who owns it? [0:30:12](https://vimeo.com/1163743260#t=1812s) An institution. Um, and so it's a personal, uh, matter for me, and, uh, it's one that I'm hearing more and more of in my community, but not just here in Atlanta, uh, in, in many different parts of the state. So at some point we gotta come to the da- table and, uh, confront the reality that many Georgians are experiencing. [0:30:33](https://vimeo.com/1163743260#t=1833s) All right. Very good. That seems to be all the questions you have from the committee at this time. We do have a few people who have signed up to speak. And Representative Olaleye, you wanna just stay right here? [0:30:44](https://vimeo.com/1163743260#t=1844s) I can. [0:30:44](https://vimeo.com/1163743260#t=1844s) And that way if there's, if anybody has another question for you, you could answer them from, from here or the podium, wherever you're more comfortable. Okay. Um, I'm gonna go in the order that everyone's signed up with one exception. Representative McCollum, do you have somewhere you need to go? Do you wanna go ahead and speak first? [0:31:03](https://vimeo.com/1163743260#t=1863s) No. [0:31:03](https://vimeo.com/1163743260#t=1863s) Well, let's just go ahead and hear from you so you can get to your next meeting. [0:31:07](https://vimeo.com/1163743260#t=1867s) Thank you. [0:31:07](https://vimeo.com/1163743260#t=1867s) You're welcome. And d- to all of, um, everyone who's signed up to speak, we've got plenty of time, but let's still try to keep it to about five minutes or less. [0:31:20](https://vimeo.com/1163743260#t=1880s) Thank you. I'll be, uh, I'll, I'll try to be brief. Um, this is something that I've been passionate about for, I started this when I first came in the legislator, uh, three years ago. I had a bill, um, last year and, uh, it, it's, it's very passionate to me 'cause I feel like that, that it's gonna destroy America's middle class. Um, you know, during World War II, the, the veterans came home from World War II and, and they bought a little house, and they built a family, and they built equity in that house and sent their kids to school. And I, I apologize if I'm being redundant on, uh, what, what my colleague had said, but, um, I feel like that if we, we stop home ownership in America, uh, by li- letting these big corporations come in and buy up the houses and, and we're doing a disservice to our kids. [0:32:08](https://vimeo.com/1163743260#t=1928s) When I, when I dropped my legislation, uh, HB 555, I had a lot of interns, attorney, you know, attorneys in the Capitol come up to me and say, "Thank you for doing this. Uh, we saved up, uh, $50,000 and wanted to try to buy a house, and we go out and look for a house, and we find one we like, and, and before I can get down a contract and buy it, a, a corporate, uh, you know, one of these, uh, big corporate, uh, entities come in and, and pay over asking for price and, uh, close in 15 days." I'm a capitalist, and I feel like that, uh, you know, uh, this is not capitalism because when you're competing against a company that's worth billions or trillions of dollars, you're not on a fair playing field. [0:32:56](https://vimeo.com/1163743260#t=1976s) So I feel like this is a, a, like I said, a disservice. I remember when I bou-bought my first house. It was a, it was a used, you know, older house, um, and it needed a little bit of work. And I bought it and, and, and fixed it up and, and built equity. Well, unfortunately these companies, um, they come in and they buy houses in subdivisions. Uh, they obviously are, are building whole rent subdivisions, but also they're buying up these little houses, like little two, two-bedroom, one-bathroom bi-brick house that, that a young person could afford to, to build a family in, and that's gone away. [0:33:36](https://vimeo.com/1163743260#t=2016s) They, they, you, they can't buy those because they're getting outbid and, and out-bought out. So I think this is something we've gotta address. Georgia's number one in the United States. They own 83,000 houses, 30% of the single-family housing in Georgia, which is astronomical. Um, and they're not stopping. Um, so I think, you know, I, I've had a lot of people tell me, you know, my HB 555 they didn't like because of, uh, private property rights, which I 100% get. Uh, I, I understand that. [0:34:08](https://vimeo.com/1163743260#t=2048s) But I've had so many people say, "Well, we need to do something, but this isn't it." So the legislation I have this year I think is a, a, a very good start. It's a tax, you know, and it does two things. And, and I, I apologize, I'm not, uh, going over my bill, but, but it helps the mom-and-pop people that have some rental houses, which is a great avenue for them to be able to build their retirement. You know, when you have a few houses, I have had a few houses for 30 years. So that does one thing, but it also helps the, the people coming in and being able to buy, buy the houses. [0:34:44](https://vimeo.com/1163743260#t=2084s) So, and it slows the corporate owners down. So I'm just pretty passionate about this because really our young people, my kids is why we're, I'm here. My kids and my grandkids and Georgians, to try to help Georgians. One other thing that they're doing is they're driving up our property taxes, because what they do is they go in a s- a subdivision, they'll buy a house, they overpay for it, and then the tax assessor comes in, reassesses everybody's taxes based on that one comp, and then everybody's property taxes goes up. [0:35:18](https://vimeo.com/1163743260#t=2118s) Also, what they're doing is they're overpaying for p- for land. When they build a subdivision, uh, they're overpaying for it because they've got plenty of money. And there again, it drives the cost up of land. So when they bu- these builders be fi- build fee simple things, they're having to overpay for their land, so then the houses go up. Now starter home's $400,000. So I, I'd be glad to answer any questions if anybody has any. Well, Representative McCollum, you clearly care very much about this topic, as do, do we, and I appreciate all the thought you've put into it over the, the years. [0:35:54](https://vimeo.com/1163743260#t=2154s) Does anybody have any comment or question for Representative McCollum? Okay. I don't see any. Thank you for letting me speak. [0:36:04](https://vimeo.com/1163743260#t=2164s) Thank you. Okay, let's hear from Austin Hackney with the Home Builders Association. Thank you for being here today. [0:36:15](https://vimeo.com/1163743260#t=2175s) Thank you. Thank you, Madam Chair. Am I gonna mess anything up if I close this laptop all the way? I don't think so. Okay. Thank you. My name's Austin Hackney. I'm here on behalf of the Home Builders Association of Georgia. I wanna thank you for the opportunity to present, and also thank Representative Olaleye, Olaleye for bringing the study committee resolution. And any study committee with that title is gonna be something we are very supportive of. Expanding housing opportunities for Georgians is literally the mission of the Home Builders Association of Georgia. So, uh, would be happy to, um, speak to the study committee and the need, and then of course, if it is established, w- would love to participate on behalf of the Home Builders of Georgia. [0:36:56](https://vimeo.com/1163743260#t=2216s) But I also brought a study committee report from 2019 that the Georgia House did on workforce housing. [0:37:07](https://vimeo.com/1163743260#t=2227s) And, uh, this was a 2019 study committee. Chairman Vance Smith was the chair of the study committee. Uh, Representative John Corbett was a member of that study committee as they went all over the state, uh, hearing about housing issues, workforce housing in particular. But I would encourage you, uh, to take a look at, at this report of the study committee. And, um, I was able to present to that study committee then. And, um, part of my presentation at that point, uh, was something that, um, I've done plenty of times in, in front of the legislature, but the four Ls are what makes up the cost of a house. [0:37:44](https://vimeo.com/1163743260#t=2264s) And that, that was the presentation then. Since then, we've added lending as a fifth L, uh, on what makes a house more or less expensive from the supply side of the construction costs to put it together. So the five Ls now are labor, land, lumber, lending, and laws. And any levers that you turn up and down on any of those five topics will affect the price of a house. And so just real quickly, you know, labor, and this is 2019 it was true, it's even more true today in 2026, labor is more expensive than it used to be. [0:38:20](https://vimeo.com/1163743260#t=2300s) And every year it gets more and more expensive. I- in 2019 when I made that presentation, it had risen five and a half percent just from the previous year. Uh, land costs, um, a- as anybody who's looked at Zillow recently knows, land costs are more expensive than ever. We have bills, uh, w- that we support in front of the legislature right now that would, that would help on some of those land costs with the permitting delays and other things that are barriers to getting, um, buildable lots into the marketplace that home builders can get families into. [0:38:53](https://vimeo.com/1163743260#t=2333s) Uh, lumber [0:38:55](https://vimeo.com/1163743260#t=2335s) ... is, it really just refers to the cost of all building materials, but lumber in particular. Um, a third of all US lumber, which I know is important to this committee in particular, is used to build new homes. And so that, that price fluctuating is a big deal for the price of your house. In 2021, we saw lumber packages, uh, just explode in price because of how much demand there was during that time, um, during COVID. Um, but lending, uh, as everybody knows, mortgage, uh, rates are, are higher than, than they used to be, but not higher than they've ever been. [0:39:30](https://vimeo.com/1163743260#t=2370s) Um, but at the end of the day, laws is what you guys can affect the most, obviously. And, um, studies show that 27% of the cost of a new home is related to those regulations that get put on it a- at all different levels of construction or stages of that process. So, um, some of that is new building code requirements, some of that is development regulations, um, but at the end of the day, laws is really the, the best tool that the legislature has, uh, for affecting those prices. [0:40:02](https://vimeo.com/1163743260#t=2402s) So, um, uh, to say all that about what constitutes the sales price of a house, many different factors. One of those, of course, is gonna be competition in the marketplace and the supply of the product that people are trying to buy, single-family homes. So from our perspective at the Home Builders Association, the way to bring down prices is to add more supply into the marketplace. I think, um, you know, you might talk to housing advocates that come to this problem from all sorts of perspectives, but from the construction, residential construction industry a- and the economists that we talk to, the best way to get prices down is to add more supply. [0:40:44](https://vimeo.com/1163743260#t=2444s) So, um, w- there are several bills in front of the legislature this year that deal with this corporate investor issue specifically. Uh, I know one of those bills, at least on the Senate side, um, reflects a nuance that, that we've tried to describe over the past few years, which is, uh, for these corporate investors, uh, and the, um... There are business models that buy existing homes, which we've heard about today. There are other business models that build new homes to be held and managed for rent. [0:41:18](https://vimeo.com/1163743260#t=2478s) Um, those new homes are new rooftops in the marketplace. They might be getting a family out of, uh, an old apartment building and into a new single-family home on their way to homeownership. So, um, that is part of the supply-demand formula and, and our argument is that more rooftops is a good thing. So was glad to see that Senate bill, uh, at least continue that difference between, uh, the investors that are competing with Georgia families to buy existing homes and those that are putting new rooftops in the marketplace. [0:41:49](https://vimeo.com/1163743260#t=2509s) And I noticed, um, a few weeks ago when President Trump made his executive order on this topic, that he reflected that same difference in those business models and the effect that it might have on, um, on local families who are trying to buy a new home. So with that being said, love to stand for any questions, uh, but at the end of the day, uh, we'd love to engage and participate in the study committee. [0:42:09](https://vimeo.com/1163743260#t=2529s) Okay. Sure. Thank you for that information. And that, that report that you referenced, would you be able to get a copy of that? [0:42:15](https://vimeo.com/1163743260#t=2535s) Sure. [0:42:15](https://vimeo.com/1163743260#t=2535s) Maybe email- [0:42:16](https://vimeo.com/1163743260#t=2536s) Yeah, absolutely [0:42:16](https://vimeo.com/1163743260#t=2536s) ... to all of us, the members? I think that, that, uh, there's several of us who would probably like to, to see that, especially those of us that weren't- [0:42:23](https://vimeo.com/1163743260#t=2543s) Certainly [0:42:23](https://vimeo.com/1163743260#t=2543s) ... there, weren't here at that time. [0:42:24](https://vimeo.com/1163743260#t=2544s) Yes. [0:42:25](https://vimeo.com/1163743260#t=2545s) Appreciate that. You do have a question, Representative Chastain. [0:42:28](https://vimeo.com/1163743260#t=2548s) Thank you, and that's what I was gonna ask about the email for the, uh, report. But also, I've, I've heard this number thrown around a couple times now when we're talking about this, the 27%, 30%. [0:42:38](https://vimeo.com/1163743260#t=2558s) Yes. [0:42:39](https://vimeo.com/1163743260#t=2559s) What could we do to help? I mean, if I'm gonna build a $100,000 home and, and 30,000 of that's going to, is that, is that financing cost or is that more regulatory, you know, impact fee or what is that? [0:42:54](https://vimeo.com/1163743260#t=2574s) So the Georgia Public Policy Foundation did this study a few years ago, and impact fees are in the mix on the development side, the land development. But for the building side, they really just looked at changes to the building codes in the last 10 years. So the building codes were established decades ago, and they apply to all new construction. Um, those changes in the last 10 years that just add, you know, new, um, devices that manufacturers have brought to the code process, more insulation than maybe was required 10 years ago, that doesn't necessarily bring an ROI on your energy savings. [0:43:31](https://vimeo.com/1163743260#t=2611s) So those kinds of additions. Uh, and then there's all the delays that go along with the permitting and the carry cost on the financing that, that that incurs. Um, but, uh, since you let me talk about the, the committee report, the recommendations at the end of that committee, uh, were things like, um, loosening up local zoning restrictions- [0:43:51](https://vimeo.com/1163743260#t=2631s) Yes. Yeah [0:43:51](https://vimeo.com/1163743260#t=2631s) ... that make things more expensive and doing away with some of the aesthetic requirements that some local governments put on new housing that makes it more expensive than it needs to be. So there, there were some good ideas that came out of that study committee. [0:44:05](https://vimeo.com/1163743260#t=2645s) Thank you. [0:44:05](https://vimeo.com/1163743260#t=2645s) Thank you. [0:44:07](https://vimeo.com/1163743260#t=2647s) Thank you so much, Austin, for being here- [0:44:09](https://vimeo.com/1163743260#t=2649s) Thank you, Madam Chair [0:44:09](https://vimeo.com/1163743260#t=2649s) ... and, and for your support, and look, look forward to getting that report. And if we have any follow-up questions, um, could... If we have a lot of follow-up questions, could we have you come back in to talk about it sometime? Okay. Thank you. All right. Next, I've got our friend Betsy Bradfield with the Georgia Association of Realtors. [0:44:32](https://vimeo.com/1163743260#t=2672s) Thank you for being here today. [0:44:34](https://vimeo.com/1163743260#t=2674s) Yeah. Thanks for having me. Austin's much taller than me. Uh, my name is Betsy Bradfield. I'm with the Georgia Association of Realtors. Thanks to the committee for making time out of your day for this hearing, and thank you for Representative for, uh, working with me on this and having this idea and putting this pen to paper. So we have been... My association is made up of about 46,000 realtors statewide, and previously we've come to you as a body, and we've had a tough time on this institutional investor, um, conversation. [0:45:06](https://vimeo.com/1163743260#t=2706s) Because in Georgia, the way that the LLCs are structured is a mom-and-pop landlord who owns 10 houses is an LLC, the same way that one of these large mega corporations who owns 100 houses, sorry, 1,000 houses, is also an LLC So it is really difficult. We found it difficult to separate out mom-and-pops from institutional investors, but we're down here to represent and protect the mom-and-pop landlords, the people who live and work in your communities, who you know, who their i- their plan is to get a good tenant in and they wanna build generational wealth for their family and put down roots in your local community, right? [0:45:42](https://vimeo.com/1163743260#t=2742s) And they're a, they're a person, they're a family who lives down the street. You can go knock on their door if you have any problems. Those are, uh, my members. So that's who we're here to protect, and that's who we have been trying to navigate this process with. So last year you may have heard my, um, association come out in opposition to House Bill 555 from Representative McCollum, because caps in my opinion just won't work because a lot of these corporations have so much money and so many lawyers, they'll just split their LLC into two in order to get underneath that cap. And then it just really doesn't do what the intent of the bill was to do. [0:46:17](https://vimeo.com/1163743260#t=2777s) But he knows, we've had this conversation a ton of times, that we do want to do something because a regular, everyday Georgian can no longer compete. So I have some realtors who have first-time home buyer clients who have lost out on 10 plus offers for what we call a, um, starter home, which is anywhere depending on your community from 250 all the way to 325 now. Um, and our national association just released a study that found that the average age of a first-time home buyer in the United States is now 40 years old. So it is incredibly difficult to get into a starter home. [0:46:49](https://vimeo.com/1163743260#t=2809s) And when you think about your first house that you got, it was probably around 1,000 square feet. It was probably maybe a two-two, maybe a three-two, and you loved it very much. That's probably where you started your family, right? You got, just got it when you just got married, and that is, you have that emotional attachment to it. We're trying to protect that. We're starting, trying to protect starter homes and the ability for first-time home buyers to thrive in the State of Georgia. Um, as Representative Stinson said, if they can't buy a home in your community, they will leave. They'll go to the nearest community where they can actually afford to buy a home. And what that means is your doc- your nurses, your teachers, your police officers, they're gonna be on the road. [0:47:24](https://vimeo.com/1163743260#t=2844s) They're driving, sitting in traffic, creating congestion because they can't afford to live in your community. They have to live three counties over and drive to protect you in the community where you live in. So we're all about trying to get housing more affordable. We've actually begun to call it housing accessibility, because it, houses are not accessible to Georgians any longer. Everyday Georgians can no longer compete. So we are just trying to level that playing field again, which is what we started last year with House Bill 399, which is where we required these out-of-state landlords to have in-state property managers, because all property managers in Georgia are licensed by the Real Estate Commission and have been for a very long time. [0:48:01](https://vimeo.com/1163743260#t=2881s) So that was our first bite at the apple. And then our second bite at the apple is similar to, uh, Representative Olaleye's plan, and also similar to McCollum's plan about the taxation structure. 'Cause we are against caps, we are against bans, but we could get behind and would happily work behind some sort of tax incentive structure where we protect mom-and-pop landlords, but level the playing field and say to some of the larger investors, "We're not saying that you can't operate in the State of Georgia. We're just saying that you're gonna have to pay a little bit more in order to keep doing what you're doing." And I think the first conversa- the first worry for a lot of elected officials about the tax structure is, well, they'll just pass on the rent increase, uh, the tax increase to the tenant via rent. [0:48:43](https://vimeo.com/1163743260#t=2923s) There is an appraisal method called the income approach. All real estate appraisers, commercial and residential, are aware of it, and tax assessors. It's done mostly in the commercial market. It means that the appraiser values the property based on not the cost, not how much it could sell for, what they think it's worth, but how much the income is generated from that income-generating property. So if they measure these, uh, properties through the income approach, that would say if you raised your rent $10 in order to cover your new tax increase, that essentially you would be raising your income through your rent, so you'd just be shooting yourself in the foot. [0:49:18](https://vimeo.com/1163743260#t=2958s) Because as you raise your rent to accommodate your taxes, we will also raise, uh, what we're appraised at. So that is our solution for the passing on the cost through the rent. Uh, but we're happy to discuss more. We did, my team did a really extensive study on this because I know there's been a ton of studies, a ton of, um, uh, professors who have worked on this issue. Our fear from the way that Georgia's LLC structure is that there may be a chance that mom-and-pops are included in the, in that LLC study, right? And so my team was very careful. [0:49:50](https://vimeo.com/1163743260#t=2990s) If we even had an inkling that someone was an LLC, I threw it out. I didn't want it to even come close to, um, to polluting the study. So my team did a really in-depth... We'd ha- be happy to share it with the committee. Um, they're not in a ton of rural counties yet. That doesn't mean that they're not coming. They are in Effingham County, and they are moving to some, uh, you know, around Chatham. They are moving to a lot of the coastal communities. So as the port continues to, um, grow, there is a high chance that they could continue to, to grab up some of those homes around the port. [0:50:21](https://vimeo.com/1163743260#t=3021s) Um, they are in North Georgia. They are in the Augusta area. Um, they're in the Columbus area, which is where I am from. So they are continuing to pop up just where it is feasible in the marketplace, and, uh, I'm happy to share that data with you, Chairman, uh, Chairwoman rather, to, uh, help you to share that with your committee. [0:50:37](https://vimeo.com/1163743260#t=3037s) Sure. That- [0:50:38](https://vimeo.com/1163743260#t=3038s) In Fort Ben- they in Fort Benning too? [0:50:40](https://vimeo.com/1163743260#t=3040s) Yes. [0:50:40](https://vimeo.com/1163743260#t=3040s) Oh. [0:50:40](https://vimeo.com/1163743260#t=3040s) They're everywhere. And w- we would love to see that information. [0:50:42](https://vimeo.com/1163743260#t=3042s) Yeah. [0:50:42](https://vimeo.com/1163743260#t=3042s) You do have a couple of questions. [0:50:44](https://vimeo.com/1163743260#t=3044s) Yes, ma'am. [0:50:45](https://vimeo.com/1163743260#t=3045s) We will start with Representative Cameron. [0:50:48](https://vimeo.com/1163743260#t=3048s) Thank you, Madam Chairman. Betsy, how is this affecting realtors in general? I would imagine this takes inventory out and, I mean, are we seeing a decrease in realtor activity? [0:51:02](https://vimeo.com/1163743260#t=3062s) So you're seeing a decrease, but I, I can't say that it's tied to this. It's mostly just tied to the market right now, um, which is not the best because of interest rates, which, you know, I wish that you guys could do something about, but that's the feds. Um, so I, I don't know if it, it's directly tied to this. I do know that some of them when they sell off some of these properties to become, to go back into the fee simple market, they do use realtors. They do now use property managers here in the State of Georgia. Some of them have always done it. Some of the bad actors have come on board and become good actors by using our property managers, and those individuals are real estate licensees. [0:51:38](https://vimeo.com/1163743260#t=3098s) So... [0:51:40](https://vimeo.com/1163743260#t=3100s) Representative O'Steen. [0:51:42](https://vimeo.com/1163743260#t=3102s) Thank you, Chair Leake. Am I hearing you correctly, Betsy, in that maybe we need to look at the way the LLC structure is for these homes? Is that, is that what I'm hear- Because you keep going back to that, the way our LLC structure is, that the, the 10-home mom-and-pop organization is, you're trying to figure out how to differentiate between those that own a thousand. [0:52:08](https://vimeo.com/1163743260#t=3128s) It's, it's difficult. So if you go in, so my team analyzed CRS data, which is, like, courthouse records, deed records, everything, tax records. When you go in, uh, it can look like 123 Main Street, right? I can name my LLC pretty much whatever I want. And it's, you go up the chain for ownership, right? Sometimes it's very clear. The authorized person on the LLC says Angie O'Steen, right? And I know that's Angie O'Steen. But if it says 123 Main Street and the authorized person is, um, Bob Smith LLC, then I have to go figure out who owns Bob Smith LLC, and then I have to go figure out who owns this LLC that owns Bob Smith LLC. [0:52:45](https://vimeo.com/1163743260#t=3165s) So it can be a really long, convoluted process. There are plenty of good actors who are very upfront about who owns and operates that LLC, right? That's, I'm not gonna paint with a broad brush. But there are some where it is really hard to find. And when you go and look at some of these institutional investors to figure out who owns who, it's like, um, SFR, which is single family rental, uh, S- and it's, like, two. SFR Rental 3, SFR Rental 4. And so it's got these crazy names, but they're all under one parent company. [0:53:17](https://vimeo.com/1163743260#t=3197s) My, um, company, m- the Georgia Association of Realtors, my staff did a really good job trying to link as many as possible, but there's no way I found them all. There's simply no way because of the, the way that we're set up. So, um, I'm not sure, to be completely honest, if other states have undergone this sort of change into the corporate structure, or if that's even something that the, that you guys would be open and willing to do. Um, but it would probably help figure out who is, um, holding these LLCs. But I'm certain that there is a reason why it is 2026 and we have not done it. [0:53:51](https://vimeo.com/1163743260#t=3231s) Right. They're circumventing the process somehow. I thank you so much. [0:53:55](https://vimeo.com/1163743260#t=3235s) You're welcome. [0:53:57](https://vimeo.com/1163743260#t=3237s) Interesting. We have no other questions for you, Betsy. [0:54:01](https://vimeo.com/1163743260#t=3241s) Thank you all. [0:54:01](https://vimeo.com/1163743260#t=3241s) But thank you so much for being here- [0:54:02](https://vimeo.com/1163743260#t=3242s) Yep, absolutely [0:54:02](https://vimeo.com/1163743260#t=3242s) ... and look forward to talking to you about this further. Okay, we have one more, one last person who's signed up to speak, and that is Michelle Johnson with the Greater Red Oak Chamber of Commerce. [0:54:21](https://vimeo.com/1163743260#t=3261s) Thank you, Michelle. [0:54:25](https://vimeo.com/1163743260#t=3265s) Good evening, and thank you for having us today. Um, before I say anything about this, um, housing issue, I just wanna thank you for your efforts in addressing the challenges and opportunities in, in rural Georgia. And I'm here today, um, because, you know, I've heard the question, "Is this really a rural issue?" And so for the folks that don't know, Toombs County is basically right between Macon and Savannah. [0:54:56](https://vimeo.com/1163743260#t=3296s) There's tons of growth going on, of course, at the coast. It's coming our way. In Toombs, we've done the housing studies. We're looking at our zoning, um, in the cities. We're, you know, we're doing what we can. We still don't have a handle on it for all the reasons we talked about, um, housing shortages and, um, high prices and geographic shifts and the economy. And all of those are big issues, but that stuff is coming our way. [0:55:30](https://vimeo.com/1163743260#t=3330s) And as we're trying to put together our own plan, if there are lessons to be learned from communities that have already been through some of those issues, we sure would like the opportunity to get ahead of it before it becomes an issue for us. So, um, that's my perspective and why I think this very well could be a rural issue, and we are very much in favor of it. [0:55:56](https://vimeo.com/1163743260#t=3356s) Mm-hmm. All right. [0:55:57](https://vimeo.com/1163743260#t=3357s) Thank you. [0:55:58](https://vimeo.com/1163743260#t=3358s) Don't walk away yet because, um... Representative Jackson, did you have a question for her? [0:56:02](https://vimeo.com/1163743260#t=3362s) Oh, just a comment. [0:56:03](https://vimeo.com/1163743260#t=3363s) Okay. [0:56:03](https://vimeo.com/1163743260#t=3363s) Thank you, Madam Chair. Um, welcome to the Capitol. I'm from Sandersville. [0:56:07](https://vimeo.com/1163743260#t=3367s) Okay. Yes, sir. [0:56:08](https://vimeo.com/1163743260#t=3368s) I know where Vidalia is. Visited there a lot. Uh, Julia Musgrove used to be my supervisor. [0:56:13](https://vimeo.com/1163743260#t=3373s) Okay. Yes. [0:56:14](https://vimeo.com/1163743260#t=3374s) Um, in Vidalia. So I've been there a lot. But, um, a- and Sandersville, I represent, uh, rural, rural communities. I represent Hancock County, um, Warren County, Glascock County, Washington County, a portion of McDuffie, and a portion of Baldwin. And Baldwin and McDuffie would probably be the more ones that we would wanna look at. But Hancock County need housing. [0:56:37](https://vimeo.com/1163743260#t=3397s) Mm-hmm. [0:56:38](https://vimeo.com/1163743260#t=3398s) Uh, we've got a, a community called Mayfield, Georgia, where there's a community of houses that's, it was built in the '60s, and there's been no upkeep on those houses, and people are living in deplorable conditions- [0:56:51](https://vimeo.com/1163743260#t=3411s) Mm-hmm [0:56:51](https://vimeo.com/1163743260#t=3411s) ... in those communities. Uh, and while I, I, I welcome, um, representatives, a study committee, and would really like to look at it and be on it, but how do we, how do we bring economic development to our rural, rural areas? Uh, we have a lack of housing. We have a lack of jobs in rural communities. If you've ever driven through Sparta, Georgia, you see the boarded-up storefronts, uh, right downtown in Sparta. Um, there's been no new industry. [0:57:21](https://vimeo.com/1163743260#t=3441s) Don't have a hospital in Hancock County. We don't have a hospital in Glascock County, and a couple more communities like that. And while I understand what you're saying about the big corporations coming in and buying up houses, we still welcome any development- [0:57:39](https://vimeo.com/1163743260#t=3459s) Mm-hmm [0:57:39](https://vimeo.com/1163743260#t=3459s) ... in rural communities in rural Georgia. But thank you for your comments. [0:57:43](https://vimeo.com/1163743260#t=3463s) Mm-hmm. [0:57:43](https://vimeo.com/1163743260#t=3463s) And welcome. [0:57:43](https://vimeo.com/1163743260#t=3463s) And yes, sir, I would, I would add that we, we have the same issue. We, we do need housing, obviously. Um, and you know, housing is for everyone, and it is definitely critical to create a resilient community, and it is an economic development issue. But, um, as with a lot of other things, I do think there can be some predatory practices. And as much as we welcome it, we want to be wary of just being so eager to get something that we settle for something that in the long run is gonna hurt us. [0:58:20](https://vimeo.com/1163743260#t=3500s) So that's really why I'm interested in this. [0:58:23](https://vimeo.com/1163743260#t=3503s) Thank you. [0:58:23](https://vimeo.com/1163743260#t=3503s) Thank you. [0:58:25](https://vimeo.com/1163743260#t=3505s) Thank you, Michelle. Well, that is our last speaker. Does anybody on the committee have anything else they wanna add for today, or any question that you, or concerns about the resolution you might wanna address towards Representative Olaleye at this time? All right. Well, seeing none, thank you for presenting and look forward to talking to you about it further- [0:58:48](https://vimeo.com/1163743260#t=3528s) Appreciate it [0:58:48](https://vimeo.com/1163743260#t=3528s) ... as we go along the process. [0:58:49](https://vimeo.com/1163743260#t=3529s) Thank you. [0:58:50](https://vimeo.com/1163743260#t=3530s) Thank you. Meeting adjourned.