On March 4, Executive Director Michael Sanderson testified before the Environment and Transportation Committee in opposition to HB 1444 – Local Government – Moderate Income Housing Unit Requirements – Prohibition Against Fee-in-Lieu.
This bill prohibits counties and municipalities from authorizing a fee-in-lieu of moderate-income housing requirements in new residential development projects.
Mr. Sanderson said, “our concern with the bill is basically a matter of baby and bathwater… we believe that the fee-in-lieu can help jurisdictions to target their funds where they can serve the most people most effectively.”
“We typically ask for tools in the local toolbox… but this bill takes one away,” he continued.
Some counties use fee-in-lieu payments to fund large-scale, highimpact affordable housing projects in targeted areas rather than requiring small, scattered units within market-rate developments. By eliminating this option, the bill removes a funding stream that supports strategic, well-planned housing investments. Forcing moderate-income units into every development without alternatives could slow or discourage new housing construction, particularly in areas where infrastructure, financing, or market conditions make inclusionary zoning infeasible.
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