A Senate committee heard testimony Wednesday about how rural housing is tied to economic development in three southern tier counties.

The Senate Republican Policy Committee met in Fayette County amid a growing focus in Harrisburg on housing availability and affordability.

The hearing offered a window into housing issues in rural parts of Pennsylvania.

The hearing provided Republican senators an opportunity to respond to Gov. Josh Shapiro’s housing action plan unveiled last week.

Referring to Shapiro’s proposal, Committee Chair David Argall, R-Schuylkill, said it’s very good when everyone recognizes a real problem exists even though there may be differences on addressing it.

State Sen. Pat Stefano, R-Fayette, said housing issues are linked to economic, workforce and quality of life issues.

Stefano and other Republican senators are drafting a package of housing bills.

Shapiro proposed creating a $1 billion bond-financed state development fund to help pay for housing and energy projects and upgrading local government buildings. He also called for easing regulations.

Fayette County Commissioner Scott Dunn and other officials said companies look at available housing as part of their investment decision.

But median prices for a family home are too high and occupancy of rental units is at 99% in Fayette County, he said.

“Fayette County has an immediate need for approximately 3,000 housing units, both for ownership and rental, across all price points,” said Dunn. “By simply increasing the stock of affordable housing, the county could begin to rebuild its population and enhance our workforce.”

He suggested enabling municipalities to secure bond financing to cover a builder’s infrastructure costs through Tax Increment Financing and creating a state program to finance residential infrastructure development.

Phyllis Chamberlain, executive director of the Housing Alliance of Pennsylvania, urged lawmakers to expand the state PHARE program to add housing, appropriate $50 million for a proposed PA Home Preservation Grant Program and reform zoning codes.

“Updating zoning codes can remove unnecessary obstacles, allow for a wider mix of housing types, and reduce the time and expense of bringing new homes to market,” she said.

“Housing is not failing because there is no interest in building it,” said Robert Sleighter, president of an architectural firm. “It is failing because the process is too long, too expensive, and too uncertain.”

He called for use of state-drafted zoning models and creating partnerships with state and local sources to reduce upfront housing costs.

Dana Kendrick, manager of business, community and economic operations for an engineering firm, emphasized housing goes hand in hand with workforce development and economic growth, and the commonwealth must look at investing in attainable housing options. She noted, “if we want to compete for businesses, retain employers and reverse population loss in communities like Fayette County, we must invest in housing that is available, attainable, sustainable and integrated into strong communities.”

Housing shortages can stall economic growth, said Jen Marsh, president and CEO of the Bedford County Development Association.

“Employers are not asking for tax incentives or subsidies,” Marsh said. “They are asking for housing so their workforce can live near their jobs.”