Missouri Northeast Brings Rural Priorities to Jefferson City for Annual Advocacy Days
January 31, 2025 – Jefferson City, MO
Missouri Northeast, a coalition of economic development organizations, regional planning commissions, and utility providers representing the 15 northeastern-most counties of Missouri, gathered in Jefferson City this week for their annual "Missouri Northeast Days" at the State Capitol.
Held on Tuesday and Wednesday, the event provided an opportunity for Missouri Northeast leaders to engage directly with state legislators, the Governor’s office, and the Lt. Governor’s office to advocate for policies supporting economic growth and rural development. In addition to meetings with state leaders at the Capitol, Missouri Northeast hosted a reception and dinner on Tuesday evening, bringing together both state and federal legislators and staff.
One of the key issues discussed during this year’s advocacy efforts was the urgent need for workforce housing in rural Missouri. Workforce housing is often constrained by a gap in the housing market, where there is access to low-income housing options and high-value homes, but limited availability of housing that meets the needs of middle-income workers. In Northeast Missouri, the typical price range for workforce housing is between $180,000 and $250,000. These homes are affordable to middle-income workers—such as teachers, nurses, police officers, and retail employees—who earn too much to qualify for traditional affordable housing subsidies but may struggle to afford market-rate housing in their communities.
Missouri Northeast leaders emphasized their support for House Bill 240 and House Bill 245, which aim to address workforce housing shortages in cities with populations under 75,000. These bills propose two solutions:
- A Workforce Housing Tax Credit to property developers who create rental or owner-occupied housing that is affordable to moderate-income individuals and families. The tax credits serve as a financial incentive for developers to invest in workforce housing. This tax credit is modeled after Iowa's Workforce Housing Tax Credit program, which has successfully incentivized the development of affordable housing options for middle-income workers in rural communities.
- A Rural Workforce Housing Fund, which will provide competitive matching grants to non-profit organizations who administer workforce housing investment funds for the development of homes in rural areas. This housing fund is modeled after Nebraska's Rural Workforce Housing Fund established in 2017.
Missouri Northeast is particularly well suited to advocate for workforce housing because local organizations have already come together to establish a workforce housing revolving fund. This initiative, known as Housing Enhancement Northeast, was launched through a partnership between the Northeast Missouri Regional Planning Commission, Tri-County Electric Cooperative, and Northeast Power. The revolving fund is utilized to develop and sell workforce housing at cost throughout the Northeast Missouri RPC region. By spring 2025, the program will have six developments underway at any given time, with a goal of building 12 homes per year. This effort has been made possible through a combination of public and private funding sources, including $240,000 from rural electric cooperatives, $800,000 from the regional planning commission, and a $1 million allocation from the Missouri legislature. The bills discussed during Missouri Northeast Days would expand this model statewide, helping more rural communities address their workforce housing challenges.
Workforce Housing Funds are not intended to compete with private developers but rather to create opportunities for nonprofits to collaborate with private developers. By covering the construction costs of workforce housing, the revolving fund allows nonprofit organizations to work with experienced home builders to construct homes more affordably, ensuring that housing remains accessible while leveraging private sector expertise.
With workforce housing playing a crucial role in economic development, Missouri Northeast leaders stressed that these legislative measures would help rural communities attract and retain employees, strengthen local economies, and ensure sustainable growth.
Missouri Northeast remains committed to advocating for policies that promote rural economic vitality, infrastructure improvements, and workforce development. For more information about Missouri Northeast or this year’s advocacy efforts, please visit the Missouri Northeast Legislative Priorities page, https://www.missourinortheast.