As Mayor of Mobile, I have seen firsthand the challenges Alabama faces in attracting and retaining a talented workforce. Local businesses are eager to expand and others are interested in coming to Alabama. But our state's severe affordable housing shortage often gets in the way.

In the Mobile area alone, 6,362 new jobs are expected to be created over the next five years. These new employees will need housing, preferably within our community, but rising home prices and rents make it difficult to find affordable options. Interest rates also continue to reduce purchasing power for most families. In coastal areas like ours, the increasing cost of home insurance due to wind also plays a compounding factor. However, this is not just a Mobile issue; it is a statewide issue that is stifling economic growth across Alabama.

A lack of workforce housing (safe, affordable housing for working families) discourages people from joining the workforce or relocating for work. Housing is the largest expense for most families, and when it becomes a major burden, career decisions can become that much more complicated. Thankfully, a solution is on the way.

Rep. Cynthia Almond of Tuscaloosa and Sen. Chris Elliott of Josephine have introduced the Workforce Housing Tax Credit, a tax credit that, if passed, would encourage the development of affordable housing units, especially for working-class families, which is why the bill has bipartisan support.

The core of this program is leveraging the existing federal Low Income Housing Tax Credit (LIHTC) program. By providing additional state tax credits, Alabama can leverage untapped federal resources and drive additional private investment. This makes workforce housing projects economically viable for more developers and maximizes the impact of public resources by attracting private capital.

Here's how the program works: State tax credits are offered to investors in multifamily developments who commit to capping rents at 30 percent of qualifying income for working-class households. This tax rate is set by 60 percent of the area median income. To receive federal and state tax credits, private investors put capital into these important projects. Regular mortgage financing is also used. Think of this as a partnership: the state and federal governments provide tax incentives, and developers invest in much-needed affordable housing.

This program is designed for accountability and efficiency. There is no need to add additional bureaucracy because the administration is already in place. The Alabama Housing Finance Authority (AHFA) already administers federal tax credits and is the best agency to administer this effort. Additionally, the program will end after the pilot period, ensuring that its effectiveness can be evaluated before the state makes a long-term commitment. This should be an easy decision for Alabama.

The benefits are undeniable. Economic impact studies show that every dollar invested by the state generates a $7.30 gain in economic activity. That equates to more than 3,100 new jobs and $1.1 billion in economic growth spurred by the development of much-needed workforce housing. Early projections suggest that the program will generate up to 2,500 new or renovated homes across Alabama, directly addressing the workforce housing shortage. Twenty-nine other states have adopted similar programs, including Georgia, South Carolina and Texas. Our state should be next.

This isn't about numbers, it's about people – about families being able to afford to live near good jobs so they can contribute to their communities and build brighter futures for themselves. Working together, we can create a vibrant Alabama where businesses can thrive and workers have the housing they need to succeed.

I commend Governor Ivey, Lt. Governor Ainsworth, Speaker Pro Tempore Reed, and Speaker Ledbetter for their joint leadership in providing solutions to Alabama's workforce issues. Let's come together and support the Workforce Housing Tax Credit Act, which is a responsible investment in Alabama's future.

Now is the time to build more workforce housing and support the workforce our state desperately needs.

Sandy Stimpson has served as mayor of Mobile, Alabama since 2013.