The committee oversees such issues as city and county government organization and financing, land use and redevelopment, and economic development.
Price served on the committee during the last term, and was appointed to the chairmanship by House Speaker Jase Bolger.
"Serving as the chair of this committee is an invaluable opportunity to help make local government more efficient and effective for the public," Price said. "I look forward to working with local leaders, and plan to take their ideas and concerns to Lansing to deliver common-sense solutions that will improve the quality of life for all residents of Michigan."
Price will also serve on the state House education, energy and technology, and judiciary committees, as well as the Joint Committee on Administrative Rules.