The Builders Association of the Twin Cities published the 2012 Legislative Review. In this review BATC outlines key legislative issues impacting the housing industry:
- Fire Sprinkler Mandate Prohibition
- Land Use – Moratoria, Development Contracts, Park Fees
- DLI Housekeeping – Subcontractor Registration
- Contractor Recovery Fund
- Environmental Permitting
- Met Council Staggered Terms
- Tax Bill
- Civil Justice Reforms
- Vote Report
The 2 key issues I am concerned about is the Fire Sprinkler Mandate and the Land-Use Moratoria.
Regulations continue to pile on housing and add additional unnecessary costs to homeowners. These become “hidden” costs and put stress on home-ownership. Most of these hidden fees are buried into the development of the land, however a mandate to require Sprinkler Systems into homes is an overt and very expensive fee. Adding Sprinkler Systems into homes is unnecessary and can add thousands of dollars to construction costs, ultimately putting new home-ownership out of reach of many people.
Today, the homeowner purchasing a new single family home priced at $250,000 is spending on average $62,500 on regulatory costs – NAHB Regulatory Cost Study. The growing regulatory footprint and associated costs are not only unfair, they are unsustainable and further threaten the housing market in Minnesota. Of the 25 percent-plus of the final price point of a home attributable to regulation, the vast majority of costs occur during the development process. This measure proposed reasonable reforms to create greater efficiency in the land use approval and regulatory processes.