Advancing Homeownership At A price Minnesotans Can Afford

#BuildingCommunity #Affordability #MNHomeownership

Improve Transparency and Efficiency in Government Decision-Making:

Rulemaking Review Legislation

 

Background

The regulatory costs associated with new construction have surged over the past decade. We know that we need regulations to ensure safety and durability in new home construction, but the regulatory structure must meet these objectives at a price that families can afford.

Issue

The cost of complying with local and state government regulations negatively affects the affordability of housing.  Every mandate, fee, and project delay represents a real cost that is passed on to home buyers. 

Some of the challenges faced by home buyers include:

·       Homebuyer Access – In Minnesota, for every $1,000 increase in the price of a home, about 4,000 households are priced out of the market for a median-priced new home.

·       Regulatory Costs Have Soared – National estimates show that, on average, regulations imposed by government at all levels account for nearly 25% of the final pricepoint of a home.

·       Affordability Gets Lost in Regulatory Process –Well-intentioned policy work in the various state agencies aims meet regulatory goals, but too often it misses the equally important goal of minimizing cost impacts for homeowners.

·       Homeownership is less Attainable for too Many – The homeownership rate is at decades-low levels both in Minnesota and nationally. Greater affordability in all homes means more homeownership for all. 

Bill Summary

HF 1001-Rep. Vogel/SF 745-Sen. Kiffmeyer would allow for the legislative committee with jurisdiction to review rulemaking proposals which would impact an individual homeowner costs to purchase or remodel a home by $1,000 or more.

Key features of the bill include:

·       Provides a legislative mechanism to review regulatory rule proposals to review the cost impacts and balance affordability with the proposed regulation.

·       If a committee of either the House of Representatives or senate with jurisdiction over the subject matter of the proposed rule votes to advise an agency that the rule should not be adopted as proposed, the agency may not adopt the rule unless the rule is approved by a law enacted after the vote of the committee.

·       The agency may proceed with other elements of the rule that are not related to the portions under review by the committee for cost-benefit analysis. 

Issue specifics and bill language are subject to change.*