Residential Associations Give Government A 32-Item List Of How To Fix Housing Regulations

The National Multifamily Housing Council and National Apartment Association have been telling the federal government for years that regulation is making housing development too difficult and too expensive.

Now they have specific marching orders for the Trump administration. 

The associations sent a letter to the White House Tuesday asking the government to review 32 federal rules, regulations and programs at 10 agencies to make housing production easier.

The letter said building is being hit by roadblocks because "federal regulations strayed from their intended purpose."

Regulation imposed by the government accounts for 40.6% of multifamily building costs, according to a report from the NMHC and National Association of Home Builders, and NAHB found regulations make up 24% of the price of a new single-family home build. 

"Significant increases in insurance costs, sales and property taxes, payroll costs and other expenses have hampered our ability to deliver the housing America needs," the letter states.

Construction and energy representatives presented to the Senate’s Committee on Environment & Public Works on Feb. 19 as part of its focus on modernizing federal permitting without compromising environmental responsibility.

One policy highlighted by the letter and during the hearing was the Clean Water Act. It is unclear what parts of land require a federal wetland permit under the CWA because what qualifies as "waters of the United States" and thus falls under the act’s jurisdiction remains uncertain. Getting an answer from the government can take over a year, NAHB Chairman Carl Harris said at the hearing. The definition is tied up in litigation.

Housing developers have been forced to step away from specific areas because of unclear permit policies, he said. 

National Environmental Protection Agency reviews, permits and litigation also drive up costs and cause project delays, Leah Pilconis, the Associated General Contractors of America's general counsel, said at the hearing.

The letter also asks the Department of Housing and Urban Development to reform and review the Section 8 Housing Voucher Program, which President Donald Trump has proposed cutting. The letter says the program’s success is hindered by barriers that don’t incentivize the private sector’s participation. 

Additionally, it asks HUD to rescind its guidance on using AI tools to promote efficiency throughout the tenant screening and leasing process, saying it "unduly restricts their use." It asks for new guidance that allows for responsible adoption in the housing process.

The organizations also requested a revision to the Treasury Department's TD 9992 ruling, which defines what qualifies as a domestic investment vehicle. NMHC and NAA disagree with the regulation because they said it stops foreign multifamily investment when all capital is needed to solve the housing crisis.