e-Right Angle, January 2017

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January 13, 2017

Government over-regulation continues to harm the housing industry and potential homeowners looking for moderately priced homes.  In May 2016, the National Association of Home Builders ("NAHB") outlined a recent internal study that showed, nationally, that government regulations account for 24.3% of the final cost of a new single-family home.  Nearly a quarter of the costs associated with the building of a new single-family home are tied to government over-regulation, including delays in development, impact fees, taxes and burdensome red-tape.  According to the NAHB Study, on a $350,000 single-family home, government regulations account for, on average, nearly $85,000 of the total home cost.  Even more alarming is that this total is a nearly 30% increase over a similar study conducted five-years prior, in 2011.
Locally, in Dane County, we continue to see fees piled on at every turn.  A recent example occurred in Fall 2016, when the City of Madison Common Council enacted an increase to Park Impact Fees despite Park Impact Fee revenues exceeding projections by over 100% in both 2014 and 2015.  The continued response from municipal staff and elected officials is that the increases are nominal; however, when these "nominal" increases occur annually from multiple sources, the costs start to run rampant.  A 30% increase, over a five-year period, in costs due to government regulation is not nominal!
The Madison Area Builders Association (MABA), in conjunction with our allies, will be on the front line, working to stave off additional government regulation and fee increases, but we need your help!  Become more involved in the Government Affairs Committee by attending our monthly meetings or by keeping the MABA staff and Government Affairs Executive Team apprised of any issues you encounter in the field.  As we continue to expand our influence in Dane County and beyond, our need for great volunteers expands too.
Looking to get involved?
Chad Lawler, Director of Government Affairs & Advocacy
(608) 288-1135