EPA Administrator, Builders Talk Stormwater Enforcement by NAHB Now Builders and developers say that federal regulations designed to keep sediment out of local waterways have instead ended up in mountains of paperwork and confusion as to what constitutes a violation and what doesn’t. NAHB members met with Environmental Protection Agency (EPA) Administrator Scott Pruitt to relay this message and talk about solutions. In a meeting with top enforcement officials from EPA’s 10 regions, NAHB members suggested several ways EPA could improve the process. Specifically, NAHB is looking for: A simplified permit process for small lots. NAHB worked with EPA to develop a compliance template for single-family homes in large subdivisions that could also serve as a streamlined permit. Concise and easier to understand, it will foster higher rates of compliance among these low-risk sites NAHB said. A “find it, fix it” approach. NAHB builders and HBA staff urged Pruitt to fundamentally reform EPA’s stormwater enforcement process, starting with missed opportunities to educate, rather than penalize, firsttime violators during site visits. EPA inspectors should identify minor infractions to be corrected immediately or within a specific period of time without threat of further enforcement — provided, of course, that those violations don’t result in environmental harm. “We need an improved, two-step process that starts with education, and saves priority targeting for repeat bad actors,” said NAHB second vice chair Greg Ugalde, who helped facilitate the meeting. Better coordination among regulators. Multiple visits from local, state and federal inspectors to the same site can result in very different observations and citations. As EPA seeks to restore the balance between compliance assistance and enforcement, NAHB believes states, not EPA, should play the lead role in targeting and initiating enforcement activities. Continued participation in EPA’s “Smart Sectors” Program. Home builders were invited to participate this business community partnership to develop sensible regulations while protecting the environment and public health. NAHB members were pleased at EPA’s response. “I am thankful for the opportunity EPA leadership and staff provided us today to start a dialogue – they really listened to our suggestions for how the agency could use enforcement visits as an opportunity to educate, rather than penalize those working to comply in good faith,” said Joseph Pietruszynski, vice president of land development for Hubbell Realty Co. in West Des Moines, Iowa. “We heard from builders who never received word from EPA until four, six months after site visits on how to solve simple problems in the field. I think we really got the message across that there should be a better path for those of us willing to fix issues right away.” For additional information, contact Eva Birk at 800-3685242 x8124. For stormwater management resources, visit the NAHB Stormwater Toolkit. Labor and Material Costs Rising Faster Than Lot Prices by NAHB Now Despite the record-high prices for single-family lots, the average portion of the final sales price of a new singlefamily home attributed to the cost of the lot is actually decreasing. In the years leading up to the recession, average lot values accounted for around 20% of the sales price of a home. Since 2009, that number has steadily declined, dropping to 17% in 2016. At first, that might sound like good news. But as NAHB economist Natalia Siniavskaia points out in a recent Eye On Housing blog post, it’s largely due to the rising prices of labor and materials, which are outpacing the increasing cost of lots. “As prices continue to rise for lots, labor and materials, the shares of those costs will change from year to year,” said NAHB Chief Economist Robert Dietz. “The challenge for builders is managing development costs, including burdensome regulatory costs, while building an affordable product, especially as interest rates rise in the years ahead.” Affordability remains a big concern for the housing industry. However, the rising prices don’t appear to be scaring away most buyers just yet. While inventory of existing homes continues to be limited, year-to-date new home sales have surged to a 10-year high. 15 For additional analysis, go to eyeonhousing.org.
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