State lawmakers are looking more closely, after a report found some Twin Cities municipalities are jacking-up charges for building permits beyond what their costs are. Republican Representative Jim Nash from Waconia says for every thousand dollars over-and-above that’s charged for building permits, about four thousand potential buyers are knocked out of the housing market: “If we’re trying to promote housing affordability, if we’re trying to give people the American Dream, that’s not exactly a good way to do it,” he says.
Nash says under state rules, cities can only “pass through” their costs on building permits — not charge more. But Irene Kao (GOW) with the League of Minnesota Cities responds that regulation refers to *other* municipal fees. She says for building permits, “it’s based on the value of the land, the valuation, and that’s how it’s done, and that’s according to state rules.”
Representative Nash says he’s preparing legislation to address the problem.