Your state association goes to bat for the building industry on a number of precedent-setting legal battles. It also advocates for individual members when they are facing challenges that delay projects or needlessly increase the cost of doing business. If you are facing a local utility or other challenge or you feel a governmental jurisdiction is asking you to do something that doesn’t seem right, check with us. If we can help, we will. At a minimum, we will likely be able to offer some guidance and advice. Here’s a quick rundown on HBAM’s recent legal and squeaky wheel cases:

Troy Appeals HBAM Permit Fee Overcharge Lawsuit Victory—this precedent setting case will eventually help us reign in local permit fees. By state law, a local building department can only charge fees that cover the costs of operating their department. Fees can’t be used for other governmental expenses. After 14 years of battle and foot dragging tactics by the city, last fall a state court of appeals panel ruled unanimously in our favor, saying the City of Troy’s fees were excessive and that they needed to repay our legal fees. Knowing that they will have to pay us some $600,000 or more, the city appealed this decision to the Michigan Supreme Court. The court has not yet decided if it will hear the appeal. The Supreme Court has ruled in our favor twice already in this case and it is our hope that they will choose to not hear the appeal (allowing the COA decision to stand). When our legal fees are returned, we will turn to other communities across the state that we know have been collecting excessive permit fees, pointing to this decision and advising them to restructure their fees or face potential litigation from us.

Preserving the Michigan Consumer Protection Act (MCPA) Exemption for Licensed Builders—in another precedent-setting case, we have intervened in a case brought to the Michigan Supreme Court by the Attorney General. In short, the AG is asking the court to reverse decades of legal precedent by taking away licensed company’s exemption from the MCPA. This could result in builders facing punitive damages allowed under the MCPA, should a court rule in favor of a homeowner. HBAM joined other business associations in filing an amicus brief in this case. Stay tuned for further updates. If the court rules in the AG’s favor, there will be a concerted effort to pass legislation reinstating exemptions for licensed industries.

Challenging Fruitland Township Illegal Fire Sprinkler Requirements—earlier this year a member brought our attention to the fact that this coastal community near Lake Michigan is requiring sprinklers in residential homes. A cease-and-desist letter was sent to them by our attorney in late February. While there has been some communication back and forth with township officials, we are still awaiting an official confirmation that they will cease this practice.

Investigating Unjustified Owosso Water Tap-in Fee Increase—late last year this community doubled water and sewer tap-in fees. After being notified of this action by an HBA member, your state association filed a Freedom of Information Act (FOIA) request to see how these new rates were determined. The city, in response to our FOIA request, admitted that they had no study or analysis done before pushing this increase through. Adjacent communities have fees that are less than half the cost now being charged in Owosso. We are currently awaiting an official response from their city attorney on whether they intend to lower/correct their fee schedule.

Questioning Stair Geometry Requirements for Dune Stairways in Grand Haven Township—this township has been notorious for overly burdensome code enforcement actions. Multiple inspections and re-inspections are the norm in this community. They’ve recently gone one step further in requesting permits and fees for the installation (or repair) of dune staircases. Not having an ordinance dictating any rules for such work, the building department cited the stair geometry requirements in the Michigan Residential Code (MRC) as justification for permitting and inspection of such structures. Unless the staircase is attached to the home or a deck that is connected to the home, the MRC does not apply to such structures. HBAM is working with one of its contractor members to clarify this fact and may seek an injunction or a technical bulletin from the Bureau of Construction Codes to end this practice. 

Fending Off Local Construction Regulations Masquerading as Zoning Ordinances—we’ve seen a number of instances of this occurring across the state. Most recently we learned that a township south of Grand Rapids prohibited (by ordinance) the construction of homes on slabs. We sent a letter clarifying that this was a construction regulation and that the Michigan Residential Code (MRC) governed all such regulation, and they could NOT enforce this ordinance without facing potential litigation.

Escalating EGLE Permit Applications—HBAM has interceded in a number of instances recently and our CEO has been meeting bi-monthly with EGLE leadership to expedite applications. Most recently, a member brought a case forward where they were seeking a simple EGLE permit to connect to an existing public water and sewer system. This type of permit normally would take 30 to maybe 60 days and they had been waiting nearly 9 months. This unnecessarily delayed the completion of a much-needed workforce housing project on the east side of the state. After interceding, the permit was issued a week later.

Speeding up Utility Connection Requests—HBAM has a 4^th Wednesday noon Zoom call each month with DTE, Consumers Energy and officials from the Michigan Public Service Commission to discuss connection challenges and issues around the state. Any member can participate in these calls and bring forward any problem they are experiencing. But members don’t have to wait for these calls to bring problems to our attention. We can help escalate your utility connection request. Simply contact our Lansing office.