OVERVIEW
Welcome to the Policy & Regulatory Reform page. From local building codes and zoning laws to federal materials and appliance standards, the housing industry is subject to more regulatory oversight and intervention than virtually any other industry. This increased oversight places a unique burden on those in the housing industry.
Land Use & Zoning Basics | Building Code Basics | Regulation Impact On Housing Affordability | Impact Fees | Other Examples | Ivory Prize Winners
Regulatory Agencies
Regulatory agencies are government entities that can create rules and enforce policies to promote the health, safety, and welfare for their citizens. In the housing industry, many approvals are required to be met by different government entities. For example, many developers and builders will interact with city planning departments who oversee the city’s general plan, zoning plan, impact fees, and other various initiatives. For a developer or a builder to begin construction, they will need to gain approvals. Often, city approvals will affect development timelines, material costs, and density count for a project.
Land Use & Zoning Basics
Zoning is the tool that cities and municipalities use to divide land into different zones, within which various types of construction and building is allowed or prohibited. Zones can range anywhere from single-use land to multiple, compatible uses. Generally, zoning describe and define how buildings relate to their surroundings. Typically, they are used to separate land uses, such as business, manufacturing, and residential. In order to construct, a developer must first make sure the building aligns with the current zoning code of the city.
Zoning laws have a complicated history in the United States, as zoning codes were historically used to enforce racial prejudices and to disenfranchise minority groups. To learn more about this history, visit our Racial Equity in Housing page.
Building Code Basics
Building codes are a set of standards or rules designed to govern objects or buildings that are constructed. Potential builds must align with building code in order to receive planning permission from a city or municipality. Building codes are in place to ensure the safety, functionality, and health of any constructed object or building. Codes are generally defined by a city council or government, and becomes law of that jurisdiction when formally enacted by the governing authority.
Examples of How Regulations Can Affect Housing Affordability
Regulations can have both a negative and positive effect on housing affordability. Regulations define the parameters within which developers can construct new buildings. Helpful regulations will allow developers to be more creative in affordable housing solutions.
Impact Fees
Impact fees are assessed to the developer by the city to begin servicing that home. The typical city impact fees are for police, sewer, transportation, parks, etc. Impact Fees are absorbed into the overall cost of a home by developers or builders. In recent years, Utah has seen a drastic rise in impact fees throughout the state.
Other Examples
Ivory Prize Winners in Policy & Regulatory Reform
Ivory Prize 2022 Policy & Regulatory Reform Winner - build up
Build UP’s value proposition redefines what affordable housing is by taking a long-game approach to rebuilding and owning from within a community. Build Up is the first group in Alabama to implement a curriculum designed by the Home Builders Institute, another Top 25 finalist. This model, at the intersection of high-quality education, workforce development, and community revitalization, results in dignified, affordable homeownership and retention of talent and wealth, both of which seed stable home and school experiences for generations to come.
Ivory Prize 2021 Policy & Regulatory Reform Winner - Impact Justice: the homecoming project
Thousands of Americans are not only priced out of affordable housing but are often intentionally left out of many housing options. The Homecoming Project is a program that ensures successful reentry back into communities by providing safe and stable housing and a welcoming host. Formerly incarcerated people are able to integrate more easily into the community by quick placement into stable housing right out of prison.
Ivory Prize 2020 Policy & Regulatory Reform Winner - Symbium
Symbium is a computational law platform that mechanizes the rules and regulations of planning codes to help homeowners, design professionals, and planners quickly determine if an ADU is allowed on a property, what the development standards are, and processes needed to build these units. Complaw™, Symbium’s key business function, translates law regulations into computer code. Zoning regulations and lack of access to public records often hinder efficient development. Led by CEO Leila Banijamali, Symbium’s computational law will allow private and public builders alike to navigate the possibilities of each piece of property across a city’s jurisdiction.
Ivory Prize 2019 Policy & Regulatory Reform Winner - the Alley Flat Initiative
The Alley Flat Initiative (TAFI) was recognized based on their innovative efforts to change the policy framework in Austin, Texas to allow for the adoption of Accessory Dwelling Units (ADUs) – often using underutilized alleys to create additional dwelling units by tucking small, single-family homes (ADUs called Alley Flats) on existing lots. In addition, the Alley Flat Initiative has developed a “one-stop shop” for income-qualified homeowners providing personalized support through the development process including green design, financial education and pre-qualification, property management and construction guidance.
Also, The Alley Flat Initiative has partnered with the City of Austin’s policymakers and department leaders to design development incentive programs to promote income- restricted ADUs and to provide assistance to lower-income owner-developers who are facing displacement, due to rapid growth, so that these individuals are able to increase their income from the rent generated by the Alley Flats.