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Economics & Trade

You have no idea what you're talking about. People in city and county government are some of the most responsive folks you'd ever want to interact with, around here at least. Getting the answer you want can be a problem.
Agreed completely. For the most part, and especially outside the major cities, the government employees are extremely friendly and responsive. They will respond, but often the response is that they are waiting on ______ for approval, or the issue has to go before the next council meeting.
 
that's insane

hard costs only or total development costs per unit?

what municipality and how many units?
Total. North Carolina, and those are our state-wide averages as we usually have multiple projects going on per year. Generally between 66 and 120 units for the rural areas. Metro is higher due to other issues (i.e. relocation).
 
100 unit building for $8 million all-in with developer fee and everything in 2019 blows my mind
 
Yeah…? The local and state government requiring you to have electrical work inspected is a building regulation. Electricians and journeymen having to be licensed is a regulation. All those regulations have to be managed by local government. What’s the confusion?
He isn't talking about inspections, he is talking about regulatory requirements. We can have an inspector out in 24 hours in most places. Even Raleigh is probably 48 hours max.

Regulations like zoning or stormwater or environmental. For one example, certain HOME or USDA funding, which are necessary for some developments, require State Historic Preservation Office environmental reviews even if they are completely irrelevant. Those can take 6 months on the quick side, as they ask like every surrounding Native American tribe or environmental concern group or university to weigh in on whether there could be anything of interest on the site to be investigated before work can proceed. And you can't do a goddamn thing on the project, not even buy the land, before the review is complete or it is considered a choice limiting activity that invalidates the funding. SO you have to wait 6 months and pray that nothing comes back as actually needing to be investigated. And that is just one component. There are usually 5 or 6 required inquiries running concurrent depending on the funding sources.

And as juice and I mentioned before, these are becoming more common because you can no longer finance affordable housing with solely conventional bank financing because the post-covid economics no longer work. So you have to tap into the alternate funding sources, which come with the more regulatory strings. So everything grinds much slower than it did just 5 years ago.
 
Agreed completely. For the most part, and especially outside the major cities, the government employees are extremely friendly and responsive. They will respond, but often the response is that they are waiting on ______ for approval, or the issue has to go before the next council meeting.
I don’t know where biff caught onto this strawman about responsiveness and friendliness, but I never mentioned or implied either of those nouns. I said local and state government offices are understaffed, underfunded, and not designed for the amount of responsibilities they have.

The only rebuttal to my argument has been an anecdote that someone’s local municipal office is friendly and doesn’t look busy.
 
He isn't talking about inspections, he is talking about regulatory requirements.
…some developments, require State Historic Preservation Office environmental reviews even if they are completely irrelevant. Those can take 6 months on the quick side, And that is just one component. There are usually 5 or 6 required inquiries running concurrent depending on the funding sources.
Why are you differentiating between inspections and reviews? Those are both forms of regulation which your local government is responsible for administering. Your statement completely supports my argument.
 
I don’t know where biff caught onto this strawman about responsiveness and friendliness, but I never mentioned or implied either of those nouns. I said local and state government offices are understaffed, underfunded, and not designed for the amount of responsibilities they have.

The only rebuttal to my argument has been an anecdote that someone’s local municipal office is friendly and doesn’t look busy.
They are not understaffed and they are not underfunded (from a personnel standpoint; infrastructure is different). Maybe in Charlotte and Raleigh, but not the other 98 counties.

The design is the issue from the standpoint that it is a pyramid structure but very few issues can be decided at all but the top of the pyramid.
 
Why are you differentiating between inspections and reviews? Those are both forms of regulation which your local government is responsible for administering. Your statement completely supports my argument.
They are not similar at all. An inspection is someone coming out to the site to check if work, as installed, matches what is on the plans and is up to code. That takes a few hours to call in and, depending on the size of the project, a few minutes or hours to complete. It is usually done by a redneck with a GED.

A review generally runs through multiple offices and layers of government. Often across local, county, state, and federal. And they often have nothing to do with the work itself. Traffic studies. Environmental reports. Market studies. System stress reports. Flood analysis.
 
They are not similar at all. An inspection is someone coming out to the site to check if work, as installed, matches what is on the plans and is up to code. That takes a few hours to call in and, depending on the size of the project, a few minutes or hours to complete. It is usually done by a redneck with a GED.

A review generally runs through multiple offices and layers of government. Often across local, county, state, and federal. And they often have nothing to do with the work itself. Traffic studies. Environmental reports. Market studies. System stress reports. Flood analysis.
I’m aware of the details - these are both forms of regulation administered by the government. A private citizen or business needing permission/approval/license to do something.
 
I’m aware of the details - these are both forms of regulation administered by the government. A private citizen or business needing permission/approval/license to do something.
Sure, in the same way that getting a DEA distribution license is akin to getting your fishing license.

One is pre-construction and one is post-construction. One significantly slows down development and one does not. Nobody, anywhere, is claiming that local building inspectors are a primary cause of a lack of affordable housing.
 
Bananas

Our Indianapolis 55-unit development that just opened was like $14 million
We have a 66 unit that just opened 4Q 2023 in BFE that came in just under $10 million. 55 is tough depending on your building design. We've determined we can't make anything below 60 work in this environment unless there is significant subsidy from somewhere.
 
Nobody, anywhere, is claiming that local building inspectors are a primary cause of a lack of affordable housing.
You are caught up in an irrelevant detail. I don’t give a shit if we are talking about ice cream cone inspection, the type of regulation is not important to my argument. You just described a “review” regulation that takes a very long time.
 
You are caught up in an irrelevant detail. I don’t give a shit if we are talking about ice cream cone inspection, the type of regulation is not important to my argument. You just described a “review” regulation that takes a very long time.
What is your argument? You said that local governments are understaffed. They are not. The local building inspector is not the problem. He may be a pain in the ass at times, but he is not the problem. You check the box in his online portal or call his office and he shows up the next day. He is fine.

The people and processes at DOT, or DEQ, or RD/USDA, or the city councils, are the problem.
 
I think mdmh is saying that people complain about the DMV and we understaff and underpay the DMV.

He also wants us to pay more taxes.

On the other hand, he's a libertarian and think we have too many regulations or something.
 
We have a 66 unit that just opened 4Q 2023 in BFE that came in just under $10 million. 55 is tough depending on your building design. We've determined we can't make anything below 60 work in this environment unless there is significant subsidy from somewhere.
we do almost all 100% permanent supportive housing, so it's definitely a different game than what I imagine you're building

in addition to building more non-residential space for services, we also get a lot of money triggering Davis Bacon and state prevailing wage


only way I can see you guys building 66 units for $10 million is if you have design and construction in house and are taking haircuts at every turn to make money on the aggregate
 
Like all modern government we tend to never have a stable middle ground and instead have massive pendulum shifts. The regulatory state shouldn’t go away but it also shouldn’t take the length of time it takes to do anything in this country.
 
What is your argument? You said that local governments are understaffed. They are not. The local building inspector is not the problem. He may be a pain in the ass at times, but he is not the problem. You check the box in his online portal or call his office and he shows up the next day. He is fine.

The people and processes at DOT, or DEQ, or RD/USDA, or the city councils, are the problem.
there are definitely government agencies that are understaffed though -- varies a lot by location and level of government, but it's not crazy to say that many places are understaffed

and they're definitely underpaid -- a big element of getting what you pay for with the competency of some of these folks
 
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