Analyzing Impact of Regulatory Barriers in Residential Construction.
Author(s):
Uwakweh, Ben Obinero
Publication Date:
8/1/1993
Sponsoring Organization(s):
Construction Innovation Center Cincinnati, OH
Availability:
Published in the Proceedings of the 4th Annual Rinker International Conference on Building Construction, entitled Affordable Housing: Present and Future.
Notes:
Conference held August 11-13, 1993.
Descriptors:
Building codes. Construction costs. Zoning. Zoning regulations. Land use controls. Building permits. Regulatory barriers. Planning. Housing standards.
Abstract:
The purpose of this paper is to identify regulatory barriers to residential construction and to develop a means of analyzing their impacts. Barriers include building codes, zoning, other codes, and building permits. Building codes are the most important barriers, and concerns regarding building codes center on code definition and clarity. Zoning is established to regulate land use by controlling occupancy, building height, density and use. A common concern of builders with regard to zoning is that land is often zoned at a lower number of housing units per acre than the free market would produce, thus driving up the price of both land and houses. Other codes that can affect construction costs include electrical, plumbing, mechanical, energy conservation, gas, and specialty codes, such as those governing historical preservation. These codes are sometime inconsistent with one another¦some, for example, are updated more frequently than others, and some are based on national models, while others have been developed locally. Such inconsistencies lead to higher costs by requiring burdensome paperwork, thus delaying the onset of construction. The author proposes that the severity of the regulatory barrier be measured by estimating the cost of mee ting each regulatory requirement, then comparing it to the cost of the segment of the project it affects. If the cost is less than 1 percent of the cost of the segment, the impact is low. If it is between 1 and 5 percent, it is moderate, and if it is gre ater than 5 percent, it is severe.
| 
