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Executive Order Aims to Remove Regulatory Barriers to Affordable Housing Development
The executive order directs federal agencies to review and revise policies affecting construction timelines, permitting, zoning practices, and other factors tied to housing development.
On March 13, the White House issued an executive order titled “Removing Regulatory Barriers to Affordable Housing Home Construction.”
The order directs federal agencies to review and revise policies that may slow development or increase costs. These include environmental regulations, permitting processes, building standards, and historic preservation requirements. Several provisions of the order may shape future federal policy and are especially relevant to cities.
Section 4 of the order, “Boosting Housing Affordability Through State and Local Regulatory Best Practices” is of particular interest to local governments. Within 60 days, the U.S. Department of Housing and Urban Development (HUD) must develop best practices aimed at accelerating housing construction and reducing regulatory burdens.
The order outlines several examples of those practices:
- Reducing building permit timelines and fees, which may increase administrative pressure on local building departments to meet faster review deadlines.
- Allowing by-right development for single-family homes and limiting mandates that increase housing construction costs.
- Allowing private providers to conduct building permit reviews and inspections.
- Eliminating arbitrary or unreasonable building code standards, particularly those related to green or alternative energy
In addition to HUD’s role, the order also:
- Directs the Army Corps of Engineers and Environmental Protection Agency to review and revise requirements related to stormwater, wetlands, lakes, rivers, and other bodies of water. The goal is to reduce housing construction and ownership costs, including requirements tied to Municipal Separate Stormwater System (MS4) permits.
- Directs the Treasury Department and HUD to better align programs and incentives with the Opportunity Zone tax incentives to expand investment in single-family home construction.
LMC staff take
While the executive order does not supersede any existing laws or federal regulations, it could prompt changes to federal policy and potential legislation affecting how cities coordinate with state and federal partners on housing and infrastructure projects.
At the same time, HUD’s forthcoming best practices in Section 4 of the order are not binding. Still, they may serve as a model for future state or federal action that could limit local authority.
The League of Minnesota Cities and the National League of Cities will continue to monitor the order’s implementation and its potential impacts on local control.