State and Local Issue: Water

Exempt Well Closures and Contractor Licensing

Montana BIA (MBIA)

Water has become a critical issue facing builders throughout much of the country. HBAs are navigating challenges related to flooding, stormwater permits, water quality standards and policy implications from the Clean Water Act. NAHB’s State and Local Fund (SLIF) assists HBAs as they strive to reasonably safeguard clean water in communities while helping areas grow and thrive.

When faced with an unprecedented legislative session, the MBIA board voted to hire two additional lobbyists and additional support staff. They requested SLIF funds to mount the strongest defense possible for the home building industry. Their primary concerns for the session are LC1455: Exempt Well Closures and Monitoring Areas and an effort to create a new contractor licensing system.

By shutting down exempt wells in key growth areas, the bill could force developments to join with municipal water systems that can cost over $1 million per mile of infrastructure, to undergo the lengthy and expensive water rights permitting process, or to move even farther into rural areas. MBIA is managing a coalition that includes drillers and realtors to determine and advocate for amendments to the legislation. They have employed outside lobbyists and are strategically working to form new partnerships.

The MBIA is also facing a contractor licensing bill from the Montana Department of Labor and Industry (DLI), which would replace the existing contractor registration system, adding additional bureaucracy and fees. They anticipate that this change could shrink the already limited contractor workforce and are collaborating with local associations to present a unified voice. MBIA is also working directly with the DLI to pursue a balanced approach that does not increase barriers to housing.

Advocating for Floodplain Protection in Oregon

Oregon Home Builders Association (OHBA)

After settling a lawsuit with environmental groups, the Federal Emergency Management Agency consulted with the National Marine Fisheries Service (NMFS) and ultimately determined that the implementation of the National Flood Insurance Program (NFIP) in Oregon reduces the quantity and quality of floodplain and in-channel habitats. NMFS created new guidelines for NFIP’s implementation and local governments must adopt and enforce new requirements, such as restrictions on development, to maintain participation in the NFIP. SLIF funding will support the OHBA’s efforts to reactivate its coalition, Oregonians for Floodplain Protection, and engage in its effort to push back on environmental restrictions for flood insurance.

Revising Stormwater Permits

HBA of Greater Chattanooga (HBAGC) (Tenn.)

The City of Chattanooga imposed costly stormwater-related mitigation fees that were stricter than what was required by the Tennessee Department of Environment and Conservation. The HBAGC, the Home Builders of Tennessee, and other local HBAs provided input as the Municipal Separate Storm Sewer System (MS4) was revised. The HBAs hope to develop a statewide permit that is consistent and includes alternatives to mitigation fees. With SLIF support the HBA will hire engineers to help rewrite the MS4.

Kirkwood-Cohansey Aquifer Study

Builders League of South Jersey (Cherry Hill, N.J.)

The New Jersey Pinelands Commission completed The Kirkwood-Cohansey Aquifer Study. Now the HBA has an opportunity to critically evaluate the science and policy expectations that will arise from the report. SLIF funding will help offset the cost of hiring an expert to review the study, develop policy positions and work with the committee and community on the best pathway forward for the residential construction industry in South Jersey.

Flood Insurance and Diversion

Home Builders Association of Fargo-Moorhead (N.D.)

The Fargo-Moorhead area needs permanent flood protection. A U.S. Army Corps of Engineers study determined that a diversion is the best solution. However, a well-organized group of upstream landowners oppose the project. Without the diversion, FEMA will again remap the flood plain and dramatically increase flood insurance rates for home owners in the area. SLIF funds will help the HBA develop a public relations and advertising campaign to combat negative perceptions about the project in the community and the media.

Reedy River Water Quality Initiative, Economic Impact Study

Home Builders Association of Greenville (S.C.)

The Reedy River is a signature part of the community. The river is currently impacted by nitrogen due to growth and urbanization. Association members are actively working with the community on developing a framework to replace the current water quality standards set forth by the state. SLIF funding will help the HBA develop an economic study on how mitigation efforts will impact local growth and development.