Senate panel advances bill to standardize residential permit fees, sends it to housing committee

Senate File 560, a bill to change how local building permit fees are calculated for one- and two-family homes, was advanced by the Minnesota Senate Labor Committee on Jan. 30 and referred without recommendation to the Housing and Homelessness Prevention Committee.

The measure would direct the Department of Labor and Industry to establish a cost-per-square-foot valuation for residential building permit fee purposes. Committee members and stakeholders framed the proposal as one step toward addressing overall housing affordability by reducing inconsistent permit fees that can add thousands of dollars to new-home costs.

Housing industry witnesses told the committee the current valuation system produces large, sometimes unexplained differences in permit fees between jurisdictions. "We have a statewide median new home price of about $540,000," said Nick Erickson, senior director of housing policy for Housing First Minnesota. Erickson said he reviewed roughly 1,800 permits and found valuation changes in 72.65% of cases after submission, with…