The National Association of Home Builders (NAHB) addressed Congress on the impact of federal permitting inefficiencies on housing costs. NAHB Chairman Carl Harris testified before the Senate Environment and Public Works Committee, highlighting how these inefficiencies delay projects and increase construction expenses, worsening the housing affordability crisis.

Harris explained that many land developers avoid certain parcels due to uncertainties in obtaining necessary permits. He pointed out that under the Clean Water Act (CWA), it's often unclear which parts of a parcel are considered "waters of the United States" (WOTUS), requiring a federal wetland permit. "Obtaining a CWA Section 404 permit takes upwards of one year, and completing an Endangered Species Act (ESA) consultation when required can take several more," Harris stated.

A 2021 NAHB study found that regulatory costs contribute to 24% of a new single-family home's final price. Simplifying the federal permitting process could reduce construction costs and increase housing supply.

The NAHB urged Congress to intervene if agencies fail to define terms like "relatively permanent" water flow or "continuous surface connection." Additionally, they called for timely processing of jurisdictional determinations and CWA Section 404 permits. Regulatory changes should not invalidate prior approved determinations.

Similar issues arise with the ESA's Section 7 consultation process, where builders must consult with wildlife services before impacting endangered species. This leads to delays and project reconfigurations. Establishing clear timeframes for consultations could mitigate these delays.

“Enacting common sense regulatory reforms that will make compliance more efficient and less onerous will help home builders to better safeguard the environment and expand the availability of attainable, affordable housing for all Americans,” Harris concluded.