News Summary

The state of Michigan has suspended the introduction of new residential construction and energy conservation codes following a legal challenge from housing trade groups. This decision delays regulations originally due to take effect on August 29, leading to ongoing debates about housing costs and building standards in the state.

Lansing, Michigan – The state of Michigan has paused the implementation of new residential construction and energy-conservation codes following a legal challenge from two housing trade groups. The decision, made by Court of Claims Judge James Redford, delays the rollout of these regulations, which were originally scheduled to take effect on August 29. The Department of Licensing and Regulatory Affairs (LARA) is defending against the lawsuit initiated by the Home Builders Association of Michigan and the Michigan Manufactured Housing Association.

The stipulated order issued by Judge Redford mandates that LARA will postpone the new regulations until the ongoing lawsuits are fully resolved. In a significant agreement reached in the legal proceedings, the industry organizations have agreed not to seek separate legal action designed to enforce a law requiring LARA to update the residential code every three to six years.

The legal conflict began when the Home Builders Association of Michigan and the Michigan Manufactured Housing Association filed a lawsuit on June 20 against the recent code changes submitted on May 1. The plaintiffs argue that the adoption of the 2021 edition of the International Residential Code contradicts legislative intent and is deemed arbitrary and capricious. Additionally, another lawsuit filed concerns the 2021 International Energy Conservation Code, asserting that its implementation is unnecessary and likely to introduce confusion, also labeling it as arbitrary and capricious.

According to Bob Filka, CEO of the Home Builders Association of Michigan, the new codes are estimated to add approximately $15,000 to the price of a new home in Michigan. Filka has expressed hope that the current pause will create opportunities for negotiations related to the adoption and implementation of the 2024 residential model code.

Supporters of the 2021 codes argue that the proposed regulations would lead to long-term savings on energy costs, improve air quality, and contribute to a reduced carbon footprint for the state. However, the legal disputes illustrate the contention within the housing industry regarding the balance between updated building standards and affordability in housing design and construction.

It’s important to note that Michigan’s residential construction codes have not been updated since 2015. This stagnation has raised concerns about the state’s housing quality and energy efficiency in an evolving market that increasingly prioritizes sustainability.

As of now, no court dates have been set for future proceedings, leaving stakeholders in the construction and housing sectors awaiting clarification on the path forward. The outcomes of these legal challenges will likely have significant implications for the state’s housing market and regulatory environment.