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Minnesota, Pennsylvania Advance Laws on Municipal Professional Fees - 11/8/2004 - Attorney Lawyer Legal Building Codes Zoning

Minnesota, Pennsylvania Advance Laws to Rein in Municipal Professional Fees

Home builders associations in two states — Minnesota and Pennsylvania — have worked on behalf of legislation to regulate the frequently excessive professional fees that municipalities are charging developers during the permitting process.

 

The Minnesota law, which took effect on Aug. 1, amends the state’s planning statute and clarifies and defines regulatory fees that can be imposed by municipalities.

The Pennsylvania legislation (SB 892) defines and clarifies regulations and actions relating to professional consultants. The bill has been passed by both houses and is currently in the Senate's Rules and Executive Nominations Committee.

Professionals consulted during the permitting process — such as civil engineers, attorneys, land planners and architects — often demand higher salaries than other municipal workers or charge high hourly consulting fees, both of which can contribute to local budgetary problems.

 

 

Because consultants are not public employees and their wages are not regulated, they can overcharge municipalities for their services, and those costs are then passed on to developers. In some cases, cities condone the excessive fees as a way to deter development and slow growth or pad city budgets with an additional source of revenue.

For more information on ways to regulate municipal development consulting fees, e-mail Ed Tombari in NAHB's Land Development Services Department, or call him at 800-368-5242 x8309.

For more information on the legislation, e-mail Sam Leyvas in State & Local Government Affairs, or call him at x8326.


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