Michigan homebuilders plan to sue the state as part of a bureaucratic battle tied to construction regulations.

A legislative committee this week missed a deadline to take any action on proposed construction codes for residential building standards due to a lack of attendance by lawmakers. That means the proposed codes will likely take effect later this year over the objections of many homebuilders in the state. The codes are favored by environmental groups.

Homebuilders in the state have long preferred an updated set of construction codes that they say are less costly and less rigid, while providing comparable efficiency to what’s now headed toward approval. Advocates for the industry say the proposed codes violate state laws and they expect to file a lawsuit in the coming weeks.

At issue before the state’s Joint Committee on Administrative Rules was a set of 2021 codes proposed by the Michigan Department of Licensing and Regulatory Affairs, as opposed to newer codes rolled out last year. The codes are developed by an international agency and state law requires LARA to adopt new construction and electric codes every few years.

Michigan’s current residential codes date back to 2015. Under state statute requiring a three-year period between code adoption, it appears the state cannot begin adopting the newest 2024 codes until at least 2028. 

Those testifying before the committee generally credited interruptions from the COVID-19 pandemic as the reason the 2021 codes were not adopted sooner.

Building inspectors and code experts, however, said they believe Michigan’s system of code adoption is “broken,” pointing to redundancies from a plethora of codes, as well as the time — at least a year — it takes to get new codes adopted. 

The issue is mired in bureaucracy and obscure state laws, but homebuilders and their Lansing advocates say moving forward with the newest set of construction codes is critical for numerous reasons, most importantly addressing the state’s housing shortage.

While giving credit to the administration of Gov. Gretchen Whitmer for various housing initiatives, the residential building codes pushed by LARA mandate use of myriad materials, such as specific framing and insulation. 

“These mandatory requirements will limit house design and needlessly add costs,” according to Bob Filka, CEO of the Homebuilders Association of Michigan trade group. “The 2024 model code uses a point system that allows innovation and better design to determine which products are utilized. So long as a builder meets the necessary point totals, a variety of products and innovative designs may be used.” 

Filka estimates the 2021 codes will add around $15,000 to the price of a new home.

The homebuilders group plans to move forward with a lawsuit against the state in the coming weeks and on myriad grounds, Filka said. That includes that the codes set to be implemented by LARA violate a state law mandating a seven-year payback period for energy efficiency. The 2021 codes have a payback period of 12 years, per a report by the U.S. Department of Energy. 

HBAM successfully sued the state on similar grounds several years ago, during the administration of Gov. Jennifer Granholm, according to Filka. 

Officials at LARA did not respond to messages seeking comment.

Andrew Brisbo, director of the state’s Bureau of Construction Codes housed within LARA, testified last month that state law requires the agency to close the books on the implementation of the 2021 codes before moving forward with the 2024 set, which he said it would begin doing shortly after adopting the older codes.

Homebuilders take issue with that, however. 

“You have to be able to train all your building inspectors, you have to be able to train your guys in the field,” Aaron Vander Muelen, president of Holland-based Vander Meulen Builders, said last month during testimony before JCAR. “And to start that process again a year later, that’s what I’m objecting to.”

Beyond the process of implementing one set of codes only to move to another within a short time, Vander Meulen said the 2021 codes are “rigid” around the use of materials and use “shaky” building science, while the updated version improves building efficiency by 6%-8%.

Environmental groups, however, have praised the new codes, saying they’ll save buyers money over the long run due to added energy efficiency. 

“Michigan and the nation are feeling the dual threats of both rising costs and climate,” Carlee Knott, energy and climate policy manager at the Michigan Environmental Council, said in a statement. “As boring as they may sound, Michigan’s new building codes are a huge win for Michigan’s homeowners, workers and the environment. They’ll keep energy costs down, they’ll keep indoor and outdoor air cleaner, and they’ll make homes more resilient and comfortable no matter the weather.”

Grace Michienzi, senior director of policy for the Michigan Energy Innovation Business Council, has contended that the 2021 codes make economic sense over the long term, saving homeowners some $4,500 over 30 years.

“This is because incremental investments in energy efficiency at the time of construction have been shown through studies to save homeowners money on their energy bills,” Michienzi wrote to JCAR in March.