Government shutdown affects new-home construction
The Government shutdown which began on Oct. 1, is leaving permits in review limbo. As reported by the U.S. Army Corps of Engineers, nearly 1,300 Individual Permits for construction projects of all types are still waiting for review. In Florida alone, over 1,770 permits await approval under Section 404 of the Clean Water Act. Included in pending approval is large homebuilding companies like D.R. Horton, Lennar Homes and Pulte Homes.
Typically, the federal agencies work together with state and local governments to move projects forward. However with their work halted or greatly slowed down builders that require the complex Individual Permit review are delayed. According to the National Association of Home Builders (NAHB), “NAHB anticipates that Corps District Offices, which issue CWA Section 404 permits and jurisdictional determinations, will suspend permitting activities in early November due to a lapse in federal appropriations.”
Yet the shutdown appears to currently put more of a morale strain on builders rather than a physical one, “A permit or environmental review delay doesn’t stop land-carrying costs from rising or construction loans from racking up interest.” said Allaire Conte from Realtor. “That can take a toll on developers and a market where supply is already short.
