Virginia Capitol Connections, 2025 Annual Magazine 27 So, what are these regulatory requirements that drive up the cost of housing? How are local governments creating hurdles for response to the lack of residential units in single- or multi-family developments? In the interest of transparency, the NAHB and NMHC provide a breakdown of those regulatory processes and what share of the 40.6% they represent? It turns out that the regulations that have the strongest impact on the cost of development are primarily beyond local government regulation. The single largest cost impact is due to the reliance of localities on the International Building Code. This code, which specifies standards for building construction, accounts for more than one-quarter of the total regulatory costs, and 11.1% of the total cost of development. While the code has been modified frequently, it is not generally due to local government action. It is, however, often changed due to perceived or real shortcomings of the code. For instance, the collapse of major multifamily structures in Florida, advances in engineering, or advances in building materials may require adaptation—but rarely due to local government action. Surely there is a benefit to requiring that standardization for health, safety, and structural integrity issues is important. A second cost that developers cite is compliance with the regulations of the Occupational Safety and Health Administration, which accounts for another 2.6 percent. Protecting worker safety is always important, but the risks at construction sites can be great. Again, not a locally imposed cost. Additional costs are associated with the filing of applications, site work that may include extending water/sewer lines, the costs of reviewing plans for accuracy and completeness, traffic studies, and other studies for environmental protection (like erosion controls and interference with stormwater channels), or the need to add local facilities like new schools, parks, police, and firefighters. These are costs that should not have to be carried by existing taxpayers, who have paid for the construction and maintenance of buildings, roads, and other infrastructure. While there are other costs that the study addresses, perhaps the most surprising is that in communities that mandate affordability (such as inclusionary zoning or contributions to a housing trust fund), these mandates are specifically focused on improving affordability. All of this is not to say that localities can’t make an impact on affordability. Many communities have sought out creative ways to increase the pool of affordable rental and purchase units, with help from the federal and state governments. But localities also face the need to demonstrate to their citizens that affordable housing is necessary and desirable. For the past quarter century, the Coalition of High Growth Communities—an organization of about 20 of the state’s fastestgrowing localities (with a major share of the state’s current population)—has worked to protect and enhance our ability to find the right approach to housing and other needs. As a group of local government officials of every partisan (or nonpartisan) stripe, we don’t advocate for or against particular local decisions. Instead, we work to convince the General Assembly and Executive Branch in Virginia to protect and enhance our ability to address these challenges. We have worked with the development community in the state to address common interests and opposed their efforts to restrict our authority over development. We welcome the opportunity to engage with issues that profoundly affect the localities that we serve. John McGlennon is a professor at William and Mary College and a member of the Board of Supervisors of James City County. Serving Virginia’s fast-growing communities since 1998 highgrowthcommunities.org CONNECTIONS Capitol Virginia ★ ★ ★ ★ 2026 CELEBRATING 40 Years The Redbook 1987–2026 Coming in January 2026! The go-to Virginia legislative directory, with everything you need in one place... Order Yours at www.wordsprint.com/ vcc-publication-orders.html V
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