HUD details red-tape cost

Burdensome state and local regulations hurt efforts to build housing that is affordable for low- and middle-income people, and the problem has only worsened during the last decade, according to a study from the U.S. Housing and Urban Development Department.

“Why Not in Our Community?” reports that regulatory barriers -- from fees levied on developers to environmental regulations used to oppose development -- can boost building costs by as much as 35%.

Fees charged to developers, for example, can add $45,000 per unit in some California communities, according to the HUD report.