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this post was submitted on 08 Aug 2023
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Houses are largely built by shell companies that exist to build the neighborhood then dissolve. When the house fails in 5 years there's nobody to sue for damages.
So instead we require developers to permit and build shit right before we allow the houses to be occupied. The streets have to be built right, the increased impervious cover has to be accounted for to prevent flooding of the next property over, and inspections have to be performed.
Then, we make them pay a maintenance bond and the City takes over maintenance of the road, using the bond to pay for repairs in the first 10 years. If they build them right, the bonds don't get used, and we give the money back.
But to get the money back they have to keep the company alive, so there's someone to sue.
And the permit to build a house is about $3,500 here. I ran the numbers for our budget cycle, and we actually lose money on single family houses. We make it up some with commercial buildings, but overall our department loses money, and people building houses are being subsidized by the existing tax payers while bitching about the fees.