Incentives work even for bureaucracy

More importantly, the reforms also created a system that strongly encourages cities and counties to approve new home permits in a timely manner. When a builder or property owner submits an application to build a new home, the city and county have 30 business days to process it or request an amendment.

If government offices fail to respond within that time frame, the local must refund 10 percent of the application fee for each additional business day of silence. Application fees can vary greatly by area, but the average cost in Florida is about $1,000, according to HomeAdvisor.com. If officials request corrections to the application, they have 10 working days to approve or reject the resubmitted application. Exceeding that deadline automatically gets a 20 percent refund, with another 10 percent added for each additional day missed, up to a five-day cap.

This is from Hayden DuBlois, “Florida has begun punishing bureaucratic delays. Housing permits have increased,” The Washington PostJuly 25, 2022.

Results:

In the years leading up to the new law, the growth rate for new home construction in Florida was about the same as the national average. Although many factors can affect home construction and the law was in effect for only part of the year, Florida’s home construction rate in 2021 was two-thirds higher than the national average. More than 30 percent more permits were issued in Florida last year than in 2020 Reduction in red tape certainly helped the boom

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