Late this summer, HBAM secured another significant legal victory when a Shiawassee County Circuit Court ruled that the City of Owosso's exorbitant water and sewer tap-in fees violated Michigan's Constitution. The decision means builders and developers who paid the excessive fees (some $12,000 or more per home) will receive court-ordered refunds. Just as importantly, the ruling establishes another legal precedent that strengthens HBAM's ability to challenge unlawful local fees across Michigan.

The Owosso decision is only the latest example of what the association's Legal Action Fund has accomplished in 2026. From precedent-setting court victories to successful regulatory challenges and ongoing litigation, HBAM continues to protect housing attainability by pushing back against unlawful government actions and unnecessary costs. Below is a quick look at some of this year's most significant legal victories and ongoing cases. Visit hbaofmichigan.com/legal to learn more.

2021 Building Code Litigation

HBAM's ongoing lawsuit against the Michigan Department of Licensing and Regulatory Affairs (LARA) continues to prevent enforcement of the 2021 Michigan Residential Code, which includes unnecessary and redundant insulation requirements estimated to add roughly $15,000 to the cost of a new home. The case has already saved Michigan's residential construction industry an estimated $240 million annually while preserving housing affordability for future homebuyers. HBAM continues to defend the industry's position as the litigation moves forward.

Consumers Energy Connection Fee

When Consumers Energy implemented a flat $1,300 electric connection fee for new homes earlier this year, HBAM immediately challenged the policy before the Michigan Public Service Commission. By demonstrating that the average connection distance was significantly shorter than Consumers Energy's assumptions, HBAM successfully argued for a return to a cost-based fee structure. On August 6, the MPSC replaced the flat fee with a $9.93-per-foot charge, saving builders and future homeowners approximately $1,000 on a typical new home.

City of Troy Permit Fee Victory

This spring, HBAM concluded its 15-year permit fee lawsuit against the City of Troy with a precedent-setting victory that empowers us to seek changes to other excessive local permit fees across the state. The court ruled the city's permit fees unlawfully generated revenue beyond the operation of its building department and ordered the city to reimburse HBAM for its legal fees. In addition to recovering those costs for reinvestment in future legal advocacy, the decision provides an important legal precedent as HBAM investigates excessive permit fees in other Michigan communities.

White Lake Fire Authority Sprinkler Litigation

HBAM's lawsuit against the White Lake Fire Authority seeks to stop a growing trend of local governments attempting to require residential fire sprinklers through local adoption of the International Fire Code (IFC). The IFC includes sprinkler requirements when fire fighting vehicle access is an issue, however, provisions of any code that conflict with the Michigan Residential Code are not enforceable under Michigan Law. We believe state law is clear on this, but many local officials are being convinced they can enforce the conflicting provisions as a local ordinance. A favorable ruling would help prevent unnecessary sprinkler mandates from spreading to communities across Michigan, saving future homebuyers tens of thousands of dollars in additional construction costs.

Grand Haven Township Appeal Rights

This ongoing case addresses who has the legal authority to appeal local building department decisions. We believe HBAM should be allowed to appeal any action without having to name the builder or their customer as the party appealing a decision. State law says any interested party may appeal, but it does not define “interested party.” Traditionally, this provision in law has been interpreted to mean the contractor or the homeowner, but lengthy appeal timelines and fear of retribution mean no appeals are getting filed. A favorable ruling would strengthen HBAM's ability to address unlawful local actions and protect members throughout the state.

 These victories, and the cases still underway, demonstrate the impact of HBAM's Legal Action Fund and the commitment of members who invest in protecting Michigan's housing industry. Every successful challenge helps remove unnecessary barriers to housing while creating precedents that benefit builders and homebuyers across the state. To join our legal action supporters and be part of making a difference for housing, scan the QR code on page _ or visit hbaofmichigan.com/legal.