A new package of legislation introduced in the Michigan House could significantly reshape how state-issued construction permits are reviewed, modified and communicated to applicants. 

House Bills 5932–5935 focus on improving predictability and accountability in the permitting process administered by the state. The package centers on permit review timelines, notice requirements, reimbursement provisions and post-issuance changes. 

For residential builders, developers, remodelers and trade contractors, the legislation signals a broader push toward reducing delays and uncertainty that can add cost and slow project delivery. 

The four-bill package would amend Michigan’s construction permitting process and is designed to establish clearer expectations between permit applicants and the Department of Licensing and Regulatory Affairs (LARA). 

Collectively, the legislation seeks to: „ 

• Limit prolonged permit review cycles „ 
• Clarify timelines for correction requests „ 
• Increase transparency during the review process „ 
• Reduce unexpected post-approval modifications „ 
• Create financial accountability for missed deadlines 

Industry stakeholders have long argued that inconsistent review timelines and latestage revision requests contribute to project delays, labor scheduling conflicts, financing complications and escalating construction costs. 

HB 5932 would establish procedures governing modifications to building permits after they have already been issued by the department. Builders frequently encounter situations where permit conditions or requirements shift after approval, resulting in redesigns, scheduling disruptions or additional compliance costs. 

HB 5932 attempts to create guardrails around that process by defining how and when changes can be imposed after a permit has been granted. 

HB 5932 would help cut down lag time in the process by: „ 

• Creating greater predictability during active construction „ 
• Reducing redesign and engineering costs „ 
• Improving project scheduling 

The bill is tie-barred to HB 5933, meaning neither bill could take effect without the other. 

HB 5933 would require the department to identify requested changes or deficiencies within a defined review period after a permit application is submitted. The proposal is intended to create a more front-loaded review process that identifies deficiencies earlier. Once enacted, it would also help cut down lag time in the process by: „ 

• Speeding up permit turnaround times „ 
• Reducing carrying costs for projects awaiting approval „ 
• Creating better coordination between architects, engineers and contractors „ 
• Having more predictable municipal and state review processes 

Again, this would only go into effect if both HB 5932 and HB 5933 are signed into law. 

HB 5934 would require reimbursement of permit fees if a permit is not approved or denied within established deadlines. Should this be enacted into law, it could reduce another one of the 8 Ls of Home Building: Lending (Fees and Financing). 

As a builder, you understand all too well that permit delays can create significant financial exposure for builders through: „ 

• Increased interest carry costs „ 
• Labor rescheduling „ 
• Material escalation „ 
• Delayed occupancy and closings 

HB 5934 introduces a financial consequence for missed timelines, potentially incentivizing more efficient review practices. 

The proposal aligns with broader national conversations around permitting reform and housing production efficiency. 

HB 5935 would establish notice requirements related to building permits and additional permits issued by the department. Time is money in the building industry, and lack of communication during the permit process is often cited as one of the industry’s biggest administrative challenges. 

HB 5935 seeks to standardize how applicants are informed about permit status, required actions and departmental decisions. Should this bill be passed and signed into law, builders and developers would see: „ 

• Improved transparency for applicants „ 
• Fewer communication breakdowns „ 
• Better tracking of permit status and deadlines „ 
• Reduced administrative confusion between agencies and contractors 

The Home Builders Association of Michigan supported this legislative effort in the House Regulatory Reform Committee. Stay tuned for updates as these bills move through the legislative process. 

Members can help move these bills forward by visiting HBAM’s advocacy page and sending a letter to their legislators asking them to vote yes when the bills come before them for a vote. While you are at it, take a moment to show your support for the zoning reform package. 

Contact your legislator and learn more about the Housing Readiness Package at hbaofmichigan.com/advocacy.