BIA Advocacy Update

Results from Federal Reserve Bank of Minneapolis construction survey

Twice a year, BIA-RRV partners with the Federal Reserve Bank of Minneapolis to share a survey with construction firms to gauge the sector’s performance and overall outlook. 

During the webinar hosted on Dec. 12, 2025, regional outreach director Erick Garcia Luna results from the fall survey for the Ninth District (Minnesota, North Dakota, South Dakota, Montana 26 counties in Wisconsin, and the Upper Peninsula of Michigan). 

The following were the key takeaways identified:

• Uncertainty persists 
• Decreasing availability of new projects 
  • Respondents reported shrinking backlogs and fewer requests for proposals.
• Lower but stubborn cost increases 
• Unrelenting labor challenges
  • Foreign‑born labor matters. Reliance is notable- infrastructure (27%), commercial (23%), residential (21%), industrial (18%) report dependence; residential shows the highest share reporting significant reliance.
  • Challenges to find workers remains
• Expectations remain subdued
  • Over the March–Oct. 2025 period, 46% of firms saw activity decline vs. 32% reporting increases; expectations for Nov. 2025–Mar 2026 remain subdued (28% expect increases vs. 38% expect declines).

The presentation showed additional takeaways.

2025 BIA-RRV Advocacy Highlights

The following are highlights from 2025's advocacy work and provide just a snapshot. If these examples at first-glance don’t seem to impact your company, it is important to remember that there are ripple effects. As each of our members contribute to building, housing and the economic vitality of the region, it is key for all aspects of the industry to be healthy and operating smoothly for you to do your job.

1. Reducing Regulatory Burdens (Builders)

• Example: Protected basement construction
  Supported FEMA basement exceptions for Fargo and nearby communities, which are essential for severe weather and affordability.
• Impact: Regulations account for roughly 25% of housing costs. Reducing unnecessary regulations helps keep housing attainable.

2. State Legislative Work (Builders & Associates)

• Examples: 
  • ND: Prevented unnecessary heating requirements
    Blocked a rule requiring a 68-degree minimum temperature in rental units regardless of if they were occupied or not. This would’ve raised operating costs, especially in multifamily buildings.
  • MN: Improved leave programs 
    Encouraged reforms to the Earned Sick & Safe Time and Paid Family and Medical Leave programs to offer more employer flexibility. Partnered with the FMWF Chamber on a legislator letter campaign.

• Impact: Many companies in the building industry are small businesses. These programs often create substantial burdens, so increasing flexibility is key for allowing small businesses to stay in operation and remain competitive.

3. Shaping Policy (Builders & Associates)

• Examples:

• Kept the building industry at the table in Fargo
  Continued collaboration with city staff and hosted meetings with developers and builders as part of Fargo’s Land Development Code update process.
• Industry voice on Capitol Hill
  Met with North Dakota’s congressional delegation to discuss tax policy, workforce development and energy codes. We specifically advocated for a longer sunset period for several energy-efficiency tax credits (Sections 45L New Energy Efficient Home Tax Credit, Section 25D Residential Clean Energy Audit and Section 48E Clean Electricity Tax credit), recognizing many have already included these programs in their plans. This was included in the Senate version of the bill which passed.

• Impact: Being in front of our delegation ensures they’re able to hear the real-world impact their decisions have on builders and industry partners.

4. Promoting Growth (Builders & Associates)

• Example: Launched the Return on Incentives (ROI) website
  Introduced ROIFM.com, highlighting stories and data to support informed policy decisions. Economic incentives help grow the tax base, support development and redevelopment, and assist in creating jobs across the region. We also continued to advocate for the two-year property tax exemption for new construction, which helps keep new housing attainable and encourages investment.
• Impact: Economic incentives help fuel local construction, which means more jobs, stronger tax bases and economic benefits across the community.

5. Information Resource (Builders & Associates)

• Examples:
  • Shared building permit activity data
    Provided building permit data across 12 local jurisdictions to track trends and inform decisions via our Permits Plus publication.
  • Provided data on housing’s economic ripple effects
    Worked with NAHB to study the important economic impact of single-family and multifamily building in our region.
  • Events that elevate our industry
    Hosted advocacy-focused events like Building Industry Connect and Commercial Builder Roundtables, providing platforms to engage with officials and learn commercial industry needs.

• Impact: Gives you knowledge to make informed decisions and connects you with individuals shaping policies that affect businesses and our region.

National Association of Home Builders' 2025 major wins

NAHB was hard at work this year advocating for various policies and provisions that improve business climate, access to housing and easing regulations. 

The following are examples of their work:

One Big Beautiful Act Provisions

• Blocking a $4 trillion tax increase by making key provisions in the Tax Cuts and Jobs Act permanent, including the tax rate structure and increased exemptions to the Alternative Minimum Tax.
• Making the 20% Section 199A Qualified Business Deduction permanent which helps provide tax parity for pass-through entities. 
• Providing more resources for affordable rental housing by expanding the Low-Income Housing Tax Credit.
• U.S. Firms Exempt from Beneficial Ownership Reporting
• NAHB advocated to protect small businesses from substantial compliance burdens, including working with lawmakers to provide ample time to understand and comply with these reporting rules and filing an amicus brief.

FHA Cuts All Multifamily Mortgage Insurance Premiums to 0.25%

The Federal Housing Administration cut the FHA multifamily mortgage insurance premiums (MIP) for all multifamily programs to 25 basis points. Before this reduction, multifamily MIPs ranged from 25 basis points up to 95 basis points. This makes programs more cost effective and should stimulate multifamily housing production.

Six-Month Delay on HUD’s 2021 IECC Rule

NAHB convinced the Department of Housing and Urban Development and Department of Agriculture to wait until May 28, 2026, to enforce the compliance dates for adopting the 2021 International Energy Conservation Code (IECC) and ASHRAE 90.1-2019 as the minimum energy-efficiency standards for certain single-family and multifamily housing programs. NAHB and 15 state attorneys general filed a complaint to stop the adoption of these standards. NAHB is also working to get legislation introduced.

Your BIA-RRV and North Dakota Association of Builders advocated to stop the adoption of the standards during their visit to Washington, D.C. in June, 2025.

A Revamped WOTUS Rule

The Environmental Protection Agency and the U.S. Army Corps of Engineers announced a proposed updated definition of the “waters of the United States” (WOTUS). The rule will provide builders clarity by defining which waters are subject to federal jurisdiction under the Clean Water Act while continuing to protect vital waterways. NAHB engaged in the rulemaking process, participating in listening sessions and providing written feedback on how federal regulation impacts development practices.

Key Codes Wins

Although not finalized, NAHB staff and members worked through the International Code Council’s (ICC) model building code development process to:

• Defeat two proposals, which would: 1) require fuel gas detectors and alarms in homes with fuel-fired appliances, and 2) extend flood-resistant construction for one- and two-family dwellings and townhouses to the 500-year floodplain. 
• And gain approval of proposals to 1) restore the traditional 8-1/4" tread depth and 9” riser height for stairs used in many states, and 2) reference the ICC 1200 series of standards for modular and panelized construction.
• More can found in NAHB's article outlining their wins.