Housing First Minnesota sent a letter to the city of Cottage Grove regarding its Seasonal Temporary Certificate of Occupancy (CO) Fee proposal, requesting the implementation of the fee be stopped due to the lack of statutory authorization to implement the fee.
The letter follows a meeting held this past Thursday in which city staff met with Housing First Minnesota members and other builders to walk through the proposal.
This non-refundable $8,000 fee applies to only certain months of the year and easily exceeds typical building permit and inspection fees in the city. The fee seemingly functions as a revenue generation measure for the city, rather than a cost-recovery matter.
Housing First Minnesota requests that the following questions be answered by the city:
- Under which statutory basis does the City derive the authority to enact the Seasonal Temporary CO Fee?
- How was the $8,000 fee determined for proportionality and how are these funds utilized with an essential nexus to the underlying need for the fee?
- What specific role do existing escrows required by the city play in ensuring project completion?
The letter also requests a meeting with the city to discuss these questions and how the city can better address the housing shortage and affordability crisis in Minnesota.
Members with questions should contact Nick Erickson, senior director of housing policy.
