The City of Moorhead and the Home Builders Association of Fargo-Moorhead held a news conference on May 10, 2017, to announce that the Minnesota Legislature approved and Governor Dayton signed legislation on May 2, 2017, to amend Minnesota Rules Part 1309.0313, Sections R313.3 (Automatic Fire Sprinkler Systems), to establish that newly built one-and two-family dwellings and newly built two-unit townhouses are not required to have installed automatic fire sprinkler systems under the Minnesota Residential Building Code. For permits issued after May 2, 2107, automatic fire sprinkler systems are not required to be installed in twin homes unless the structure is otherwise required to be provided with an automatic fire sprinkler system under Minnesota law. Sprinkler systems may still be installed at the consumer's choice.
Newly constructed twin homes built after January 23, 2015, required fire sprinklers, adding a significant cost to twin homes. Since Fargo and West Fargo building codes do not require fire sprinklers in twin homes, Moorhead has been at a competitive disadvantage the past two construction seasons. As a border city adjacent to Fargo and West Fargo, cities that do not require sprinkler systems in twin homes, the sprinkler requirement put Moorhead at a competitive disadvantage.
In 2013, 40 twin home units were built in Moorhead.
In 2014, 48 twin home units were built in Moorhead.
The impact of the rule change on Moorhead's housing marketplace was pretty clear. Between January 1 and January 23, 2015, when the requirement for fire sprinklers went into effect, builders submitted permits for 48 twin homes that were built later in 2015. After the rule change, no permits were issued for the remainder of the 2015 construction season.
Moorhead Mayor Del Rae Williams said, "In 2016, permits were submitted for four twin home units, only two of which were actually built. I can comfortably say that Moorhead has pent up demand for twin homes, which are an important affordable housing product for our community."
The cost of installing a sprinkler system in a twin home is estimated at $8,500 or more. According to a 2016 study by the National Association of Home Builders, for the Fargo-Moorhead area, every $1,000 price increase results in 188 households being "priced out" of the market for a median-priced new home. These are the households that can qualify for a mortgage before a $1,000 increase but not afterwards. At a cost increase of over $8,500 for each twin home unit, this expense affects more than 1,500 potential buying households in Moorhead.
HBA of F-M Immediate Past President Tom Spaeth, Accent Contracting, notes that this clarification regarding fire sprinklers will result in more affordable housing for workforce families and individuals, and puts Moorhead and other border cities on a more level playing field with its neighbors across the river in North Dakota.
City of Moorhead, Lisa Bode, 218.299.5372
Home Builders Association of Fargo-Moorhead, Krista Mund, 701.232.5846
