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Increased City Inspection Fees?

St. Louis City has been receiving federal funding for lead remediation in residential dwellings for quite a few years now. Unfortunately, the city has done such a great job with lead remediation that it is losing this funding. Since the effort to remove lead for residential homes has been so successful in St. Louis City, the Federal Government has decided to transfer this funding to other cities that haven’t done as well.

The only way for the city to maintain its high level of lead remediation would be to raise revenue for it. Where would these monies come from? Well, there is currently a bill in session (Bill 292) that seeks to increase residential inspection fees to cover the cost of lead remediation. The last time inspection fees were raised was in 2000.

The original proposal for this bill included increased inspection fees: $300 for single family home, $400 for 2-family, $450 for 3-family, $600 for 4-family and for a building with 5 or more units, $200 for first unit and $150 for each additional unit

Considering the current inspection fee is $70 per residential dwelling unit, this increase to a proposed $300 would create a financial hardship for home sellers who may already be taking a loss on their homes. Fortunately, the language of the proposed bill was significantly revised after a tremendous effort by the Governmental Affairs Department of the Saint Louis Association of REALTORS® on behalf of home sellers.

The current bill that has been introduced but yet to be discussed includes a smaller fee increase than originally proposed.  The new fee would be $100. If the property is multifamily and several units are inspected at the same time, the current fee is $70 for first unit and $25 for each additional unit while the new fee would be $100 for first and $50 for each additional. If, however, one unit inspected at a time in a multifamily building, the current fee is $70 per unit and the new fee would be $100 per unit. In addition, if someone unlawfully occupies a dwelling, the current fee is $110 to get an occupancy permit and the new fee will be $150.

Thanks to Celeste Rueter, Governmental Affairs Director for Saint Louis Association of REALTORS®, for providing information

Dan Brassil
Real Estate Professional
St. Louis Real Estate

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