A huge bureaucratic backlog is creating major problems for local homebuilders.

They blame a new state law requiring that all building contractors be licensed. That backlog in Lansing means some builders are left on the sidelines.

This is usually the busiest time of year for the company, All Phase Remodeling, as they help residents redo their homes.

Lyle Whittaker owns the All Phase Remodeling. He says he's frustrated because some of that work is getting delayed.  

Lyle Whittaker, All Phase Remodeling: "If I can't get building permit, I can't build, I can't put employees to work."

New legislation went into effect on June 1st requiring all building contractors to personally be licensed by the state. Previously, only their company needed to be licensed. Thousands sent in applications for licenses. And now there's a huge backlog of builders waiting to get those licenses.  

Lee Schwartz, MI Assoc. of Homebuilders:"It is very tough out there, the last thing they need is to get a job and not be able to earn their money on that job."

The state office of commercial services processes the applications. They say almost all of these applications came in at the last minute. Now to deal with the backlog they've shifted dozens of workers to focus on these applications.  

Andrew Metcalf Jr. Director, Office of Commercial Services: "You have do credit check, criminal history all of those things, we are throwing as much staff as we have at the problem."

The state says it may take up to two months get through all of the applications. Lyle whittaker is hoping his application is at the top of the stack, saying his company can't afford to have their work delayed much longer.