read Read

e-mail E-mailprint Print

last updated on March 13, 2008

BUILDING CODES

THE ISSUE IS…Standardized building codes -- and adequate enforcement of those codes -- play an increasingly important role in public safety and loss prevention, even in states that do not have a major natural disaster catastrophe exposure.

IT’S IMPORTANT BECAUSE…In addition to saving lives and reducing property loss, statewide building codes based on nationally recognized standards can reduce the need for public disaster aid; promote a level and consistent playing field for design professionals, suppliers and builders; create a minimum standard upon which consumers can rely; contribute to the durability of structures; and, in some locations, favorably affect the affordability and availability of insurance. In fact, the Louisiana State University Hurricane Center estimated that of the $10 billion in damage to homes in Louisiana after Hurricane Katrina, modern building codes would have spared 80 percent of the damage.

However, state standards for construction, code-related inspection and enforcement vary widely across the country. Some states have adopted statewide building codes applicable to virtually every type of structure, while others employ lesser degrees of regulation and code applicability -- or none at all. Where statewide codes exist, it is not uncommon to see individual jurisdictions allowed to deviate from the state standard, occasionally resulting in a weakening of the model minimum standard.

While NAMIC strongly supports more stringent building codes, we recognize that enacting these laws at the state level has been very difficult. Therefore, there is a critical need to develop federal incentives to encourage states to adopt statewide building codes. One such way to do this is by increasing the amount of post disaster mitigation aid a state can receive following a natural disaster based on whether that state has adopted stronger statewide building codes.

In response to the overwhelming evidence that building codes are an effective way for the government, insurance companies and homeowners to save money, NAMIC created the Building Code Coalition (BCC) to develop federal legislation that would incentivize states to create or better enforce statewide building codes. After careful consideration, the BCC decided the best way to incentivize states was to amend the Stafford Act. Under current law, FEMA provides federal assistance for mitigation efforts by the states under the provisions of the Robert T. Stafford Disaster Relief and Emergency Assistance Act. The amount of funding available is limited to 7.5 percent of the total disaster grant awarded the state by FEMA, as long as the state has a standard mitigation plan. However, if a state has an enhanced mitigation plan, it is currently eligible for 20 percent in post-disaster mitigation. NAMIC and the BCC support creating a separate financial incentive for those states that have adopted strict statewide building codes. This approach would provide a new incentive for states to adopt statewide building codes. For those states that commonly experience natural disasters, this financial incentive should be very desirable.

Following the 2005 hurricanes, Congress has been looking into possible solutions to prevent further loss in future events. NAMIC, along with other members of the BCC, has been actively meeting with members of Congress and their staffs on the BCC’s legislative proposal to provide federal incentives for states to pass statewide building codes. In October 2007, Reps. Doris Matsui, D-Cal., and Mario Diaz-Balart, R-Fla., introduced, H.R.3926, the Building Code State Incentive Act of 2007. This legislation would increase the amount of federal monies available to states that enact and enforce nationally recognized statewide building codes. Specifically, it would add four percent to the money a state would be eligible to receive under current disaster relief legislation.

Another positive development occurred when Rep. Dennis Moore, D-Kan., introduced H.R. 4461, the Community Building Code Administration Grant Act of 2007. This legislation would establish $100 million for Community Development Block Grant funds to help local officials enforce building codes. While many states have strong statewide building codes, numerous local communities have complained that they do not have the money and resources to enforce them. This legislation would help those communities receive the necessary funds to enforce their codes.

NAMIC POSITION…Following the devastation from the storms of 2005, it is now clearer than ever, that states need to pass strong statewide building codes. While NAMIC continues to work on this issue at the state level, we believe that Congress can play a role in encouraging states to pass statewide building codes. NAMIC believes that Congress should pass legislation such as H.R.3926, The Building Code State Incentive Act of 2007, and H.R. 4461, the Community Building Code Administration Grant Act of 2007, which provides a financial incentive for states to adopt building codes.

NAMIC will continue to work with the sponsors of this legislation to build more awareness and momentum on this issue. NAMIC and its coalition partners are looking at opportunities in the Senate.

powered by Google

Legislative Action Network

As a "minuteman," you will be in the know at the critical moment when a call to action is necessary or when decisions are being made on issues like federal regulation of insurance, legal reform, terrorism insurance, asbestos reform and small property/casualty company taxation.

Benjamin Franklin Public Policy Award

Every two years, NAMIC presents their coveted Benjamin Franklin Public Policy Award© to lawmakers who have supported a stronger insurance market at least 75 percent of the time. This is demonstrated based on their support of NAMIC's position on certain roll call votes taken, or being a principal player/sponsor on legislation affected the property/casualty insurance industry, during the previous Congress.