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last updated on December 16, 2009

BUILDING CODES

THE ISSUE IS

Stronger, safer buildings for Americans and their families during natural disasters can save lives, reduce property loss, and reduce public disaster aid.

IT IS IMPORTANT BECAUSE

The Louisiana State University Hurricane Center estimated that of the $10 billion in wind damage to homes in Louisiana as a result of Hurricane Katrina, modern building codes would have spared 80 percent of the damage. 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. 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
• protect the environment from waste caused from rebuilding after disaster

Unfortunately, state standards for construction, code-related inspection, and enforcement vary widely from state to state. 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.

Stronger building codes protect lives and property. It is critical to develop federal incentives, encouraging 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 upon whether that state has adopted stronger statewide building codes.

On May 21, 2009, Representatives Diaz-Balart (R-Fla.) and Arcuri (D-NY) introduced HR 2592, The Building Code State Incentive Act. This legislation is almost identical to legislation introduced in the 110th Congress and would increase the amount of federal monies available to states that enact and enforce nationally recognized statewide building codes. Specifically, it would add 4 percent to the money a state would be eligible to receive under current disaster relief legislation. NAMIC has worked with Congress and Transportation and Infrastructure Committee Chairman Oberstar (D-Minn.) to include the Building Code State Incentive Act as part of HR 3377, the Disaster, Response, Recovery, and Mitigation Enhancement Act. This legislation received unanimous support upon passage out of the Transportation and Infrastructure Committee on November 5, 2009.

LEGISLATIVE HISTORY

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 to develop federal legislation that would provide incentives to states to create or better enforce statewide building codes.

After careful consideration, the BCC decided the best way to provide incentives to 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 the creation of a separate financial incentive for states that have adopted and enforce 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 could be very desirable

Following the 2005 hurricanes, Congress has been looking into possible solutions to prevent further loss in future events. During the 110th Congress, the BCC actively educated members of Congress and their staffs on a legislative proposal to provide federal incentives for states to pass statewide building codes, resulting in the introduction of legislation in October 2007. Reps. Doris Matsui, D-Calif., and Mario Diaz-Balart, R-Fla., introduced, H.R.3926, the Building Code State Incentive Act of 2007. The Building Code State Incentive Act was included as part of H.R. 6658, the Disaster Response, Recovery and Mitigation Enhancement Act of 2008, which was passed out of the House Transportation and Infrastructure Committee in July of 2008.

NAMIC POSITION

America needs stronger, safer buildings. While many states have responded by adopting nationally recognized statewide building codes, many have not. We believe that Congress can play a role in encouraging states to pass statewide building codes, and that legislation should be passed to provide financial incentives for states to adopt nationally recognized building codes.

CONTACT INFORMATION

For more information please contact Kathy Mitchell, federal affairs director, at (202) 580-6744 or kmitchell@namic.org.