Washington–The House Financial Services Committee voted out legislation yesterday to help local authorities develop and enforce building codes.

By a voice vote, the panel gave its approval to the Community Building Code Administration Grant Act, or H.R. 4461.

Sponsored by Rep. Dennis Moore, D-Kan., the bill authorizes $100 million over five years to state and local authority for building codes development and enforcement, with individual jurisdiction grants capped at $1 million.

An original draft of the bill included $100 million annually, but Rep. Moore said at the committee markup of the bill that the larger number was an error that he corrected through an amendment.

There are currently no federal programs to provide specifically for building codes, Rep. Moore noted at the markup.

While local governments can seek funding to help with enforcement through the Federal Emergency Management Agency or through federal block grants, Rep. Moore noted that there is a “highly competitive” effort for such funds, and that they are generally used for infrastructure improvement projects.

As a result, he said, states and local governments are forced to rely on such means as building permit fees to fund enforcement, leaving many enforcement agencies underfunded and understaffed.

“This means that codes on the books can't be enforced,” he said, leading to greater vulnerability and expense for taxpayers and property owners.

Several insurance industry groups offered their support for the bill, noting that stronger building codes are likely to reduce the damages and expense of a natural catastrophe.

“Every year, the federal government and the private sector pay billions in disaster relief and in the rebuilding of communities following natural disasters,” said Marc Racicot, president of the American Insurance Association. “Taking action before the earthquake, or hurricane, or tornado is the wise and prudent thing to do to help mitigate the damages.”

David Sampson, president and chief executive officer of the Property and Casualty Insurers Association of America, also pointed to the role of building codes in mitigating future losses.

“We know how to construct buildings to minimize the losses that individuals and communities face from natural disasters, and we know that mitigation techniques are cost- effective,” he said, citing a 2005 study by the National Institute of Building Sciences.

The institute's research found that every dollar spent on mitigation at the federal level saves four dollars in disaster assistance. “In short, an ounce of prevention is worth a pound of cure, and this preventive legislation is a wise investment that will save taxpayers money in the future,” Mr. Sampson added.

The National Association of Mutual Insurance Companies also praised the bill for easing the burden on local communities.

“Strong building codes are crucial to protect homes, businesses and lives during natural catastrophes, but cities and counties often lack the resources to enforce them. This legislation will provide much needed funds to encourage states to promote safer buildings,” said Justin Roth, NAMIC senior federal affairs director.

Agents also offered their support and praise for the bill, and its passage by the committee.

“As the representatives of the independent insurance agents who sell homeowners' insurance, we feel it is important that Congress provides incentives for communities to put in place strong building codes,” says John Prible, assistant vice president for federal government affairs for the Independent Insurance Agents and Brokers of America.

Rep. Barney Frank, D-Mass., chairman of the Financial Services Committee, said the bill would be eligible to be brought to the House Floor under a suspension of the rules. Under suspension, which is typically used for widely supported, noncontroversial legislation, debate on the measure would be limited to 40 minutes, split between supporters and opponents, prior to a vote.

Special Reports /

House Moves Bill Aiding Building Code Enforcement

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