PR 25-0601 — Protecting Adjacent and Adjoining Property Owners from Construction Damage Emergency Declaration Resolution of 2024

MURIELENROLLED BOWSERORIGINAL MAYORA RESOLUTION 25-409 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA January 4,9, 2024 TheTo Honorabledeclare Philthe Mendelsonexistence Chairmanof Councilan emergency with respect to the need to amend the Construction Codes Approval and Amendments Act of 1986 to require a property owner, contractor, or person applying for certain permits for construction work to demonstrate that the Districtperson’s insurance covers adjacent and adjoining property owners for loss or damage that arises out of Columbiathe Johnproposed A.construction work.

WilsonRESOLVED, BuildingBY PennsylvaniaTHE Avenue,COUNCIL NW,SuiteOF 504THE Washington,DISTRICT DCOF 20004COLUMBIA, EnclosedThat forconsiderationthis andresolution enactmentmay bybe thecited Councilas of the District of Columbia are bills entitled the “Protecting Adjacent and Adjoining Property Owners from Construction Damage Amendment Act of 2024,” the “Protecting Adjacent and Adjoining Property Owners from Construction Damage Temporary Amendment Act of 2024,” and “the Protecting Adjacent and Adjoining Property Owners from Construction Damage Emergency Amendment Act of 2024.” In addition, an accompanying “Protecting Adjacent and Adjoining Property Owners from Construction Damage Emergency Declaration Resolution of 2024”2024”. is included in this transmittal.

TheseSec. legislative measures would amend section 6a(a) of the Construction Codes Approval and Amendments Act of 1986, effective April 20, 1999 (D.C.

Law2. 12-261;

D.C.(a) The Protecting Adjacent and Adjoining Property Owners from Construction Damage Amendment Act of 2022, effective March 22, 2023 (D.C.

Official Code § 6-1405.01(a)), which requires insurance coverage for certain building permits, by adding three types of permits to the current scope of the requirement.

Specifically, the additional permits would include:

(1) alteration and repair permits pursuant to which the applicant will be engaging in underpinning or related construction activity;

(2) foundation permits;

and (3) new building permits.

This legislation will also clarify legislative requirements to allow the Department of Buildings (DOB) to promulgate rulemaking.

I urge theCouncil to take prompt and favorable action on theenclosed legislation.

If you have any questions, please contact Brian Hanlon, Director, DOB, at brian.hanlon@dc.gov or (202) 442-8935.

Sincerely, Muriel Bowser Enclosures 2 hairman Phil Mendelson at the requestfthe Mayor 5 A PROPOSED RESOLUTION 8 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA To declare the existence ofan emergency with respect to the need to amend section 6a ofthe Construction Codes Approval and Amendments Act of 1986 to require a property owner, contractor, or person applying for certain permits for construction work to demonstrate that the person's insurance covers adjacent and adjoining property owners for loss or damage that arises out ofthe proposed construction work.

RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, Thatthis resolution maye cited as the "Protecting Adjacent and Adjoining Property Owners from Construction Damage Emergency Declaration Resolution of2024".

Sec.2.

(a) The Protecting Adjacent and Adjoining Property Owners from Construction Damage Amendment Act of2022, effective March 22, 2023 (D.C.

70 DCR 15751575) ("2022(“2022 Act"),Act”), requires property owners, contractors, or persons applying for a permit for construction work to obtain liability insurance that covers adjacent and adjoining property owners for loss or damage arising outheout of the proposed work.

(b) The requirements under the 2022 Act are tied to specific typestructiontypes of construction permits issued by the Department ofBuildings.of Buildings.

However, following the enactment oftheof the 2022 Act, the Department ofBuildingsof Buildings determined that threeone existing permit requirement should be clarified to include when an applicant will be engaging in underpinning and that 3 additional permit types should be included because they involve work that has the greatest potential to cause damage or bodily injury to a neighboring property or property inhabitants.

(d) Not including these permit types from the required insurance coverage creates a significant gap in the protection that the original legislation was designed to provide and should ENROLLED ORIGINAL be remedied immediately to protect District property owners from significant loss or injury as a result of construction activity occurring at a neighboring property.

The Council of the District of Columbia determines that the circumstances enumerated in section 2 constitute emergency circumstances making it necessary that the Protecting Adjoining and Adjacent Property Owners from Construction Damage Emergency Amendment Act of 20232024 be adopted after a single reading.