Legislature(2017 - 2018)BARNES 124
01/25/2017 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Presentation on Residential Building Codes By: Andrew Spinelli, Ak State Home Building Association; John Anderson, Ak Housing Finance Corp | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
January 25, 2017
3:15 p.m.
MEMBERS PRESENT
Representative Sam Kito, Chair
Representative Adam Wool, Vice Chair
Representative Andy Josephson
Representative Louise Stutes
Representative Chris Birch
Representative Gary Knopp
Representative Colleen Sullivan-Leonard
MEMBERS ABSENT
Representative Bryce Edgmon (alternate)
COMMITTEE CALENDAR
PRESENTATION ON RESIDENTIAL BUILDING CODES BY: ANDREW SPINELLI,
AK STATE HOME BUILDING ASSOCIATION; JOHN ANDERSON, AK HOUSING
FINANCE CORP
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
ANDRE SPINELLI, Co-Chair
Legislative Committee;
Past President
Alaska State Home Building Association (ASHBA)
Anchorage, Alaska
POSITION STATEMENT: Gave a presentation on building codes in
Alaska.
JOHN ANDERSON, Director
Research & Rural Development
Alaska Housing Finance Corporation (AHFC)
Anchorage, Alaska
POSITION STATEMENT: Offered details on residential building
codes.
ACTION NARRATIVE
3:15:47 PM
CHAIR SAM KITO called the House Labor and Commerce Standing
Committee meeting to order at 3:15 p.m. Representatives Wool,
Knopp, Sullivan-Leonard, Stutes, Josephson, and Kito were
present at the call to order. Representative Birch arrived as
the meeting was in progress.
^PRESENTATION ON RESIDENTIAL BUILDING CODES BY: ANDREW SPINELLI,
AK STATE HOME BUILDING ASSOCIATION; JOHN ANDERSON, AK HOUSING
FINANCE CORP
PRESENTATION ON RESIDENTIAL BUILDING CODES BY: ANDREW SPINELLI,
AK STATE HOME BUILDING ASSOCIATION; JOHN ANDERSON, AK HOUSING
FINANCE CORP
3:16:38 PM
CHAIR KITO announced that the only order of business would be a
presentation about residential building codes.
CHAIR KITO stated that at the Governor's Housing Summit in 2015,
there was a conversation about statewide residential building
codes. Currently in Alaska, some delegated jurisdictions accept
responsibility for administering building codes within their
municipal boundaries. In the rest of the state there are not
any enforced building codes, unless enforced by organizations
that fund, grant, or construct facilities. He stated that if
someone wants to build his/her own house, that would still be
possible, but if the house is being sold, mortgage lenders lack
confidence, assurance, or knowledge that the electrical and
plumbing work has been done in accordance with a building code.
In order to offer a loan for a property, the mortgage lenders
must know that information.
3:19:24 PM
ANDRE SPINELLI, Co-Chair, Legislative Committee; Past President,
Alaska State Home Building Association (ASHBA), gave a
presentation on building codes in Alaska. He stated residential
business codes encompass all aspects of building construction,
from simple plumbing standards to complex energy efficiency
upgrades. The problem is that Alaska currently has no statewide
residential building codes. Alaska's structure of building
codes is confusing; multiple agencies adopt parts of various
building codes and energy standards, but there are overlaps,
gaps, and conflicts. There is no single place where you can
find a comprehensive overview. He remarked:
At present time the [Department of Labor & Workforce
Development] adopts commercial and residential
electrical and plumbing codes, but the Department of
Public Safety adopts fire, life-safety, and mechanical
codes for commercial structures, and establishes a
residential fire alarm and carbon monoxide code. The
Department of Education, Alaska Housing Finance
Corporation (AHFC), and the Department of
Transportation and Public Facilities (DOT&PF) are all
tasked with adopting and applying energy efficiency
standards for either commercial or residential
buildings that fall under their jurisdiction. Many
municipalities adopt comprehensive sets of codes that
apply to both residential and commercial buildings,
however, there is no formal mechanism for coordination
between these entities to ensure that codes are not
duplicative [or do not] have gaps or conflicts.
He stated that as a result, government agencies must spend more
time and expense developing their own codes, while contractors
and citizens face the burden of navigating the resulting tangle
of regulations. He offered an example of building a fourplex in
Palmer or Anchorage, and wanting to build the same fourplex in
Wasilla, where there is not a building code, then falling under
the state Fire Marshall's jurisdiction, which does not accept
the International Residential Code (IRC). Therefore identical
buildings would fall under separate codes.
3:22:56 PM
MR. SPINELLI offered a solution supported and encouraged by the
Alaska State Home Building Association for several years, which
is for the State of Alaska to adopt a baseline residential
building code. He stated the recommendation is to model the
implementation and enforcement of a statewide code after AHFC's
use of the IRC. The AHFC adopts the IRC but adds amendments for
local conditions. The IRC has one book that contains all the
codes required for one- and two-family homes and townhouses.
The energy chapter in the IRC book is the same energy wording
that AHFC adopts and uses for its current energy code for homes
that must meet the AHFC code. He said that builders are
familiar with this system and its track record of addressing
different costs and circumstances in all the different regions
across the entire state. AHFC uses inspectors that do the plan
review and inspect the construction of the building - a process
that has been in place for many years. He stated that the
process works well and allows for the amount of flexibility that
Alaskans seem to require. He remarked:
When it comes to applying residential building codes,
the AHFC model acknowledges that one size does not fit
all in Alaska. Most of the members of the House Labor
& Commerce [Standing] Committee represent communities
that have municipal governments that have adopted
building codes, but there are many legislators who
represent regions where there are no local codes, and
there is an attitude that they don't want the
government to tell them whether and/or how they should
build a house.
MR. SPINELLI stated that the membership of the Alaska State Home
Builders Association appreciates the sentiment of not wanting
government to force anything on anyone, and clarified that is
not the objective of the association. He remarked:
Adopting a statewide building code is about
recognizing the importance of building safely,
effectively, and efficiently. When there is no
building code, homeowners are left to fend for
themselves in a buyer-beware market.
3:26:20 PM
MR. SPINELLI asked the committee members to help the association
with the proposed legislation. He stated the current and past
administrations have stated they support the concept but thought
the legislation wouldn't pass the legislature; and the
legislature has stated concern for introducing a bill that won't
get support from the administration.
He asked the committee to work with AHFC and all stakeholders to
develop a reasonable proposal to adopt a statewide residential
building code and energy efficiency standard. He stated that
the association would like to see a move towards the drafting of
legislation, and he recognized it might take longer than this
session. In the past, ASHBA created a board with builders as
members, adopted a code, and set up a website to apply for
building permits and choose inspectors. This shoestring,
voluntary program was aimed to keep things minimal.
3:28:01 PM
REPRESENTATIVE BIRCH asked if the standard would carry through
rural and urban areas of the state, and if the objective of the
proposal is to adopt a code at the state level to fill in the
voids of areas with no applicable overarching code.
MR. SPINELLI stated that he knows that Alaskans can't be told
that every shelter built must meet a building code. The final
outcome hasn't been determined. The idea is for homes to be
financed by a bank that looks to a standard; in some areas there
is no standard. Certain agencies see a gap in enforcement and
are operating beyond the legal scope of what their department
should be doing. The proposal would establish a baseline to say
if a person is building a house in Alaska and is getting
financing or going through an inspection process, then this is
the code that should be met.
3:30:41 PM
REPRESENTATIVE SULLIVAN-LEONARD asked if the committee will see
legislation coming forward on this issue and what the fiscal
note would look like.
3:31:03 PM
CHAIR KITO responded that this meeting is for the committee to
collect information on the situation and problem, and see if
there is something to be done through legislation. Then the
committee will discuss if it is worthwhile to provide
legislation to support this idea. He expressed hope that there
will be a bill at some point, but he hopes to get information in
the current meeting to drive the direction of such legislation.
3:31:43 PM
REPRESENTATIVE JOSEPHSON asked about the National Electrical
Contractors Association (NECA) electrical standards, which are
usually used as a model.
MR. SPINELLI responded that what gets adopted is confusing. He
explained that there are electrical and plumbing codes that are
adopted by the state that apply to residential construction, but
there are no mechanical or building codes adopted by the state
that apply to residential construction. Lots of places in
Alaska have a fleet of codes that apply, but several areas don't
have a code, and in areas without codes some agencies have
adopted some, but not all codes. He stated there is a lot of
confusion and little to no enforcement. He mentioned that he
chooses to build to a code because of liability reasons.
3:33:36 PM
REPRESENTATIVE JOSEPHSON mentioned House Bill 81, sponsored by
Representative Tilton during the Twenty-Ninth Alaska State
Legislature, which allowed any Alaskan to build an owner-
occupied home, but would not allow two owner-occupied homes
within a two or three year period. He asked if that bill might
be part of the solution to ensure quality.
MR. SPINELLI stated his belief that the two issues are closely
related. A statewide building code and statewide record of who
built and inspected each structure address the same issue. Mr.
Spinelli offered his understanding that the attorney general has
said the current law is too vague to enforce. House Bill 81
attempted to clarify that law. He believes a statewide building
code could help keep some of that from happening.
3:35:25 PM
REPRESENTATIVE KNOPP offered his recollection that there were
previous codes he believed everyone "operated under." He asked
if the nation operates under the International Residential Book
now.
MR. SPINELLI stated he has worked under a few previous codes.
He detailed the International Code Council (ICC), which has the
international building codes for commercial, international
mechanical, as well as its own plumbing, electrical, and energy
code. Most of what is used is the international building code,
the international residential code, and the international energy
code. He offered his understanding that the plumbing and
electrical trades have lobbied to stick with the preferred older
codes, the National Electrical Code (NEC) and Universal Plumbing
Codes (UPC). He gave his understanding that most of the country
has switched to the international code, but in some areas
plumbing and electrical trade unions have opted out and stuck
with a different code.
3:37:52 PM
CHAIR KITO stated John Anderson from Alaska Housing Finance can
answer questions about the codes themselves.
REPRESENTATIVE KNOPP asked if Mr. Spinelli is advocating for
every trade to adhere to codes or a consolidation of all codes.
He asked if the proposal is to ensure that everyone builds to
the codes that are in place today. He asked if the organization
wants every municipality to adopt the same code.
MR. SPINELLI stated that every jurisdiction he has dealt with
has used the international code, and some jurisdictions might
use something else, but the [ASHBA] supports the International
Residential Code. The International Residential Code covers
one- and two-family dwellings, duplexes, and townhomes. Mr.
Spinelli stated he ran into issues with the Fire Marshall in
Wasilla about the area of code that designates the difference
between connected single family homes and fourplexes. He
emphasized the confusion is so bad that the state Fire Marshall
now has a radio advertisement stating that builders must talk to
them before building a fourplex.
3:40:28 PM
CHAIR KITO asked if the aforementioned volunteer website is
still working.
MR. SPINELLI stated he does not think the website is still
active; it lasted for about a year and a half and then "fizzled
out."
3:41:30 PM
REPRESENTATIVE WOOL asked if, in areas that don't have a code,
authority defers to the Fire Marshall's code, and he asked what
code the Fire Marshall uses.
MR. SPINELLI responded that there is no a code for one- and two-
family dwellings. However, a fourplex is considered a
commercial building by the local Fire Marshall's office, which
will regulate it because of that classification. In areas
outside the state there is a building code for commercial
buildings, but not something for one- and two family-residential
structures.
3:43:24 PM
JOHN ANDERSON, Director, Research & Rural Development, Alaska
Housing Finance Corporation (AHFC), stated that AHFC is a public
corporation that provides housing, finance, and energy programs
and pays dividends back to the state. The mission of the
corporation is to provide Alaskans with access to safe, quality,
and affordable housing. The expertise at AHFC includes bonds
and financing, a variety of loan programs, distribution of
federally funded tax credits and state dollars, public housing
in statewide avenues regarding vouchers and things of that
nature, and energy programs.
MR. ANDERSON referenced a PowerPoint presentation, entitled
"Alaska Building Codes," which covers a brief history of
building codes, the AHFC's situation regarding building codes,
benefits of building codes for AHFC and consumers, AHFC building
code compliance process, and previous work on building codes.
Referring to slide 3 and 4, he discussed the housing market
crash in the late 1980s that resulted in approximately 25,000
foreclosures. Close to one billion dollars was spent to
retrofit homes to bring them up to code, which lead to statutory
placement of standards regarding building codes and energy
efficiency standards within AHFC under AS 18.56.300 and AS
46.11.040.
3:45:57 PM
MR. ANDERSON stated AHFC currently operates under the 2012 IRC,
which includes: the Alaska Housing Building Energy Efficiency
Standard (BEES), which he said is the same as Chapter 11 of the
IRC code, and Alaska specific amendments to the code allow for
regional and geographic variability. As shown on slide 5, he
listed benefits of having building codes, including: public
health and safety, quality, affordability, cost savings, and
investment value protection. He remarked, "We believe that
building right at the beginning ensures a building's quality,
safety, and energy performance for years to come."
MR. ANDERSON referred to page 6 of the presentation, which
covers AHFC Building Code Compliance Process. The forms used
are called PUR 101 and PUR 102, and Mr. Anderson noted there is
no lasting definition of PUR, just a designation for the forms.
The PUR 101 documents and certifies compliance with minimum
energy efficiency standards and is completed by an energy rater
through AHFC's modeling software. The PUR 102 relates to the
inspections required for compliance with minimum building
standards - the structural components - and are completed by a
third party certified by ICC. Currently AHFC has 14 different
jurisdictions that are approved for authority that have adopted
codes equal to or more stringent than AFHC's codes. In those
areas, AHFC defers to the local jurisdiction and accepts a
certificate of occupancy (CO) from the approved jurisdiction in
lieu of PUR 102.
MR. ANDERSON referred to slide 7 and stated that in the past 5
years, AHFC has done a lot of work with Cold Climate Housing
Research Center (CCHRC), Renewable Energy Alaska Project (REAP),
and the federal Department of Energy. This work includes new
documents regarding a strategic plan, a construction code gap
analysis, and a state-wide code analysis of existing statutes
and regulations. He summarized his presentation as an update of
where AHFC exists within the codes as required by statute. He
remarked, "This is only in effect when it pertains to Alaska
Housing [Finance Corporation] financing, and our programs and/or
our projects."
3:50:29 PM
CHAIR KITO asked if AHFC requires the 2012 residential code for
anything funded through AHFC. He also asked if that creates a
disparate system where some houses are being constructed in
accordance with the 2012 code outside of the delegated
jurisdictions and some are not.
MR. ANDERSON stated that is correct, but he is not certain of
the number. There is construction happening outside of AHFC's
knowledge, some of which is following the process for future
sale. Following the process now is a lot easier than coming in
after and trying to meet the standard.
3:51:48 PM
REPRESENTATIVE BIRCH asked for Mr. Anderson's sense of the costs
associated with inspection and compliance with the code, and
asked if inspections are administered through AHFC.
MR. ANDERSON stated that AHFC does not administer [the
inspections]; AHFC has a "private public partnership" with the
entity that performs the inspections. That entity charges
market value for its services. He offered his understanding
that the process to receive certification through the PUR 101
costs roughly between $500 and $1,000; PUR 102 or the CO
inspection process costs roughly $2,000-$3,000 and involves
multiple visits throughout the building process.
REPRESENTATIVE BIRCH responded that he thinks the objective is
well intended. He stated his concern for the cost.
3:54:48 PM
REPRESENTATIVE JOSEPHSON asked if this proposal has been vetted
enough that [legislation] should be prepared this session, in
Juneau, by Legislative Legal and Research Services attorneys.
MR. ANDERSON stated his belief that a lot of work has been done.
Notwithstanding that, he said he is not sure if there is a black
and white answer. The governor's housing summit presented
solutions for consideration. He stated he is unsure if the
issue is simple enough to have a bill drafted. The AHFC has not
been involved in any discussions about what a bill would look
like.
REPRESENTATIVE JOSEPHSON stated that policy calls must be made.
He gave an example: If someone built something way off the grid,
then there might be a different expectation of conformity to
standards than elsewhere.
MR. ANDERSON agreed. He stated that considerations would be
made for remote, extreme remote, and recreational properties,
and all variables need to be discussed.
3:57:36 PM
CHAIR KITO asked if there is an upcoming plan to update the
residential code adopted by AHFC from 2012.
MR. ANDERSON responded that AHFC reviewed the 2015 IRC code, and
the board elected not to update [the standards] until 2018 at
the earliest.
3:59:13 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor & Commerce Standing Committee meeting was adjourned at
3:59 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Residential Building Codes Presentation-AHFC 1.25.17.pdf |
HL&C 1/25/2017 3:15:00 PM |