North Carolina Faces the Effects After Republican Legislators Blocked Resilient Building Codes, Losing Millions in FEMA Funding

A year after legislative Republicans blocked the implementation of more resilient building codes, the financial consequences across North Carolina are becoming clear. Communities across the state missed out on an estimated $70 million in federal FEMA funds this year due to the Republican veto override of HB 488 in 2023. Access to affordable homeowners insurance will become more scarce in many areas as well due to Republicans and special interest blocking new resilient building codes.

"Legislative Republicans moved North Carolina backward by recklessly blocking new building codes that would require new homes to be more resilient and efficient," said Governor Roy Cooper. "As a result, it will become harder to find home insurance and we're missing out on tens of millions of dollars in federal recovery funds. That's a lose-lose for our state, particularly when storms hit."

In 2023, the General Assembly passed HB 488, blocking the implementation of new residential building codes that were previously approved by the NC Building Code Council. In the face of rising energy costs and devastating severe weather events, these code updates would have resulted in safer and more resilient homes and substantial cost savings for North Carolinians.

The building code updates would have brought North Carolina building standards in line with other states frequently impacted by hurricanes and severe weather, including Florida, Georgia, and Louisiana. Republicans in the General Assembly voted unanimously to block resilient standards after lobbying from the NC Home Builders Association, who can profit more from cheap construction at the cost of homeowners.

Governor Cooper vetoed HB 488, expressing concern that the bill made homes less safe and would cost the state millions of dollars in recovery funds. The Republican legislature overrode the Governor's veto one month later, in the middle of hurricane season.

This year, North Carolina state and local governments are set to collectively receive approximately $30 million in federal funding from FEMA's Building Resilient Infrastructure and Communities ("BRIC") program, a significant drop from the $58 million and $102 million in 2022 and 2023 respectively. HB 488 makes it impossible to update the residential codes in a manner consistent with FEMA requirements until 2031, meaning this loss of funding will worsen in coming years.

HB 488's impact is not limited to FEMA funding. Billions of dollars have been made available through the Biden-Harris Administration's Bipartisan Infrastructure Law and Inflation Reduction Act to help states update their building codes. North Carolina has missed out on its fair share because of HB 488.

Across the country, homeowner's insurance is rising rapidly as billion-dollar losses from increasingly severe natural disasters become commonplace. Recent reporting shows that, particularly in coastal communities, affordable home insurance policies are becoming harder for families to access. Updated building codes reduce losses from severe events and reduce the cost of insurance. Legislative Republicans are subjecting families in North Carolina to higher costs to benefit their chosen special interests.

Governor Cooper continues to urge legislators to undo this irresponsible block on resilient building standards.

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Related Topics:

• Infrastructure