MURIEL BOWSER MAYOR January 4, 2024 The Honorable Phil Mendelson Chairman Council of the District of Columbia John A. Wilson Building 1350 Pennsylvania Avenue, NW, Suite 504 Washington, DC 20004 Enclosed for consideration and enactment by the Council 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 202 4” is included in this transmittal. These legislative measures would amend section 6a(a) of the Construction Codes Approval and Amendments Act of 1986, effective April 20, 199 9 (D.C. Law 12-261 ; 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 the Council to take prompt and favorable action on the enclosed 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 1 2 3 4 5 6 7 8 9 10 11 12 13 A PROPOSED RESOLUTION hairman Phil Mendelson at the request of the Mayor IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 14 To declare the existence of an emergency with respect to the need to amend section 6a of the 15 Construction Codes Approval and Amendments Act of 1986 to require a property owner, 16 contractor, or person applying for certain permits for construction work to demonstrate 17 that the person's insurance covers adjacent and adjoining property owners for loss or 18 damage that arises out of the proposed construction work. 19 RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 20 resolution may be cited as the "Protecting Adjacent and Adjoining Property Owners 21 from Construction Damage Emergency Declaration Resolution of 2024". 22 Sec. 2. (a) The Protecting Adjacent and Adjoining Property Owners from Construction 23 Damage Amendment Act of 2022, effective March 22, 2023 (D.C. Law 24-339; 70 DCR 1575 24 ("2022 Act"), requires property owners, contractors, or persons applying for a permit for 25 construction work to obtain liability insurance that covers adjacent and adjoining property 26 owners for loss or damage arising out of the proposed work. 27 (b) The requirements under the 2022 Act are tied to specific types of construction permits 28 issued by the Department of Buildings. However, following the enactment of the 2022 Act, the 29 Department of Buildings determined that three additional permit types should be included 30 because they involve work that has the greatest potential to cause damage or bodily injury to a 31 neighboring property or property inhabitants. 1 2 (c) The additional permits are: 32 (1) An alteration and repair permit pursuant to which the applicant will be engaged 33 in underpinning or certain other types of construction activity; 34 (2) A foundation permit; and 35 (3) A new building permit. 36 (d) Not including these permit types from the required insurance coverage creates a 37 significant gap in the protection that the original legislation was designed to provide and should 38 be remedied immediately to protect District property owners from significant loss or injury as a 39 result of construction activity occurring at a neighboring property. 40 Sec. 3. The Council of the District of Columbia determines that the circumstances 41 enumerated in section 2 constitute emergency circumstances making it necessary that the Protecting 42 Adjoining and Adjacent Property Owners from Construction Damage Emergency Amendment Act 43 of 2023 be adopted after a single reading. 44 Sec. 4. This resolution shall take effect immediately. 45