D.C. Law 24-339. Protecting Adjacent and Adjoining Property Owners from Construction Damage Amendment Act of 2022.
AN ACT
To amend section 6a of the Construction Codes Approval and Amendments Act of 1986 to require a property owner, contractor, or person applying for specific permits for construction work to demonstrate that his or her insurance will insure adjacent property owners for loss or damage that arises out of the proposed construction work.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited as the "Protecting Adjacent and Adjoining Property Owners from Construction Damage Amendment Act of 2022".
Sec. 2. Section 6a(a) of the Construction Codes Approval and Amendments Act of 1986, effective April 20, 1999 (D.C. Law 12-261; D.C. Official Code § 6-1405.01(a)), is amended by adding a new paragraph (2A) to read as follows:
"(2A)(A) The Building Code Official shall require, for permits covered pursuant to subparagraph (B) of this paragraph, that the property owner, contractor, or person applying for the permit ("applicant"):
"(i)(I) Demonstrate, to the satisfaction of the Building Code Official, that his or her insurance includes coverage against claims for injuries to persons or damages to property from all adjacent and adjoining property owners and lawful occupants of the properties for risks of loss, damage to property, or injury to or death of persons arising out of or in connection with the performance of the work proposed to be performed under the permit.
"(II) The insurance shall be in an amount per occurrence and in the aggregate as specified by the Mayor through rulemaking pursuant to subparagraph (D) of this paragraph; or
"(ii)(I) If applicant's insurance is not sufficient to meet the requirements of sub-subparagraph (i) of this subparagraph, then the applicant must either amend his or her insurance policy so that the policy complies with sub-subparagraph (i) of this subparagraph or obtain additional insurance against claims for injuries to persons or damages to property from all adjacent and adjoining property owners and lawful occupants of the properties for risks of loss, damage to property, or injury to or death of persons arising out of or in connection with the performance of the work proposed to be performed under the permit.
"(II) Additional insurance shall be of a kind and in an amount specified by the Mayor through rulemaking pursuant to subparagraph (D) of this paragraph.
"(B) The following permits shall require insurance pursuant to subparagraph (A) of this paragraph; provided, that the requirements shall apply only to permits issued 30 days after the adoption of emergency or final rules issued by the Mayor pursuant to subparagraph (E) of this paragraph:
"(i) An addition, alteration, and repair permit pursuant to which the applicant will be engaging in construction at the property line or on the party wall of an adjacent or adjoining property;
"(ii) A demolition permit;
"(iii) An excavation permit;
"(iv) A raze permit; and
"(v) A sheeting and shoring permit.
"(C)(i) The applicant for a permit for which insurance is required under subparagraph (B) of this paragraph shall:
"(I) Submit proof of insurance to the Department before the issuance of the permit;
"(II) Demonstrate, on a form promulgated by the Department, that the insurance meets the requirements of subparagraph (A) of this paragraph; and
"(III) Maintain the required insurance for the duration of the permit and any renewals of the permit. If the insurance expires, is cancelled, or otherwise terminates, the applicant shall immediately notify the Department, and, when applicable, provide proof of new or renewed insurance that satisfies the requirements of subparagraph (A) of this paragraph.
"(ii)(I) If, at any time, the insurance required by this paragraph is found to be absent or non-compliant by the Building Code Official, the Department shall issue a stop work order relating to the permit for which insurance is required.
"(II) The stop work order shall remain in place until the permit holder provides proof of new or renewed insurance that satisfies the requirements of this paragraph.
"(D) For purposes of this section, the term:
"(i) "Adjacent property" means any privately held property (all or a portion thereof) within 30 feet of a property line of the real property for which the permit is applied; provided, that the adjacent property is separated by an alley or public space from the real property for which the permit is applied.
"(ii) "Adjoining property" means any privately held real property that shares a property line with real property for which the permit is applied.
"(E)(i) The Mayor shall issue rules to implement this paragraph, pursuant to the authority provided in
"(ii) Rules issued pursuant to this subparagraph shall consider current standard construction insurance rates from at least 6 insurance providers licensed and registered with the Department of Insurance, Securities and Banking to determine appropriate rates of insurance for applicable construction permits in subparagraph (B) of this paragraph. Rates collected from providers pursuant to this subparagraph shall be published in the notice of rulemaking.".
Sec. 3. Fiscal impact statement.
The Council adopts the fiscal impact statement in the committee report as the fiscal impact statement required by section 4a of the General Legislative Procedures Act of 1975, approved October 16, 2006 (120 Stat. 2038; D.C. Official Code§ 1-301.47a).
Sec. 4. Effective date.
This act shall take effect following approval by the Mayor (or in the event of veto by the Mayor, action by the Council to override the veto), a 30-day period of congressional review as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of Columbia Register.
