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The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information technology to streamline the nation's building regulatory process to enable our construction industry "to build faster, better, safer and at less cost." How Regulatory Barriers Impact Housing Development St. Paul, Minnesota January 7-8, 2004

The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

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Page 1: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

The National Alliance for Building Regulatory Reform in the Digital Age

REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY

The use of information technology to streamline the nation's building regulatory process to enable our construction industry "to build faster, better, safer and at less cost."

How Regulatory Barriers Impact Housing Development

St. Paul, MinnesotaJanuary 7-8, 2004

Page 2: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

CONSTRUCTION'S CRITICAL ROLE IN OUR PUBLIC'S CONSTRUCTION'S CRITICAL ROLE IN OUR PUBLIC'S SAFETY AND THE ECONOMIC HEALTH OF OUR NATIONSAFETY AND THE ECONOMIC HEALTH OF OUR NATION

IT'S A LARGE PART OF OUR ECONOMY- $1.1 trillion per year industry

- 12 % of our gross domestic product

- 50 % of our national wealth is in buildings

- Provides the infrastructure for our economy

- It stimulates economic recovery and growth

- It houses where Americans live, work, and play

Page 3: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

THE CONSTRUCTION REGULATORY PROCESSTHE CONSTRUCTION REGULATORY PROCESS

EITHER

Enhances the economic development, competitiveness and public safety by ensuring safe, affordable, quality buildings; disaster resistance; and, where regulations are uniform within a region, ready response.

OR

Hinders economic development, competitiveness and public safety by causing unnecessary confusion, cost, and time delays through overlapping, duplicative, and conflicting regulations, codes, and standards.

Page 4: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

THE CONSTRUCTION REGULATORY PROCESS THE CONSTRUCTION REGULATORY PROCESS AS A HINDRANCEAS A HINDRANCE

- Restricts widespread use and market for aggregation for new products and technologies

- Adds as much as $100,000 per day in additional costs for unnecessary inspection delays

- Makes it difficult for neighboring jurisdictions to coordinate disaster protection and provide immediate disaster response assistance to each other

Page 5: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

UNFORTUNATELY, IN THE U.S. TODAY TOO MANY UNFORTUNATELY, IN THE U.S. TODAY TOO MANY JURISDICTIONS FIND THEIR REGULATORY PROCESS JURISDICTIONS FIND THEIR REGULATORY PROCESS

IS THE LATTER (HINDRANCE) NOT THE FORMERIS THE LATTER (HINDRANCE) NOT THE FORMER

THE PROBLEM?

- Over 44,000 units of state and local governments adopt and enforce construction codes and standards

- Stovepipe bureaucracies and regulatory overlap/duplication cause conflict and confusion between government, the public and the construction community, slowing down construction process, reducing competitiveness, and safety

- Lack of greater use of Information Technology (IT)- Procurements, training, and common operating standards keeping costs

for these services too high for many jurisdictions and limiting the market for software industry.

Page 6: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

TO ADDRESS THESE PROBLEMS TO ADDRESS THESE PROBLEMS THE MAY 31 - JUNE 1, 2001 NATIONAL FORUM ON BUILDING THE MAY 31 - JUNE 1, 2001 NATIONAL FORUM ON BUILDING

SMARTER IN THE DIGITAL AGE - ARLINGTON, VASMARTER IN THE DIGITAL AGE - ARLINGTON, VA

- In the summer of 2001, representatives from 41 national organizations representing the construction and information technology communities and governmental agencies from all levels of government came together to discuss these problems and see how information technology might remove these barriers to safe, affordable construction

Page 7: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

TO ADDRESS THESE PROBLEMSTO ADDRESS THESE PROBLEMS

The Forum participants gained common understanding of barriers and drafted an Action Agenda to address these problems. They also proposed the formation of a national alliance to implement the draft Agenda of reform

Page 8: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

NATIONAL ALLIANCE FOR BUILDING REGULATORY REFORM NATIONAL ALLIANCE FOR BUILDING REGULATORY REFORM IN THE DIGITAL AGE FORMED AND ACTION AGENDA ADOPTEDIN THE DIGITAL AGE FORMED AND ACTION AGENDA ADOPTED

Vision StatementUse information technology to transform the nation's building regulatory process to enable the nation's construction industry to build "faster, better, safer and at less cost."

JULY 12, 2001 - National Governors Association

Page 9: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

II - ADOPTED ACTION AGENDA II - ADOPTED ACTION AGENDA STATEMENT OF NEED AND WORK PRODUCTSSTATEMENT OF NEED AND WORK PRODUCTS

Growing demand by public and private sectors for government to operate more effectively and efficiently to both enhance homeland security and reduce regulatory time/costs creates immediate need for:

- A national coordinated effort involving all levels of government, construction, and I.T. communities to:

- Identify and share best practices - hardware, software, and restructuring of the architecture of our current regulatory system to reduce regulatory costs to construction by up to 60%

- Promote common standards for digital signatures, simple common e-permits, plans review, field inspection software, and common systems requirements that include interoperability

- Identify and obtain funding to develop an advocacy and grants program to streamline the nation's building regulatory process at all levels of government, facilitated by the more effective use of information technology

Page 10: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

III - ADOPTED ACTION AGENDA III - ADOPTED ACTION AGENDA IMPLEMENTATION PLANIMPLEMENTATION PLAN

Page 11: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

FROM FALL 2001 - FALL 2003 FROM FALL 2001 - FALL 2003 THE ALLIANCETHE ALLIANCE

Held organizational meetings of committees and task forces,

adopted work agendas, and

Page 12: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

WORK ACCOMPLISHED BY WORK ACCOMPLISHED BY THE ALLIANCETHE ALLIANCE

- Developed a matrix and placed on Alliance portion of NCSBCS website a "Listing of software currently available to state and local governments."

- Placed on website of Model streamlining processes

- With assistance from the National Association of State Chief Information Officers (NASCIO), initiated work on architecture for more efficient building regulatory systems at state and local levels of government

- Developed Business Case for Regulatory Streamlining

- Reviewed hardware being used

Page 13: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

WORK ACCOMPLISHED BY WORK ACCOMPLISHED BY ALLIANCE (Continued)ALLIANCE (Continued)

Drafted and distributed outline of the components of a secure, nationwide, state-maintained database for first responders of as-built building designs, evacuation plans, and other key contact information for critical structures

Page 14: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

OTHER ALLIANCE ACTIVITIES FROMOTHER ALLIANCE ACTIVITIES FROM

JULY 2001 - SEPTEMBER 2003JULY 2001 - SEPTEMBER 2003

- Issued annual reports to nation's governors, CIOs, state legislators

Governors attending the NGA E-Governance Task Force (above) Meeting at NGA Annual Meeting in Providence, RI on August 6, 2001 received a CD-ROM report on the formation of the Alliance

Page 15: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

OTHER ALLIANCE ACTIVITIES (Continued)OTHER ALLIANCE ACTIVITIES (Continued)

- Expanded Alliance Membership to 42

- Articles in publications / presentations at national meetings

- Meetings with White House Office of Science and Technology Policy

- Prototype streamlining projects with states of CA, KY, NY, OR, PA, VA, WA

- Developed and posted on website model procurement guidelines for state and local governments

Page 16: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

Other Alliance ActivitiesOther Alliance ActivitiesINITIATE WORK OF AFFORDABLE HOUSING TASK FORCE

- First meeting August 29, 2002

- Meeting April, 2003

- Meeting January, 2004

Page 17: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

MISSION STATEMENT FOR MISSION STATEMENT FOR AFFORDABLE HOUSING TASK FORCEAFFORDABLE HOUSING TASK FORCE

"Provide mechanism for rapid dissemination to local and state building regulators, home builders, elected officials, and the public, information on, and set of work tools generated by, the National Alliance that lower the cost of residential construction through the effective use of information technology."

The Affordable Housing Task Force will coordinate these efforts with the ongoing efforts of the task force members, including the Partnership for Advancing Technology in Housing (PATH). Initial products include: draft guide to rural and suburban jurisdictions on how to streamline their building regulatory processes, and listing of available, permitting, plans review and inspection software.

Page 18: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

EXAMPLES OF STREAMLINED REGULATORY EXAMPLES OF STREAMLINED REGULATORY PROCESSES AND SAVINGS TO COMMUNITIESPROCESSES AND SAVINGS TO COMMUNITIES

Page 19: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

Examples of Streamlined ProcessesExamples of Streamlined Processes

- One Stop Permit Process - On Line Permitting- Consolidated / Combination Inspections - IVR systems

for inspection scheduling- Hand-held devices for field inspections- Electronic plan submittals, review, and tracking

Page 20: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

Examples of Streamlined ProcessesExamples of Streamlined Processes

- Customer Oriented Culture - Pre-permit Counseling / Case Management

- Fast Track Reviews- Staff Training and Certification- Code Uniformity and Uniform Interpretation

Page 21: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

CASE STUDIES OF SAVINGS BEING ACHIEVEDCASE STUDIES OF SAVINGS BEING ACHIEVED

City of Los Angeles, California- Handled 88% increase in construction activity with only 1.5%

increase in staff

- Reduced Median wait time for permits from 2-3 hours to 7 minutes

- Reduced Plan Check time from 10 weeks to 10 days

- Reduced inspection wait time from 4-5 days to less than 24 hours

- Brought 36,000 run down properties up to code

Page 22: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

CASE STUDIES OF SAVINGS BEING ACHIEVEDCASE STUDIES OF SAVINGS BEING ACHIEVED

Milpitas, California

- Formed, "Partnership to Achieve Goals" a coalition of home builders, other construction firms to support the City's purchase, training, and use of I.T. for on-line permit applications, permit tracking, plans submittals and reviews.

- Reduced permit processing, inspection scheduling and inspection times by over 60%

- Established true one-stop process for all construction code applications - working on extending to zoning and land use

Page 23: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

CASE STUDIES OF SAVINGS BEING ACHIEVEDCASE STUDIES OF SAVINGS BEING ACHIEVED

State of Oregon - Tri-County Area (Portland)

- Developed consortium of builders, business community and regulators to develop and launch in 2003 - Governors streamlining initiative - "Building

One-Stop Process and Regulatory Streamlining Initiative."

- Drafting for use first in Tri-County - Metro Portland area a one stop process for construction approvals that uses:- Common forms & procedures- E-permitting, IVR inspection scheduling- Uniform code interpretations- Ability to share building plans between jurisdiction to facilitate disaster

response

Page 24: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

CASE STUDIES OF SAVINGS BEING ACHIEVEDCASE STUDIES OF SAVINGS BEING ACHIEVED

Fairfax County, Virginia

- Initiated program to integrate building regulatory system with zoning and land use to establish true one-stop, on-line permitting, plans review processes

- Issued first of several contracts to develop database for above system

Page 25: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

- Stakeholder Involvement (Builders, developers, financial community, community groups, public, elected officials, building regulators and zoning/planning officials)

- Form Private-Public Partnerships - Long-term Commitment to Change/Build Trust - To Keep Trust - No Surprises

KEY TO STREAMLINING SUCCESS?KEY TO STREAMLINING SUCCESS?

Page 26: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

KEY TO STREAMLINING SUCCESS?KEY TO STREAMLINING SUCCESS?

- State and local governments need to be partners with private sector

- Federal Role - Support, promote best practices/assist funding implementation

Page 27: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

ACTION AGENDA ITEMS FOR ACTION AGENDA ITEMS FOR SUMMER 2003 - SUMMER 2004SUMMER 2003 - SUMMER 2004

- Develop effective statewide and local building regulatory system architecture and share with jurisdictions (In coordination with NASCIO)

- Conduct cost/benefit analysis of Regulatory Streamlining

- Develop project to speed use of interoperable hardware and software by state and local governments

Page 28: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

THE CHALLENGES AND NEEDS ARE GREAT THE CHALLENGES AND NEEDS ARE GREAT AND TIME IS SHORT:AND TIME IS SHORT:

- HOMELAND SECURITY - PREVENTION, PREPAREDNESS, RESPONSE

- ECONOMIC RECOVERY COMPETITIVENESS

- HOUSING AFFORDABILITY

- GREATER EFFICIENCY IN GOVERNMENT

Page 29: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

TO ASSIST THE ALLIANCE IN HELPING OUR TO ASSIST THE ALLIANCE IN HELPING OUR NATION/COMMUNITIES ENHANCE PUBLIC SAFETY NATION/COMMUNITIES ENHANCE PUBLIC SAFETY

AND ECONOMIC COMPETITIVENESS :AND ECONOMIC COMPETITIVENESS :

- Share information on the National Alliance with: elected and appointed officials in your state/ local community, with your construction and information technology industries, colleagues in your agency, association, company.

- Encourage the use of streamlined processes and Alliance products in your state/community.

- Provide information to the Alliance on I.T. applications that are effective in reducing the regulatory cost of construction and enhancing public safety.

- Participate in the Alliance's Fourth National Forum on Building Smarter in the Digital Age in Salt Lake City, Utah, September 30, 2004, to learn more about what information technology can do to enhance our community's economic competitiveness and public safety.

Page 30: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

ASSIST THE ALLIANCE IN HELPING OUR NATION ASSIST THE ALLIANCE IN HELPING OUR NATION AND YOUR STATE/COMMUNITY:AND YOUR STATE/COMMUNITY:

- Join the National Alliance as a Member or Affiliate and become active on one or more of the Alliance's Task Forces

- Contact your construction community and elected officials to express your support for the funding and implementation of the National Alliance's Action Agenda

Page 31: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

PLEASE JOIN USPLEASE JOIN USIN THIS EFFORT!!!IN THIS EFFORT!!!

Page 32: The National Alliance for Building Regulatory Reform in the Digital Age REDUCING BARRIERS TO HOUSING DEVELOPMENT & AFFORDABILITY The use of information

FOR MORE INFORMATIONFOR MORE INFORMATIONON THE ALLIANCEON THE ALLIANCE

For more information on the Alliance, its Action Agenda, work products, and membership PLEASE VISIT THE NCSBCS WEBSITE: www.ncsbcs.org or contact Carolyn Fitch at NCSBCS, 703-437-0100,

extension 238 / [email protected]