On Tuesday, November 24, the Division of Local Government Services released Local Finance Notice 2020-27 jointly with the Division of Codes and Standards. It is an update to Local Finance Notice 2017-15.
Local Finance Notice 2020-27 states that “revenue earned from construction code (UCC) enforcement fees must be dedicated to UCC enforcement rather than diverted to support the general fund. Municipalities with UCC enforcement offices are required to provide an adequate staff to handle reviews and inspections in a timely manner," set limits on the permitted uses of construction code fees and revenue, and designate the usage of revenue used in shared service agreements and third-party vendor contracts. LFN 2020-27 also notes that the Division of Codes and Standards’ Office of Regulatory Affairs will conduct financial audits of Uniform Construction Code (UCC) Annual Reports to determine if a municipality is compliant with the UCC’s. If a municipality is deemed non-compliant, the Division of Codes and Standards will then issue a letter to the municipality stating what actions must be taken within 30 days to be compliant.
The Divisions hope that LFN 2020-27 will address the backlogs in UCC enforcement offices, limit the amount of revenue diverted to the general fund, and limit the burden on taxpayers.
We suggest you review this Local Finance Notice with your Administrator, Chief Financial Officer, and Construction Code Official.
Contact: Andrew LaFevre, Legislative Analyst, firstname.lastname@example.org, 609-695-3481 x116.