COASTAL BUILDING CODES AND HURRICANE DAMAGE Carolyn A. Dehring* University of Georgia and Martin Halek University of Wisconsin - Madison May 11, 2012 * Terry College of Business, Department of Insurance, Legal Studies, and Real Estate, University of Georgia, 206 Brooks Hall, Athens, GA 30602, phone (706) 542-3809, FAX 706- 542-4295,
[email protected] The authors are grateful to the Honorable Kenneth M. Wilkinson, CFA, Lee County Property Appraiser, Lee County, Florida, for data, and especially to Jim Sherron. We thank Chris Jones for his coastal engineering insights. We also thank Peter Colwell, Ed Coulson, Chris Dehring, Jim Kau, Olivia Mitchell, Harold Mulherin, Henry Munneke, and Tony Yezer for helpful comments. We acknowledge financial support provided by the Terry-Sanford Research Award and the National Science Foundation DEB-0823293 and DEB-0218001 as part of the ongoing research at Coweeta LTER. JEL Classification: H59, H76, Q54 Abstract We explore whether federal and state level changes to coastal building standards are effective in mitigating losses to coastal property following Hurricane Charley. We find properties built seaward of and after the reestablishment of the Coastal Construction Control Line, and those built under the National Flood Insurance Program and located in an A-Zone, had more damage relative to similarly located structures built before these regulatory changes. We show the NFIP regulations allowed for weaker foundation requirements and lower elevations relative to the earlier county code. This likely led to greater flood damage, as supported by analysis of individual structural components. 2 1. INTRODICTION In the United States, government limits the bundle of rights associated with real property ownership through building codes, also referred to as construction codes.