Louisville Green Building Ordinance Could Cost Marshall Fire Victims Tens Of Thousands Of Dollars In Additional Rebuilding Fees
UPDATE: Louisville City Council Proposes A Rollback On Building Codes for Fire Victims
LOUISVILLE, Colo. (CBS4) — Victims of the Marshall Fire in Louisville could face tens of thousands of dollars in additional rebuilding fees if a green building ordinance is upheld by the city council and the mayor. A recently-enacted building ordinance, approved before the historic blaze, requires new build homes to be held to a more protective and eco-friendly standard than homes previously built in Louisville.
While many residents, including some who lost their homes, support the ordinance, victims of the fire say it will cost them on average at least $70,000 more to rebuild their homes, a cost dramatically impacting the already underinsured.
"The majority of the people (who lost their homes) are $200,000-to-$300,000 under the water right now," said Steven Carter, a victim of the blaze. "And as the cities or counties add more layers of testing or code requirements, it ends up costing us more money."
Carter told CBS4's Dillon Thomas he supports the ordinance at its core and believes it could be a positive asset to the community as a whole. However, he said the cost to cover the improved codes is a burden to most who lost their homes.
According to Louisville City Council member Maxine Most, a quiet majority of people in Louisville, including many fire victims, still support the ordinance. However, Most said many are being bullied or pressured to not vocalize their support.
"I think what they are trying to do is a good thing. They are trying to make the houses safer and greener. I think that is good. When you add that on top of the financial strain we are already under, I think it is too much to ask," Carter said.
According to the Home Builder's Association out of Denver, the average turnkey home in the burn scar was worth $300 to $325 a square foot in 2021. That's, on average, $35 more per square foot than just three years prior, before the green building ordinance was enacted.
Most said a drastic majority of victims were underinsured, something she encouraged the Colorado Attorney General's office to investigate. Carter said he was one of those underinsured.
Just months before the fire, Carter's family completed a remodel of their home. After the project was completed he asked his insurance agent to visit his home and make sure he was properly insured. He claimed the adjuster told him his house was properly covered.
"I wanted to make sure we had enough insurance to cover it. It turns out we are not even close," Carter said.
Carter said his policy will now leave him roughly $200,000 short of the funds he needs to rebuild. And, the green building codes would likely add nearly $100,000 extra to that debt.
Some homeowners had policies that covered new building code ordinances fully. Carter is one in the majority of victims who had a policy that only covered a percentage. His policy will only cover 5% of the home valuation when it comes to the new ordinance's costs. So, he says he is likely still on the hook for around $70,000 of the new building code fees alone.
Some contractors told CBS4 they felt upholding the ordinances would jeopardize some of their clients from being able to fully rebuild. Some have chosen to build smaller homes to offset their financial losses.
"It is not fair," said Greg Sink, owner of Power Points LLC Roofing & Exteriors. "I wish they would work out something where it would be fairer to the homeowner. In this scenario it is not their fault, this is an act of God. Yet it falls back on them as the policy and homeowner."
Most believed it was still best to uphold the ordinance. She wrote to CBS4 saying many of the victims would still be unable to afford the complete remodel of their homes even if the ordinance was voided, purely because they are already underinsured.
"Should we rescind the IECC 2021 codes, it would not create the certainty that community members are looking for. For many, who are underinsured, there is no clear financial path to rebuilding - even without meeting the IECC 20221 codes," Most wrote. "The root cause is a massive underinsurance problem that apparently is not prohibited under Colorado law and is at a scale unlike anything seen in previous natural disasters in the US."
Most said the council is still working to secure further funding assistance for debris removal while also offering voided zoning fees and more.
"It is a fantastic place to live and we all want to come back. But, the obstacles are starting to grow," Carter said.
