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Louisiana IBTS: The Importance of Act 12

Why The Building Code Is Important In Louisiana

It is estimated that Hurricanes Katrina and Rita together caused more than 45 billion dollars of damage. This is more than the Northridge Earthquake (1994, 17 billion), Hurricane Andrew (1992, 25 Billion), and the Mount St. Helens Eruption (1980, 1.1 billion) combined.

As a result of the devastation left in the wake of these hurricanes, insurance companies will not cover homes in Louisiana that are not in compliance with ICC building codes. If insurance is not available, lending institutions cannot create mortgages for individual homebuyers, making real estate purchases unavailable.

The Importance Of Code Compliance

  • Life Safety: Uniform safety standards for all Louisiana families
  • State Law: Act 12 mandates that all jurisdictions enforce the code
  • Insurance: Cost and availability of coverage
  • Financing: No Insurance = No Mortgage
  • Economic Impacts: Housing Starts, the leading indicator of economic health, depend upon home mortgage financing

Further Information On Act 12

For more information, you may view the complete text of Act 12 here on our website; or visit the Web Portal to the Louisiana State Legislature, where you can view the current version and previous versions, along with all other information pertaining to the Act, by searching for "Act 12" from their 2005 1st Extraordinary Session page.