Rhode Island Fire Code Changes Coming in July

Rhode Island is implementing the next step in its updated fire code this July, when all existing 3-unit properties must have a hard-wired alarm system installed in order to maintain their certificates of occupancy.  This change can be traced back to the tragic fire at the Station nightclub in 2003, and follows on changes in other property types, including commercial properties, and places of assembly. 

According to the 1998 Census Bureau housing survey, 23% of housing units in Rhode Island are in 2 to 4 unit properties, with a substantial proportion of those being in 3-unit properties.  Many of these homes were built during Rhode Island's economic boom around the turn of the 20th century, as industrial growth in textiles helped the state grow from 276,000 residents in 1870 to 604,000 in 1920.  (The state's prosperity at the time, at one point reaching 4th in the US in income, also contributed to the opulent construction of our State House.)  This influx of new residents came in conjunction with a construction boom during which the majority of existing 3-unit properties were built. 

The new fire code will require hard-wired detectors for smoke and carbon monoxide (CO) for all 3+ unit properties effective 1 July 2008.  According to Nicole Bourque of HB Alarm, the planning and approval process required for these systems can take as much as a year to complete before installation can even start.  Fewer than 5% of existing 3-unit properties are believed to be compliant.  HB Alarm has established the state's first non-governmental website for fire code information at http://www.rifirecode.com . 

Rhode Island has long required a Smoke Detector Cetificate for all property transfers in order to insure safety.  Effective July 1st, all newly transferred 3-unit properties will require hard-wired systems in order to receive this certificate.  Homeowners may find funding the installation to be a prohibitive impediment to sale.  The state has not established any loan programs to assist with compliance, and, because of the current lending environment, homeowners may have difficulty tapping equity to do so.  Banks foreclosing on properties are exempted, however subsequent purchasers of those properties must complete required installations before moving into the home.

One mortgage program that will be very helpful in these transfers is the FHA 203(k) rehabilitation program.  Under the "Streamline" version of this program, homebuyers may finance the purchase of the home, along with up to $35,000 in funds for improvements to the property.  For buyers considering buying and moving into a foreclosed 3-unit home, this is a simple, straightforward option to access necessary funds.