LA looks for ways to help property owners finance seismic retrofits - Soft Story Advisors

LA looks for ways to help property owners finance seismic retrofits

Seismic retrofits are required in roughly 15,000 buildings citywide must undergo improvements

For years, Angelenos have heard that the “big one” is coming. But are buildings able to withstand 6.7 or greater magnitude earthquake? And if they are, will the cost of retrofitting them get passed directly to tenants?

The Los Angeles City Council is exploring ways to help property owners finance seismic retrofits this week, the Los Angeles Times reported.

The retrofits are required by law in roughly 15,000 buildings.

Retrofits can cost $130,000 for wood-frame buildings and millions of dollars for larger concrete structures. Some property owners are selling buildings rather than put in the money to retrofit them.

Retrofits of wooden structures must happen in seven years and concrete building retrofits must happen in 25 years. L.A. has cost-recovery programs for owners, but no upfront financial assistance, according Councilman Mitchell Englander.

Funding may also come from the city’s Affordable Housing Trust Fund, the Times reported.

Last year, Santa Monica approved a seismic retrofitting plan, which requires improvements in roughly 2,000 buildings. [LAT] — Hannah Madans

About Us

Real Estate and Business Veteran, Gordon Myers founded Soft Story Advisors out of the real need he witnessed daily, in the field.

Building Owners are stressed and concerned with hiring the best contractor and/or engineer to comply with various city ordinances because they know that a bad decision can be a very expensive and painful experience.

Licensed as a Realtor in 1988, Gordon has been actively buying, selling, developing, managing and investing in real estate and can easily recognize a one-sided deal vs. a good, fair one!

He immediately recognized the opportunity and foresaw the chaos when the Ordinance came out, requiring that approx. 12,500 city-identified, multi-family dwellings do the necessary work to support their “soft story,” buildings to better withstand a significant earthquake.

Lessons were learned from Northridge in 1994, and again in Mexico in 2017, providing evidence that Soft Story Buildings are more likely to collapse with any lateral movement during a strong earthquake.