Proposition 10: A Threat to All Property Owners and Investors
BREAKING NEWS: Mayor’s retrofitting plans leave property owners on shaky ground
Mayor Garcetti proposed the most ambitious seismic safety regulations in California’s history on Monday, calling for a plan that would require property owners to retrofit thousands of vulnerable buildings.
The conversation about retrofitting is not a new one – for over a year, Azzi Advisors has reported on the debate over retrofitting regulations between policy makers and property owners. The difference, this time around, is the mayor’s clear push for action.
“The time for a plan for retrofits is now,” the mayor said. “I think at the beginning of this, there was a hesitance — you know, ‘Why don’t we just do a general recommendation? No mandates.’ But to me, that was unacceptable.”
Garcetti’s plan calls for thousands of soft-story, wood-frame buildings to be retrofitted within five years and hundreds of concrete buildings to be strengthened within 30 years. What daunts property owners is the overwhelming retrofitting costs – frequently ranging from $60,000 for a modest wood apartment building to more than $1 million for large, concrete buildings.
With property owners hesitant to budge, the mayor suggested tax breaks for businesses that retrofit buildings; a five-year exemption from the city’s business tax for firms that move into newly retrofitted buildings; and helping owners of wood buildings get access to private lenders.
But can buildings actually be retrofitted within five years? That’s the question owners of wood, soft-story buildings have asked. Beverly Kenworthy of the California Apartment Assn. said the goal could be unrealistic, considering the thousands of wood soft-story buildings in the city.
As regulations move closer to the edge, be sure to know your options before costly mandates go into effect and shake up your business. Speak with an Azzi Advisor today to determine your best move.
Read more from The Los Angeles Times.
