Proposition 10: A Threat to All Property Owners and Investors
Los Angeles pushes to retrofit “soft-story” apartment buildings.
Will your building sustain the next earthquake?
That’s the question filling conversations among Los Angeles policymakers. Discussion swirls with the likelihood of passing a law requiring property owners to retrofit “soft-story” buildings – bolstering them as earthquake-proof. Before 1976, supporting pillars on a first story were not constructed sufficiently to sustain a major earthquake. Now, older buildings face the risk of collapsing during a quake – hence the term “soft-story” – because the first floor must carry the weight from above.
After the Northridge quake in 1994, the city of Santa Monica took the issue head on and passed an ordinance to require retrofitting of all soft-story buildings. Now, San Francisco policymakers have taken action and passed similar regulations, potentially saving the lives of thousands, and also avoiding hefty reconstruction costs.
Los Angeles is up next and the clock is ticking. The last major earthquake in Los Angeles was the Northridge quake in 1994. Buildings with weak wood frames collapsed, resulting in 16 fatalities. It could be two days, or twenty years before the next quake – but most are certain it’s only a matter of time. Under such demands, Los Angeles officials are looking to swiftly take action. Councilman Tom LaBonge is calling for a survey to be conducted to determine just how many buildings are at risk – the first step in increasing awareness.
Undoubtedly, retrofitting all soft-story buildings in Los Angeles would be a massive undertaking, and many worry about the fiscal burden to property owners and tenants. The expense to reinforce the ground floor of a building may cost between $60,000 and $130,000. A required preliminary engineering assessment could also require thousands in expense.
In an interview for the Los Angeles Times, a San Franciscan property owner said, “I did not see how I could borrow $100,000 to invest in the building to do the retrofit.” Just before the law passed, he sold a seven-unit apartment building. “It did not make sense for me to go further in debt.”
In San Francisco, the retrofits can be financed through a property assessment district, which allows loans to be repaid through property taxes. Tenants would also be responsible for repair costs, even on rent control. Yet in Los Angeles, an answer to the financial burden currently remains unresolved, with many property owners unwilling to foot the bill. The question remains: Is the cost of retrofitting a worthwhile investment?
