Proposition 10: A Threat to All Property Owners and Investors
Los Angeles is Shaking
A 4.2 earthquake hit the Westwood and Santa Monica area on Sunday night, startling many Los Angeles residents. In just the past few months, five earthquakes measuring 4.0 or greater have shaken up our city, which hasn’t occurred since 1994 – the year of the Northridge quake!
Los Angeles Update
The Los Angeles Times recently published a video article that exposes buildings built on the Hollywood fault line, in serious risk of collapse in an earthquake. Some of the buildings include The Standard Hotel and Immaculate Heart High School and Middle School.
The LA City Council agreed last week to send officials to identify a list of buildings vulnerable to collapse. Mainly, the survey will focus on properties built before 1978 with at least two stories and at least five units. About 5,800 buildings are estimated to be soft-story buildings in need of retrofits. An additional 11,690 buildings will also need to be inspected on site.
Santa Monica Update
The city of Santa Monica has also taken quick action by hiring an engineering firm, Degenkolb Engineers, to identify all vulnerable buildings in the city built before 1996. Although a law was passed 20 years ago requiring retrofitting, the city failed to implement measures after losing the list of at-risk buildings. It will cost the city over $90,000 to conduct the survey.
Owners will have the opportunity to prove that their properties do not need retrofits. However, buildings still determined to be faulty will require expensive maintenance to ensure safety in the event of an earthquake. Financial aid or tax break incentives to assist property owners have been discussed, but no mode of action has been determined at this time.
When will the “Big One” arrive? Although no one can predict it, you can be certain that Los Angeles and Santa Monica have begun the process to ensure buildings are retrofitted. Ready yourself by either retrofitting your assets or calling an Azzi Advisor to discuss your options to spare the expense.
Azzi Advisors strives to keep you updated on the progress of breaking news about the changing earthquake retrofit regulations in Los Angeles and Santa Monica. Speak with an Azzi Advisor today to determine your best move.
