New Law For Buyers In Oakland Help Pay for Siesmic Retrofitting

New Law In Oakland Helps Pay for Seismic Retrofitting

The United States Geological Service (USGS) has forecasted that a magnitude 6.7 or larger earthquake will occur in the San Francisco Bay Area with 62% probability An earthquake of this magnitude would cause billions of dollars of economic loss in the Bay Area, half of which would be loss in damaged residencies.Oakland is expected to lose more than one-third of its housing in a major earthquake along the Hayward Fault.

Seismic strengthening of residences—known as seismic retrofitting— not only save lives, but also housing. This helps communities to withstand the short and long term effects of a major disaster.

A study completed by the University of Buffalo in 2006 demonstrated that a 2 story wood frame house built to California earthquake standards and then shook in a simulated magnitude 6.7 earthquake, survived with little structural damage.

It is estimated that 85% of Oakland’s existing residential buildings constructed before modern earthquake codes were adopted have not been even minimally strengthened to withstand seismic activity. Permits in the past cost 10% of the cost of retrofitting (usually $7,000-$30,000) Many homeowners were avoiding the permit process altogether to defer costs. Without City inspections, homeowners cannot be assured that the work is meeting current seismic retrofit standards.

The City of Oakland has incorporated basic retrofit standards into the City’s Municipal Code, established a flat retrofit permit fee of $250, and launched a New Homeowner Voluntary Seismic Strengthening Reimbursement Incentive Program that allows new owners of older homes one year in which to retrofit their residences to the standards, and provided they complete the work according to plan, receive up to $5,000 reimbursement for their expenses. New owners must apply for the permit within 60 days of recording the transfer of ownership to be eligible for the Incentive Reimbursement Program.

What if you already own your home?

You can still take advantage of the flat $250 permitting fee for the retro-fitting.

How can I pay for the retrofitting?

Retrofitting a home can be costly. There are a few options available. You may want to consider a home equity line of credit. Or you can try doing some of the work yourself to bring down the costs. There is a handbook created by the City of Oakland a few years ago that explains how to do several retrofitting project yourself. You can check it out on the web at http://www.oaklandnet.com/earthquake/GetRetrofitHandbook.pdf

Retrofitting is a vital component to saving probably one of your greatest investments, your home.

If you have any questions you can contact me at lcartolano@apr.com or at 510.213.1139