Assembly Bill 428 Fact Sheet

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AB 428, SEISMIC RETROFIT TAX CREDIT
ASSEMBLYMEMBER ADRIN NAZARIAN
This Bill:
AB 428 will create a Seismic Retrofit Tax
Credit to encourage property owners of
seismically vulnerable structures, to make
necessary seismic safety improvements to
their “at-risk properties.”
Specifically AB 428:
o Will establish a 5 year 30% tax credit for
qualified costs associated with Seismic
Retrofit for qualified owners of an “at-risk
property.” The tax credit is awarded upon
completion of Seismic Retrofit.
o Defines an “at-risk property” as a building
that is deemed hazardous and in danger of
collapse in the event of a major earthquake
and is certified as so by the appropriate local
jurisdiction with authority for building code
enforcement, including but not limited to, soft
story buildings, non-ductile concrete
residential buildings, and pre-1980 concrete
residential buildings.
o Provides that a municipality’s local agency
with jurisdiction for building code and safety
enforcement certify an “at-risk building”
located within their area.
o Defines what Seismic Retrofit Construction
means.
o Sets a sunset date of December 1, 2021.
Background:
There are many types of buildings that have
been identified as seismically unsafe through
studies and past declarations by the state
Legislature. These buildings include soft story
buildings and non-ductile concrete buildings,
including lift-slab buildings with lateral force
resisting systems.
Concrete buildings, particularly older ones
with high numbers of occupants, can collapse
and kill individuals. These buildings are the
fastest growing cause of earthquake losses
around the world.
California changed building codes in the mid1970s, after engineers learned what caused
their vulnerability and how to strength them.
As a result, new concrete construction is at
least 20 times safer in an earthquake. Yet
even now, 40 years after those advances, the
great majority of California's older concrete
buildings have still not been evaluated or
retrofitted.
These buildings include apartment buildings
and condominiums that house thousands of
Californians. The sturdy appearance of these
buildings is dangerously deceptive. Even
those that do not collapse in a strong
earthquake may have to be replaced, as was
seen after the 2011 Christchurch, New
Zealand magnitude 6.3 earthquake. Although
only 2 buildings in that city collapsed
completely, 70% of the city's downtown had
to be leveled to the ground and rebuilt. The
impact of a strong earthquake on downtown
Los Angeles is predicted to be far greater.
The 1989 Loma Prieta magnitude 6.9
earthquake and the 1994 Northridge
magnitude 6.7 earthquake were both much
stronger than the one in Christchurch that
caused such destruction.
Recent findings by UC researches,
highlighted in a recent article in the Los
Angeles Times, identify 1,500 concrete
buildings that are seismically vulnerable in
the Los Angeles area. The researchers state
that in the event of a huge earthquake 75 are
likely to collapse.1
1
http://graphics.latimes.com/la-concrete-buildings/
Last Updated: 3.24.15
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AB 428, SEISMIC RETROFIT TAX CREDIT
ASSEMBLYMEMBER ADRIN NAZARIAN
The US Geologic Survey gives better than
99% odds that one or more magnitude 6.7
earthquakes will take place in California by
2038. The survey states 46% odds that at
least one even more powerful quake, of
magnitude 7.5 or greater, will take place
during the same period.2
Support:
City of Los Angeles
California Apartment Association
Opposition:
Purpose:
N/A
AB 428 promotes earthquake preparedness
and safety by providing Californians with a
tax incentive, to encourage the retrofit of
unsafe properties.
Staff Contact:
Hrag Kitsinian
916.319.2411
[email protected]
The benefits of a Seismic Retrofit Tax Credit
are enormous. A recent FEMA study shows
that money spent on reducing the risk of
natural hazards is a sound investment.
On average, a dollar spent on hazard
mitigation (actions to reduce disaster losses)
provides the Nation about $4 in future
benefits. 3
AB 428 will decrease future public costs for
disaster relief, as well as, reduce the damage
to private property and improve resilience
from future earthquakes.
Over the long term, the public will save
money that would otherwise have been
required for disaster relief. Lives and private
property will be saved. There will be
improved community resilience following a
catastrophic earthquake.
2
http://www.scec.org/ucerf2/
http://c.ymcdn.com/sites/www.nibs.org/resource/resm
gr/MMC/hms_vol1.pdf
3
Last Updated: 3.24.15