California Earthquake Authority (CEA) Residential

Residential Structural Retrofit Program
– A Collaborative Opportunity –
California Earthquake Authority
July 2010
California is home to 65% of the nation’s earthquake risk
The majority of Californians live within 20 miles of a major fault
USGS is forecasting a 99% chance for a major earthquake (M6.7)
within next 30 years
About 1.5 million houses were built in California before 1960
when (some) jurisdictions began to require adequately braced
walls and bolted foundations
Local efforts to-date...
Few jurisdictions have succeeded in positioning residential
structural retrofit programs in their building departments
Building codes that cover residential structural retrofitting
(where available) differ across active programs
Local programs are not positioned to succeed statewide
The CEA is a publicly managed, yet privately funded statewide
organization that provides residential earthquake insurance
and mitigation programs
By law, the CEA sets aside 5 percent of its annual investment
income up to $5 million for mitigation
Total CEA funds available for statewide mitigation currently
exceed $20 million
The high number of houses built before 1960, combined with
the leveraged value of post-disaster benefits from each
mitigation dollar, has led the CEA recently to tighten its focus
on residential structural retrofitting
Hosting scoping sessions
Collected input in Sacramento (discussion facilitated by former
FEMA Director James Lee Witt), Los Angeles and Oakland
Requested guidance in defining, advancing and sustaining a
common sense approach to a first-ever statewide residential
structural retrofitting program
Heard from structural engineers; building officials; residential
retrofitting contractors; earth scientists; trade associations; as
well as local, state and federal government officials
Scoping session input…
Provide financial incentives to help offset consumers’
structural retrofitting costs
Align programming with (local) building codes and
standardized plan sets
Emphasize contractor training
Implement effective marketing to engage consumer
Be sustainable into the future
Incorporating State Hazard Mitigation Plan
CEA mitigation programming successfully incorporated into
2010 State Hazard Mitigation Plan (SHMP)
SHMP is official statement of state’s hazard identification,
vulnerability analysis and hazard mitigation strategy
SHMP is the result of a collaborative, multi-agency planning
process with multiple opportunities for public participation
CEA incorporation in the SHMP likely will qualify its
residential structural retrofitting program for additional
federal assistance funds
Adopting statewide building code
Without a statewide building code for residential structural retrofitting, just a
few jurisdictions in California previously inspected and approved these projects
Statewide standardized plan set not feasible due to variations in regional
CEA strategized with state departments / commissions to address challenges
CEA garnered a gubernatorial Finding of Emergency to fast-track adoption of
first-ever California Building Code for residential structural retrofitting
California Department of Housing and Community Development is managing
code-adoption process
California Seismic Safety Commission co-funded the code-adoption process
California Building Standards Commission will adopt code on August 16, 2010
Issuing industry partner RFQ
Seeking a program partner to co-administer financial
incentives and contractor training; released RFQ July 1, 2010
Future partner currently must:
 Oversee and existing home-building constituency
 Be savvy on related building codes
 Operate within statewide infrastructure
 Demonstrate awareness for residential structural
retrofitting needs
 Have experiences with consumer incentives and
contractor training
Forming Joint Powers Authority
Working with the California Emergency Management Agency
(CalEMA) to form a Joint Powers Authority (JPA) to oversee a
“California Earthquake Loss Mitigation Authority”
JPA designed to manage residential structural retrofitting
program and related activities
• Creates legal entity separate from its members
• Separates JPA’S debts, liabilities, obligations from members
• Allows contracting with private-sector firms to do JPA’s work
Seeking CEA Governing Board approval on August 26, 2010
Delivering sustainable funding
Funding currently available ($20 million) would enable the CEA to offer
($1,000) financial incentives to seismically retrofit 20,000 of the
approximately 1.5 million houses especially vulnerable to structural
earthquake damage – reaching just over 1 percent of the houses built
before sufficient (local) building codes were in place
The CEA’s $20 million pre-disaster investment to help finance the “bracing
and bolting” of single-family houses (averaging $3,000 to $5,000 per house)
will generate an estimated $60 million to $100 million in near-term
economic activity
The CEA’s $20 million investment in pre-disaster dollars will leverage a
minimum of $80 million in post-disaster benefits
Under existing law, the CEA Governing Board will continue to set aside up to
$5 million of the CEA’s investment income annually – enough to structurally
retrofit an additional 5,000 single-family houses
How the National Mitigation
Collaborative Alliance can help
Guide the CEA’s mitigation programming results into
a national repository
Vulnerable housing inventories
Residential building code challenges / opportunities
Educate the CEA about related programs
Consumer incentives and contractor training
Building inspectors
Federal assistance
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