Residential Structural Retrofit Program – A Collaborative Opportunity – California Earthquake Authority July 2010

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<ul><li> Slide 1 </li> <li> Residential Structural Retrofit Program A Collaborative Opportunity California Earthquake Authority July 2010 </li> <li> Slide 2 </li> <li> Challenge 1 California is home to 65% of the nations 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 </li> <li> Slide 3 </li> <li> Local efforts to-date... 2 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 </li> <li> Slide 4 </li> <li> Solution 3 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 </li> <li> Slide 5 </li> <li> Hosting scoping sessions 4 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 </li> <li> Slide 6 </li> <li> Scoping session input 5 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 participation Be sustainable into the future </li> <li> Slide 7 </li> <li> Incorporating State Hazard Mitigation Plan 6 CEA mitigation programming successfully incorporated into 2010 State Hazard Mitigation Plan (SHMP) SHMP is official statement of states 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 </li> <li> Slide 8 </li> <li> Adopting statewide building code 7 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 requirements 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 </li> <li> Slide 9 </li> <li> Issuing industry partner RFQ 8 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 </li> <li> Slide 10 </li> <li> Forming Joint Powers Authority 9 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 JPAS debts, liabilities, obligations from members Allows contracting with private-sector firms to do JPAs work Seeking CEA Governing Board approval on August 26, 2010 </li> <li> Slide 11 </li> <li> Delivering sustainable funding 10 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 CEAs $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 CEAs $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 CEAs investment income annually enough to structurally retrofit an additional 5,000 single-family houses </li> <li> Slide 12 </li> <li> How the National Mitigation Collaborative Alliance can help 11 Guide the CEAs 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 </li> </ul>

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