BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2362
                                                                  Page  1

          Date of Hearing:   August 25, 2010

               ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
                                 Norma Torres, Chair
                    AB 2362 (Skinner) - As Amended:  July 1, 2010
           
          SUBJECT  :   Redevelopment funds: soft-story building seismic  
          retrofits  

           SUMMARY  :   Allows redevelopment funding to be used to  
          rehabilitate a "soft-story building." Defines a "soft-story  
          building" as a wood frame, multi-unit residence built prior to  
          January 1, 1978, where the ground floor of the structure  
          contains parking or other open floor space that causes soft,  
          weak, or open front wall lines.  

           EXISTING LAW  permits a redevelopment agency, within a project  
          area, to take actions to bring unreinforced masonry buildings,  
          historic properties and other buildings that require upgrades to  
          the current buildings standard, in order to comply with seismic  
          safety. 

           FISCAL EFFECT  :   None.

           COMMENTS  :   According to the author, "The United States  
          Geological Society, California has said that there is a 99.7%  
          chance that it will be hit by an earthquake of 6.7 magnitude or  
          higher in the next thirty years.  Wood-frame, multi-unit  
          residential buildings with soft, weak or open-front first  
          stories, commonly known as soft-story buildings, have a great  
          likelihood of collapse if an earthquake of 6.7 magnitude or  
          higher occurs.  Of the 16,000 housing units that were rendered  
          uninhabitable by the Loma Prieta earthquake, 7,700 housing units  
          were in soft-story buildings.  Thirty-four thousand housing  
          units that were rendered uninhabitable in the Northridge  
          earthquake were soft-story buildings.  Soft-story buildings have  
          made up a large majority of the buildings that are destroyed by  
          a major earthquake.  Moreover, major earthquakes often make  
          these buildings uninhabitable for residents and therefore  
          displace hundreds of thousands of residents. According to the  
          State of California, Multi-Hazard Mitigation Plan of 2007, there  
          are 46,000 soft-story buildings in seismically unstable areas of  
          the state.  Those buildings have over 730,000 residential units  
          and over a million residents."  









                                                                 AB 2362
                                                                  Page  2

           As passed by the Assembly, this bill would have allowed for an  
          exclusion from property tax assessment for the portion of  
          reconstruction or improvement made to a soft-story building
          The Senate amendments delete the contents of the bill and  
          clarify that redevelopment agencies can use redevelopment funds  
          to rehabilitate a soft-story building as defined, within a  
          project area.  A soft-story building is defined as a wood frame,  
          multi-unit residential building constructed before January 1,  
          1978, where the ground floor portion of the structure contains  
          parking or other similar open floor space.  When a redevelopment  
          agency is rehabilitating or constructing buildings in a project  
          area, the agency can provide for seismic retrofits.  State law  
          requires the seismic retrofit work to follow the requirements of  
          the building codes that apply to unreinforced masonry buildings,  
          historical buildings, and other buildings.  The current law does  
          not specifically mention soft-story buildings; this bill adds  
          soft-story buildings to the existing law.   




           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Apartment Association

           Opposition 
           
          None on file. 
           
          Analysis Prepared by  :    Lisa Engel / H. & C.D. / (916) 319-2085