Soft-story retrofit requirements in LA affect thousands of apartment buildings built before 1978. Understanding these mandates is essential for owners of older multifamily properties in Los Angeles.
What Is a Soft-Story Building?
Understanding soft-story retrofit in LA starts with knowing the basics. A “soft-story” building is a multi-story structure with a weak first floor—typically because of large openings like parking garages, tuck-under parking, or retail spaces with lots of windows. These buildings are vulnerable to collapse during earthquakes because the ground floor can’t support the weight of upper floors during seismic shaking.
Los Angeles has thousands of soft-story apartment buildings, and the city has mandated retrofits to protect residents and property.
Which Buildings Are Affected?
LA’s Mandatory Retrofit Ordinance
The City of Los Angeles requires retrofits for buildings that meet ALL of these criteria:
- Wood-frame construction
- Two or more stories
- Built before January 1, 1978
- Ground floor with parking or other soft-story condition
- Contains 3 or more dwelling units
If your building matches this description, you’ve likely already received notice from the city.
How to Check Your Status
- Search the LA Department of Building and Safety (LADBS) website
- Look for notices you may have received
- Check your property’s permit history
- Consult with a structural engineer
Compliance Deadlines
The city issued compliance orders in phases. Most deadlines have passed, but if you haven’t complied:
- You may face fines and penalties
- Non-compliance is disclosed in sales
- Insurance may be affected
- Lenders may require compliance before financing
If you’re behind, act now. The city has been increasingly aggressive about enforcement.
What Does a Retrofit Involve?
Typical Retrofit Work
A soft-story retrofit generally includes:
- Steel moment frames: Rigid steel frames installed in the ground floor openings
- Plywood shear walls: Structural plywood added to strengthen walls
- Foundation anchoring: Connecting the structure more securely to the foundation
- New structural connections: Metal hardware connecting floors, walls, and roof
What It Looks Like
After retrofit:
- Parking areas may have steel frames visible
- Some parking spaces may be lost
- The building’s exterior appearance is usually unchanged
- Interior units are typically unaffected
Retrofit Costs
Typical Cost Ranges
Costs vary widely based on building size and complexity:
- Small buildings (3-8 units): $50,000 – $100,000
- Medium buildings (9-20 units): $100,000 – $200,000
- Large buildings (20+ units): $200,000 – $400,000+
Per-unit costs typically range from $10,000 to $20,000.
Cost Factors
- Number of ground-floor openings
- Building size and configuration
- Existing structural conditions
- Foundation type and condition
- Contractor availability and pricing
The Retrofit Process
Step 1: Hire a Structural Engineer
- Engineer assesses your building
- Creates retrofit design and plans
- Cost: $5,000 – $15,000 for engineering
Step 2: Permit Application
- Submit plans to LADBS
- Plan check review (can take weeks to months)
- Permit fees based on project value
Step 3: Construction
- Hire a licensed contractor
- Work typically takes 4-8 weeks
- Minimal disruption to tenants (work is mostly in parking/ground floor)
Step 4: Final Inspection
- City inspector verifies work matches approved plans
- Certificate of compliance issued
- Building is removed from non-compliant list
Financing Options
Paying for the Retrofit
- Cash: Simplest if you have reserves
- Line of credit: Draw as needed during construction
- Refinance: Roll costs into a new mortgage
- PACE financing: Property Assessed Clean Energy loans (repaid through property taxes)
- Contractor financing: Some contractors offer payment plans
Rent Increases for Capital Improvements
Under LA’s RSO, you may be able to pass through some retrofit costs to tenants:
- Capital improvement applications allow rent increases for major work
- The process requires LAHD approval
- Increases are spread over time
- Consult with a housing attorney for specifics
Impact on Property Value
Compliant Buildings
- Easier to sell and finance
- Lower insurance costs
- More attractive to buyers
- No pending compliance costs for new owner
Non-Compliant Buildings
- Buyers will discount for retrofit costs
- Some lenders won’t finance
- Insurance may be limited or expensive
- Potential city penalties and fines
Generally, it’s better to retrofit before selling rather than accept a discounted price.
Insurance Considerations
After retrofitting:
- Notify your insurance company
- You may qualify for lower earthquake insurance premiums
- Some insurers require retrofit for coverage
- Keep documentation of completed work
Tenant Communication
Before Construction
- Notify tenants of upcoming work
- Explain the purpose (safety improvement)
- Provide timeline and expected disruption
- Address parking changes if applicable
During Construction
- Keep tenants informed of progress
- Minimize noise during early/late hours
- Ensure safe access to units
- Address concerns promptly
Quick FAQs
Q: What if I ignore the retrofit requirement?
A: The city can impose fines, place liens on your property, and potentially pursue legal action. Non-compliance also affects your ability to sell or refinance.
Q: Will I lose parking spaces?
A: Sometimes. Steel frames may reduce usable parking. However, LA has relaxed parking requirements in many cases, so lost spaces may not violate code.
Q: Can tenants withhold rent during construction?
A: No, as long as their units remain habitable. The retrofit work is typically in common areas, not inside units.
Q: Does retrofit make my building earthquake-proof?
A: No building is earthquake-proof. Retrofit significantly reduces the risk of collapse but doesn’t eliminate all earthquake damage potential.
Have questions about soft-story compliance for your building? Contact me to discuss.
Soft-story retrofit compliance in LA is mandatory, but it can also add value to your building. Contact me to discuss how retrofit status affects your property’s marketability.