Today's Law As Amended

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AB-1440 Earthquake loss mitigation: grant programs.(2015-2016)

As Amends the Law Today

 (a) The Legislature finds and declares all of the following:
(1) The earthquakes of 2014 that affected the Cities of La Habra and Napa have generated increased interest in mitigating the damage to single-family homes from earthquakes.
(2) The California Earthquake Authority and the Office of Emergency Services plan to expand the Earthquake Brace + Bolt program to 650 homes in 2015.
(3) The California Earthquake Authority is working with the Federal Emergency Management Agency and the Applied Technology Council, a nonprofit research organization, to develop the “ATC-110. Development of a Prestandard for the Evaluation and Retrofit of One and Two Family Light Frame Residential Buildings” for retrofitting additional types of single-family homes.
(4) A well-funded program to encourage homeowners to mitigate the risk to their homes would mean more homes would survive an earthquake and homeowners who retrofit their homes would receive actuarially justified lower rates for earthquake insurance.
(5) Only 12 percent of California homeowners currently purchase earthquake insurance, leaving the vast majority of homeowners unprotected in the event of a major earthquake.
(6) There are many paths to funding a retrofit program, including income tax credits, sales tax rebates, attaching the financing to property taxes, and grants.
(b) Therefore, it is the intent of the Legislature to enact legislation that would create and fund a program to assist California homeowners with earthquake mitigation repairs to their homes.

SEC. 2.

 Section 10089.395 is added to the Insurance Code, immediately following Section 10089.39, to read:

 (a) The Legislature finds and declares that there exists the California Residential Mitigation Program, also known as the “CRMP,” a joint powers authority created in 2012 by agreement between the California Earthquake Authority and the Office of Emergency Services.
(b) If Legislature appropriates funds for the purpose of funding the CRMP’s implementation of the grant program described in this section, the CRMP shall, pursuant to the requirements of this section, implement the grant program and make grants that assist a qualifying owner of a single-family residential structure by defraying the owner’s cost of seismic retrofitting of the structure.
(c) The CRMP may make a grant to an applicant who satisfies all of the following:
(1) The applicant is an owner of record of, and lives in, the structure to be retrofitted.
(2) The structure is a single-family, detached, residential building of not more than four dwelling units.
(3) The structure meets structural requirements established pursuant to subdivision (e).
(4) The structure is located in a high-risk earthquake area, based on criteria established pursuant to subdivision (e).
(5) The retrofit work qualifies as work for which the applicant may receive a grant, based on criteria established pursuant to subdivision (e).
(d) A grant shall not exceed the lesser of 75 percent of the cost of the qualifying retrofit work, or three thousand dollars ($3,000).
(e) The governing board of the CRMP shall adopt policies and procedures necessary to implement this section, including, but not limited to, establishing structural eligibility requirements for structures that will receive seismic retrofit work, defining criteria for determining whether a structure is located in a high-risk earthquake area, and defining criteria for seismic retrofit work that qualifies as work eligible for receipt of a grant. In adopting those policies and procedures, the governing board shall provide notice and opportunity for public review and comment, publish the policies and procedures on the CRMP’s Internet Web site, and otherwise make the policies and procedures available to the public.