Earthquake Brace + Bolt ECA Regional Workshop February 23, 2017 Sheri Aguirre Managing Director Earthquake Brace + Bolt

CEA ESTABLISHED AFTER NORTHRIDGE EARTHQUAKE 1984 Mandatory Offer (Earthquake insurance) Law. 1994 Northridge earthquake - huge insured loss Insurance companies stopped writing HO insurance policies in CA In response, CA State Legislature created the CEA CEA is publically managed but privately funded January 17, 1994

$20 Billion residential damage NORTHRIDGE EARTHQUAKE $20 Billion residential damage Insurance companies stopped writing homeowners

CEA MITIGATION PROGRAM Background California Insurance Code Section 10089.37: “The board shall set aside in each calendar year an amount equal to 5 percent of investment income accruing on the authority’s invested funds, or five million dollars ($5,000,000), whichever is less, … to be maintained as a subaccount in the California Earthquake Authority Fund. The authority shall use those funds to fund the establishment of an Earthquake Loss Mitigation Fund.” When CEA was created 20 years ago in statute, that statute also directed CEA to create a Mitigation Fund to be used for the benefit of all Californians– not just policyholders. A percentage or our investment income was set aside for 20 years and it’s these funds that support our Mitigation Activities.

+ = CEA MITIGATION PROGRAM Jointly Managed by CEA and Cal OES Retrofit Incentive Program Jointly Managed by CEA and Cal OES First to Promote “Code-Compliant Retrofit” More than 1 Million Homes Could Benefit + = Teamed with Cal OES To promote seismic retrofits of vulnerable single-family homes Code-Compliance (2010) – Chapter A3

EBB PROGRAM Up to $3,000 Code-Compliant Retrofit Grown Every Year Overview Up to $3,000 Code-Compliant Retrofit Grown Every Year 2017 Marks Year Four 2013/14 Pilot: 8 retrofits 2015: 530 retrofits 2016: 1,250 retrofits 2017: 2,000 retrofits (goal) $3 Million from the State of California 2017 17 cities and approx. 140 Zip Codes

EBB PROGRAM City Selection Process Bay Area and Los Angeles Area Overview City Selection Process High hazard + high density of older homes Bay Area and Los Angeles Area 2013/14 4 Zips in 2 Cities 2015 28 ZIPs in 6 Cities 2016 100+ ZIPs in 18 Cities 2017 140+ ZIPs in 33 Cities

EBB PROGRAM For Houses to Qualify: Must be owner occupied ZIP Code Overview For Houses to Qualify: Must be owner occupied ZIP Code House constructed pre-1979 Raised continuous perimeter concrete foundation Sit on level ground or a low- slope site Wood-framed walls (cripple walls) in the crawl space

EBB TARGETS CRIPPLE WALL FAILURE Cripple wall collapse

EBB RETROFIT Before After

2017 EBB 17 New Cities and 40 New ZIP Codes Homeowner Registration is January 25 to February 27 Register Online

EBB CONTRACTOR DIRECTORY Must complete free FEMA-training– 6 sections with quizzes and takes about 2 hours Once Included free material to promote the program

PROGRAM MECHANICS Random Selection Process Homeowners Accepted or Wait Listed Have 8 Weeks to: Select contractor and get permit, or Do-It-Yourself and get permit Six Months to Complete Retrofit Upload Documentation for Approval Grant to Homeowner or Contractor

PROGRAM OUTREACH AND EDUCATION Contractors Building Officials and Departments City Managers Mayors Offices State and Federal Legislators

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