If you’re considering purchasing a multifamily property in Los Angeles, there’s a critical compliance issue that could turn a “bargain” into a six-figure disaster. Soft-story buildings, which are particularly vulnerable in earthquakes, carry mandatory retrofit requirements that every buyer needs to know before closing.
A soft-story building typically has a weak ground floor, often with large openings like garages or storefronts, making it more likely to collapse during an earthquake. These structures are common in older multifamily buildings across LA, including Hollywood, Downtown, and other high-density neighborhoods.
Under Ordinances 183893 and 184081, the City of Los Angeles requires soft-story buildings to undergo seismic retrofits. Key details include:
Buildings affected: Multifamily buildings with 16 or more units (smaller buildings may also be subject to rules)
Estimated buildings still needing upgrades: ~13,500
Deadlines for compliance:
2 years to submit retrofit plans after receiving a compliance order
3.5 years to pull permits
7 years to complete construction
Failure to comply can result in fines, penalties, and legal fees.
The ramifications of purchasing a multifamily building that has not yet been retrofitted could be enormous. The costs of the retrofit, combined with fines, penalties, and attorney fees, if applicable, could exceed $500,000.
Skipping a simple LADBS retrofit check can turn what seems like a bargain property into a major financial burden.
Check the retrofit status before closing
Always pull the building’s retrofit information from LADBS to ensure compliance.
Factor retrofit costs into your offer
Calculate potential seismic upgrade costs and include them in your purchase decision.
Walk away if the risk is too high
A property that seems cheap can be a ticking time bomb if seismic upgrades haven’t been completed.
Buying a soft-story multifamily building in Los Angeles requires careful due diligence. Always verify retrofit status, understand applicable deadlines, and budget for compliance costs. Proper planning can protect you from unexpected six-figure expenses and ensure your investment remains profitable.