City Bond Program Would Help Pay for Quake Repairs to High-Rises

The owners of earthquake-damaged high-rise buildings would be able to pay for expensive repairs through a voluntary assessment program proposed by Los Angeles city officials.

Under the program, the city would issue about $200 million in bonds to help the owners of the 280 steel-frame buildings pay for the required inspections and repairs.

Building owners who voluntarily participate in the program would pay an annual tax over 30 years to pay off the bond.

The program was proposed by the Los Angeles Building Owners and Managers Assn., which has complained that earthquake repair work on steel-frame buildings is too expensive.

Geoffrey Ely, president of the association, said about half of the affected building owners have already expressed interest in the program and others are expected to get on board soon.

Because the program is voluntary, only building owners who participate would be assessed and the fee would be based on how much work their building needs, he said.

After the Northridge earthquake, building engineers were surprised to learn that steel-framed buildings did not hold up to the quake as they expected. Cracks were found in the welded joints of dozens of buildings in the San Fernando Valley and west Los Angeles.

In response, the council adopted an ordinance in 1994 that gave the owners of steel-frame structures up to three years to inspect and repair cracks in the welded-beam connections.

City officials say that more than 30 high-rise buildings have yet to be inspected and many more have yet to complete repairs.

But buildings owners have complained that the cost of inspections alone could cost from $1,500 to $3,000 per connection. Repairs could cost an additional $15,000 to $22,000 per joint.

Greig Smith, chief of staff to Councilman Hal Bernson, who heads the council’s earthquake recovery committee, said the bond program will help ensure that the repairs are completed quickly. “It’s a creative way to solve everybody’s problem without going to the taxpayers to foot the bill,” he said.

The council is expected to give preliminary approval of the program on Tuesday.

The only other time the city has created such a funding program was in 1994 to help building owners pay for the installation of sprinklers and other fire safety improvements.