Proceed cautiously when entering an Alquist-Priolo Zone

Seismic reports are a component of the due diligence process when a property is located in a seismically active area.   The need for a seismic report is determined by the Peak Ground Acceleration (PGA) value for the specific property location, and the PGA methodology recently replaced the Seismic Zone Maps which had been used since their introduction in 1949.  A PGA value of 0.15g or greater requires further seismic assessment for Fannie Mae and Freddie Mac transactions.  The PGA methodology changes some of the traditional seismic risk locations.  For example, some areas such as the central valley of California may not require a seismic assessment based on the PGA value.  Other areas, such as South Carolina, have a higher PGA value and will require a seismic assessment. Click HERE to download the current PGA Map.

While we’re on the subject, remember that California has a state law called the Alquist-Priolo Earthquake Fault Zoning Act.  This 1972 law established regulatory zones around active faults.  Within these zones, geotechnical assessment must be performed to determine whether a fault is present at the property prior to construction (or reconstruction).   No building can be constructed within 50 feet of an identified fault.  This law can definitely impact commercial real estate!