WEBINAR: CalCAP – New Seismic Retrofit Program
The California Seismic Safety Capital Access Loan Program (CalCAP/Seismic Safety) is seeking financial institutions to participate in a new credit enhancement program to help with seismic retrofitting.
The California Pollution Financing Authority (CPCFA) received $10 million in state funds to implement a statewide CalCAP Seismic Safety Program to provide loss reserve funding for participating lenders making qualified loans to residential property owners and small business owners (with fewer than 500 FTEs) to seismically retrofit residential and commercial buildings.
Beginning in January 2017, the Program incentivizes private lending to borrowers to make seismic-safety upgrades to existing commercial buildings and homes, including multi-unit housing and mobilehomes registered with the California Department of Housing and Community Development.
The maximum enrolled loan amount is $250,000 and can be supported for up to 10 years. Lenders set all of the terms and conditions of the loans pursuant to their usual underwriting policies. Loans can be short or long-term, have fixed or variable rates, and bear any type of amortization schedule.
Created through SB 837 (Chapter 32, Statutes of 2016), the new program is based on the California Capital Access Program (CalCAP), which the CPCFA has administered since 1994. CalCAP is a loan loss reserve program that may provide participating lenders up to 100 percent coverage on certain enrolled loan defaults. By participating in CalCAP, lenders have available to them a proven credit enhancement to meet the financing needs of California’s small businesses. SB 837 creates a sustainable Program, and includes the recapture of unclaimed State loan loss reserve contributions on matured loans to be used to support future loans beyond the $10 million appropriated.
Any federal or state-chartered bank, savings association, certified Community Development Financial Institutions, or credit union is eligible to participate in CalCAP. A lender must certify that it is in good standing with its regulatory body (Federal Reserve, Federal Deposit Insurance Corporation, Comptroller of Currency, Thrift Supervision, National Credit Union Administration, or state banking authority), Finance Lenders, micro lenders and others regulated by the Department of Business Oversight under the finance lender’s law may also be eligible.
More than 45 lenders are currently enrolled in the various CalCAP programs.
These loans can be used for seismic retrofit construction alterations performed on or after January 1, 2017, of a qualified building or its components to substantially mitigate seismic damage.
Seismic retrofit construction includes, but is not limited to, all of the following:
- Anchoring the structure to the foundation;
- Bracing cripple walls;
- Bracing hot water heaters;
- Installing automatic gas shutoff valves;
- Repairing or reinforcing the foundation to improve the integrity of the foundation against seismic damage;
- Anchoring fuel storage; and
- Installing an earthquake-resistant bracing system for mobile homes that are registered with HCD.
Information and Contacts
CPCFA provides a webpage for people to subscribe to all of the office’s Listservs for further updates. Lenders interested in enrolling in CalCAP Seismic Safety or any of the CalCAP program must complete a CalCAP Financial Institution Application.
CalCAP Seismic Safety staff can be reached via email at CalCAP@treasurer.ca.gov or by calling (916) 654-5610.
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