Susan Wengraf
Vice Mayor & Councilmember District 6
2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7160 ● TDD: (510) 981-6903 ● Fax: (510) 981-7166 E-Mail: [email protected]
CONSENT CALENDAR
September 10, 2024
To: Honorable Mayor and Members of the City Council
From: Vice Mayor Wengraf (Author), Councilmember Hahn (Co-Sponsor), Councilmember Humbert (Co-Sponsor), Councilmember Taplin (Co-Sponsor) Subject: Amending BMC 7.52.060 to include “Wildfire Hardening” in the Real Property Transfer Tax Exceptions
RECOMMENDATION
Adopt the first reading of an Ordinance to amend Berkeley Municipal Code 7.52.060, Real Property Transfer Tax Exceptions, by adding Sub-section L, Wildfire Hardening, below Sub-section K, Seismic Upgrades.
FINANCIAL IMPLICATIONS
To be determined
CURRENT SITUATION AND ITS EFFECTS
The inherent wildfire risk Berkeley faces because of the natural topography and weather conditions is increasing due to climate change which is bringing more frequent and substantial draughts, and higher temperatures.
The City of Berkeley has and will continue to implement strategies that reduce the wildfire risk to our community, and should a wildfire occur, improve the emergency response. However, the City is able to address only a small part of the wildfire risk that the community faces as the majority of risk within the City lies on private property on and around structures that pre-date the 2008 implementation of California Building Code Chapter 7A and lack defensible space. While some of the retrofit work that must occur is inexpensive, much of it is expensive and must be completed by professionals.
Thus, there is a financial challenge to getting this work completed, even for motivated residents. There is a need to be nimble and adapt our legislation to incentivize the work we know has to get done, work that will make our community resistive to ember caused ignitions and slow an advancing fire so firefighters can protect the community. This amendment will provide an opportunity and mechanism for the City to incentivize homeowners in making these improvements.
The risk of structural ignition can be reduced through “wildfire hardening” which is the process of increasing resistance to wildfire by replacing combustible materials with ignition resistant and/or non-combustible materials and other scientifically proven
Amending BMC 7.52.060 to include “Wildfire Hardening” CONSENT Calendar September 10, 2024
actions including:
• Reducing the structure’s vulnerability to heat.
• Creating fire-resistant surfaces.
• Blocking any potential points of ingress for embers and other flammable material.
Retrofitting our homes against seismic damage and destruction has proven to be good policy; hardening against wildfire will be as well. Providing a refund of a portion of the transfer tax to harden against wildfire will incentivize owners and buyers to undertake these important upgrades and reduce our vulnerability to destruction and damage as a result of a wildfire.
Berkeley Municipal Code (BMC) Chapter 7.52 (Real Property Transfer Tax) Section .060 provides exceptions to payment of transfer tax, including to those who make seismic upgrades just before or after selling or buying their home. Up to one-third of the tax imposed by BMC 7.52 can be reduced, on a dollar-for-dollar basis, for all expenses incurred on or after October 17,1989 to "seismically retrofit".
This item recommends a similar exception for wildfire hardening expenses by adding Sub-section L. The maximum rebate shall be one-third (1/3) of the tax paid for a transfer of real property. However, the total rebate for any combination of seismic retrofit and/or wildfire hardening shall not exceed the maximum of one-third (1/3) of the tax paid per property. This shall take effect on January 1, 2025.
Qualifying upgrades and wildfire hardening projects must be completed either up to one year prior to the transfer of real property or within one year after the transfer. If the work qualifying for a rebate is completed prior to the transfer of the real property, the seller and buyer must decide who may apply for and receive the rebate. Work must be performed pursuant to a plan prepared by the applicant and approved by the Building Official, Fire Marshall or their designee.
The amendment to BMC 7.52.060 proposes to adopt the California Department of Insurance, “Safer from Wildfires” mitigation framework. According to the California Department of Insurance, “Every action under Safer from Wildfires will qualify you for an insurance discount. By doing more, you can save more.”
To be eligible for a rebate, the parcel level mitigations set forth in the California Department of Insurance “Safer from Wildfires” Framework REG-2020-00015 adopting California Code of Regulations Title 10, Chapter 5, Subchapter 4.8, Article 4, Section 2644.9 must be satisfactorily completed as determined by the Building Official (when a permit is required) and a Berkeley Fire Department Defensible Space Inspection.
Amending BMC 7.52.060 to include “Wildfire Hardening” CONSENT Calendar September 10, 2024
Some of the hardening upgrades will require a permit and inspection by the Building Department. All design, material and construction methods must be in conformance with California Building Code, Chapter 7A. Work that requires a permit and inspection, that is completed without one, will not be eligible for the transfer tax rebate. Property owners wishing to perform their own work may not include a charge for their time but may submit for the cost of materials.
Wildfire hardening includes but is not limited to:
1. Class-A Fire Rated Roof Assembly
2. Clearing combustible materials including fences and gates, and any and all movable combustible objects, from the area within five (5) feet of the building being evaluated (Replace with only noncombustible materials.).
3. At least six (6) inches of noncombustible vertical clearance at the bottom of the exterior surface of the building, measured from the ground up.
4. Fire-Resistant Vents and Gutter Covers of 1/16 to 1/8 inch noncombustible, corrosion-resistant metal mesh or OSFM Category 8165 approved ember resistant vents.
5. Multi-paned windows, including dual pane windows, or functional shutters, which when closed, cover the entire window and do not have openings.
6. Enclosed eaves.
7. Remove combustible materials and debris from under decks and installation of non-combustible siding or ember resistant mesh of 1/8” or finer around deck perimeter.
8. Removal or absence of combustible structures, including sheds and other outbuildings, from the area within thirty (30) feet of the building being evaluated or, in the event that the applicant does not control the entirety of the area extending thirty feet from the building being evaluated, removal of combustible structures from as much of such area as is under the control of the applicant.
9. Block spaces between roof covering and sheathing with noncombustible materials (bird stops).
10. The property upon which the building being evaluated is situated complies with Section 4291 of the Public Resources Code, and any applicable local ordinances, governing defensible space.
11. Any other work found by the Building Official or Fire Marshal (or their designee) to substantially increase the capability a structure to withstand destruction or damage in the event of a wildfire.
Amending BMC 7.52.060 to include “Wildfire Hardening” CONSENT Calendar September 10, 2024
Wildfire hardening increases a home’s resistance to heat, flames and embers, thereby reducing the chances of a home igniting. This also protects adjacent homes from igniting and causing a structure-to-structure fire spread through the community.
Adding Wildfire Hardening to Berkeley Municipal Code 7.52.060, Sub-section L, in addition to Seismic upgrades, supports Berkeley’s Strategic Plan Goal to create a resilient, safe, connected and prepared city.
BACKGROUND
Maintaining our housing stock is essential to the health and welfare of our city. The impacts from a wildfire are not just seen in the structures; it has devastating consequences on mental health, individual sense of security, and our financial stability as a community.
The Loma Prieta Earthquake took the Bay Area by surprise on October 17,1989.
According to the California Department of Conservation, that 6.9 magnitude earthquake killed 63 people, injured close to 4,000 and displaced over 12,000 people. Less than two years later, June 25, 1991, Berkeley City Council voted for an exception on transfer property taxes to help homeowners pay for seismically upgrading their homes, and BMC 7.52.060, Sub-section K was established. In the last 10 years, the Finance Department processed approximately 1,200 seismic upgrade rebates for a total of $7.2M.
Since the seismic retrofit exception was included in BMC 7.52.060 in 1991 no expanded safety exceptions have been added. The City of Berkeley is in one of the highest wildfire risk areas in the state. We have a long history of catastrophic wildfire here in Berkeley.
Most notably, in 1923, when a wildfire destroyed more than 600 homes, leaving more than 1,000 residents homeless. In 1991, the Berkeley/Oakland Tunnel Fire was responsible for 25 deaths and destroyed more than 3,000 homes. In 2024 valuation, that conflagration cost 4 billion dollars. Now is the time to amend this policy, adapt our legislation and help residents harden their homes against wildfire.
Fire science studies are decisive. Wildfire hardening reduces the chances of a home catching fire. The Home Insurance industry has taken note and adopted the components of Chapter 7A and defensible space in their evaluations of risk during the underwriting process. IBHS, the Insurance Institute for Business & Home Safety, initiated the Wildfire Prepared Home program, which incentivizes homeowners to implement home hardening best practices based on scientifically proven Wildfire Defense Standards.
Attachments: 1) Ordinance Amending Sections of 7.52.060 of the BMC – clean copy 2) California Building Code Chapter 7A
3) “Safer from Wildfires”, California Department of Insurance
ORDINANCE NO. #### -N.S.
AMENDING SECTIONS 7.52.060 OF THE BERKELEY MUNICIPAL CODE
BE IT ORDAINED by the Council of the City of Berkeley as follows:
Section 1. That Berkeley Municipal Code 7.52.060, Real Property Transfer Tax Exceptions, is amended to add Sub-section L. and read as follows:
BMC 7.52.60 Sub-section L
L. 1. Up to one-third of the tax imposed by this chapter shall be rebated, on a dollar for dollar basis, for all expenses incurred on or after January 1, 2025 to "wildfire harden" either any structure which is used exclusively for residential purposes, or any mixed-use structure which contains two or more dwelling units.
Multiple rebate applications may be submitted for a partial rebate of the tax paid.
However, the total rebate for any combination of seismic retrofit and/or wildfire hardening shall not exceed the maximum of one-third (1/3) of the tax paid per property.
2. The term "wildfire harden" within the meaning of this chapter means work which is the process of increasing resistance to wildfire by replacing combustible materials with ignition resistant and/or non-combustible materials and other scientifically proven actions. The work must be permanent and not vegetation management or gardening adaptations that require continued maintenance. To be eligible for a rebate, the parcel level mitigations set forth in the California Department of Insurance “Safer from Wildfires” Framework REG-2020-00015 adopting California Code of Regulations Title 10, Chapter 5, Subchapter 4.8, Article 4, Section 2644.9 must be satisfactorily completed as determined by the Building Official (when a permit is required) and a Berkeley Fire Department Defensible Space Inspection.
These include:
(a) All improvements must be permanent and comply with design, material and construction methods as described in the
California Building Code,
Chapter 7A. and BMC 19.28.030.
(b) Structures with a wood shake roof must be replaced with a Class A fire rated roof before qualifying for the transfer tax rebate. (c) Clearing combustible materials including fences and gates, and all movable combustible objects, from the area within five (5) feet of the building being evaluated (Replace with only noncombustible materials.).
(d) At least six (6) inches of noncombustible vertical clearance at the bottom of the exterior surface of the building, measured from the ground up. (e) Fire-Resistant Vents and Gutter Covers of 1/16 to 1/8 inch noncombustible, corrosion-resistant metal mesh or OSFM Category 8165 approved ember resistant vents.
(f) Multi-paned windows, including dual pane windows, or functional shutters, which when closed, cover the entire window and do not have openings. (g) Enclosed eaves.
(h) Remove combustible materials and debris from under decks and installation of non-combustible siding or ember resistant mesh of 1/8” or finer around deck perimeter.
(i) Removal or absence of combustible structures, including sheds and other outbuildings, from the area within thirty (30) feet of the building being evaluated or, in the event that the applicant does not control the entirety of the area extending thirty feet from the building being evaluated, removal of combustible structures from as much of such area as is under the control of the applicant.
(j) Block spaces between roof covering and sheathing with noncombustible materials (bird stops).
(k) The property upon which the building being evaluated is situated complies with Section 4291 of the Public Resources Code, when applicable, and any applicable local ordinances, governing defensible space. (l) Any other work found by the Building Official or Fire Marshal (or their designee) to substantially increase the capability of those structures, specified in subsection L.1, to withstand destruction or damage in the event of a wildfire.
3. The work to wildfire harden as provided herein shall be completed either up to one-year prior to the transfer of property or as provided in subsection L.5.
4. If the work to wildfire harden structures and property provided for herein is to be performed after the transfer of property which is subject to the tax imposed by this chapter, upon completion of such work and certification by the building official as to the amount of the expenses of such work the City Manager or their designee may refund such expenses not to exceed one-third of the tax imposed to the parties to the sale in accordance with the terms of such sale. Any remaining tax shall be retained by the City.
5. From the date of the recordation of the transfer document, the applicant shall have one year to complete all wildfire hardening work and submit a wildfire hardening verification application to the Codes and Inspection Division of the City of Berkeley. If the work is not completed at the end of one year, that portion which has been completed may be credited as a rebate to the applicant upon submission of a Home Hardening verification application and substantiating documentation, as required by the codes and inspections division of the City of Berkeley, showing the dollar amount of work completed up to that date.
6. Within the one-year period established by paragraph 5, an applicant may request, and the City Manager may approve, an extension of up to one year. The City Manager or their designee may grant such an extension only for good cause.
The decision of the City Manager or their designee shall be entirely within their discretion and shall be final.
(a) "Good cause" includes (i) the inability of the applicant, after a prompt and diligent search to find and retain the services of an architect, engineer, contractor or other service provider whose services are necessary for the Home Hardening work; (ii) unforeseen and unforeseeable circumstances such as a significant change in the scope of the Wildfire Hardening work due to circumstances in the field which could not reasonably have been known earlier; and (iii) serious illness or other extraordinary and unforeseeable circumstances that prevented the timely commencement or completion of the Wildfire Hardening work.
(b) "Good cause" does not include (i) ignorance of the applicable City ordinances or regulations concerning the Wildfire Hardening rebate provided in this chapter or state or local laws relating to the standards with which wildfire hardening work must comply; or (ii) any delays which were within the control or responsibility of the applicant.
Section 2. Copies of this Ordinance shall be posted for two days prior to adoption in the display case located near the walkway in front of Council Chambers, 2134 Martin Luther King Jr. Way. Within 15 days of adoption, copies of this Ordinance shall be filed at each branch of the Berkeley Public Library and the title shall be published in a newspaper of general circulation.