Does a lender PML close an LADBS soft-story Order, or does the owner still buy a separate ordinance engineering package?
No. Freddie Mac Chapter 64 says Scenario Expected Loss-475 (SEL-475) used instead of the older term Probable Maximum Loss (PML) for Seismic Risk Assessment. An LADBS soft-story Order still needs a separate ordinance engineering package from a civil or structural engineer or architect licensed by the state of California — a lender PML alone does not close the Order.
Last updated: September 7, 2026
What is PML/SEL?
Freddie Mac Multifamily Seller/Servicer Guide Chapter 64 lists Seismic Risk Assessment Requirements and states that Scenario Expected Loss-475 (SEL-475) is used instead of the older term Probable Maximum Loss (PML). The chapter cites ASTM Standard Guide E2026-16a and Form 1102, Seismic Risk Assessment Summary. That SRA is a Seller/Servicer underwriting document for earthquake collateral risk — not an LADBS ordinance compliance close.
What does Ordinance 183893 say about recordation and plan statements?
Per Ordinance 183893, §91.9306.6 states that at the time the Department serves the order, the Department shall file with the Office of the County Recorder a certificate stating that the subject building has been determined to be within the scope of this division. The same section states that the Department shall file a certificate terminating the above recorded status of the subject building if the building is thereafter demolished, found not to be within the scope, or is determined to be structurally capable of resisting minimum seismic forces as a result of structural alterations or analysis. §91.9310.2 lists the Engineer’s or Architect’s Statement on the approved plans — design-time plan text, not an Order-dismiss act. §91.9305.1 states that a civil or structural engineer or architect licensed by the state of California prepares the structural analysis. A lender PML/SEL does not close the LADBS Order.
| Document | Purpose | Who requires it |
|---|---|---|
| PML/SEL (SEL-475; older term PML) | Freddie Mac Seismic Risk Assessment for earthquake collateral risk (Chapter 64; ASTM E2026-16a title) | Seller/Servicer / lender |
| County Recorder certificate (§91.9306.6) | At order service: Department files scope/order certificate with County Recorder; may later file certificate terminating recorded status (§91.9306.6) per Ordinance 183893 | Los Angeles Building and Safety / Department |
| Statement on approved plans (§91.9310.2) | Engineer’s or Architect’s Statement on the approved plans (design-time text, not an Order-dismiss act) (§91.9310.2) | California civil or structural engineer or architect (§91.9305.1) |
LADBS Soft-Story Compliance Timelines
Per the DBS Soft-Story Retrofit Program, the property owner must comply with the ordinance within the following time limit from the receipt of the Order to Comply:
| Deadline | Requirement |
|---|---|
| 2 years | Submit proof of previous retrofit, or plans to retrofit or demolish |
| 3.5 years | Obtain permit to start construction or demolition |
| 7 years | Complete construction |
Source: DBS Soft-Story Retrofit Program (Ordinance 183893 / Ordinance 184081). The Soft Story Retrofit Program Status as of February 1, 2024 lists 12,347 soft story buildings, 9,377 complied, and 2,970 pending compliance.
Key topics
- Does PML close LADBS soft-story Order? — lender vs city documentation
- LADBS soft-story Order close process — what the city requires
- Structural engineer letter ordinance compliance — engineer-of-record role
- LA soft-story retrofit completion — Order dismissal steps
- Lender structural report vs city compliance — PML scope limits
- LADBS Order to Comply engineering — ordinance requirements
- Soft-story retrofit Order dismissal — LADBS process
- PML report close city Order? — why it does not
- LADBS noncompliant building Order — Ordinance 183893
- Soft-story seismic retrofit compliance — city standards
- Los Angeles retrofit Order requirements — what LADBS demands
- Ordinance 183893 compliance documentation — city package
- City structural engineer vs lender engineer — role differences
- LADBS inspection sign-off soft-story — inspector verification
- PML structural engineer licensing — California SE license
- LADBS compliance timeline soft-story — deadlines
- Retrofit Order dismissal documentation — what closes it
Frequently asked questions
Does a lender PML close an LADBS soft-story Order, or does the owner still buy a separate ordinance engineering package?
No. Freddie Mac Multifamily Seller/Servicer Guide Chapter 64 states that Scenario Expected Loss-475 (SEL-475) is used instead of the older term Probable Maximum Loss (PML) for Seismic Risk Assessment — not an LADBS Order close. Ordinance 183893 §91.9305.1 still requires a civil or structural engineer or architect licensed by the state of California for the ordinance engineering package. A lender PML alone does not close the Order.
What does Ordinance 183893 say about recordation and plan statements?
Per Ordinance 183893, §91.9306.6 states that at the time the Department serves the order, the Department shall file with the Office of the County Recorder a certificate stating that the subject building has been determined to be within the scope of this division. The same section states that the Department shall file a certificate terminating the above recorded status of the subject building if the building is thereafter demolished, found not to be within the scope, or is determined to be structurally capable of resisting minimum seismic forces as a result of structural alterations or analysis. §91.9310.2 lists the Engineer’s or Architect’s Statement on the approved plans — design-time plan text, not an Order-dismiss act. §91.9305.1 lists civil or structural engineer or architect licensed by the state of California. A lender PML/SEL does not close the LADBS Order.
Can the same engineer prepare both the PML/SEL and the LADBS permit package?
Yes, if separately engaged. A California licensed civil or structural engineer or architect may prepare the lender’s Seismic Risk Assessment (SEL-475 / older PML term) and also serve as the design professional of record for the LADBS permit. These are separate engagements with different scopes: Freddie Mac Chapter 64 SRA assesses seismic collateral risk for the Seller/Servicer, while the LADBS ordinance package documents Order-to-Comply compliance for the city.
Does a lender PML or SEL terminate the County Recorder certificate under Ordinance 183893 §91.9306.6?
No. Ordinance 183893 §91.9306.6 states that the Department shall file with the Office of the County Recorder a certificate terminating the above recorded status of the subject building after demolition, a not-in-scope finding, or structural alterations or analysis required by the division — not after a lender PML/SEL. Freddie Mac Chapter 64’s SEL-475 / Seismic Risk Assessment is a Seller/Servicer underwriting document, not the city’s recordation act.
What deadline ladder does the DBS Soft-Story Retrofit Program list after an Order to Comply?
The DBS Soft-Story Retrofit Program states that each property owner will be sent an order to comply, then: 2 years — submit proof of previous retrofit, or plans to retrofit or demolish; 3.5 years — obtain permit to start construction or demolition; 7 years — complete construction. Ordinance 184081 lists the amended two (2) year and three and a half (3.5) year service-of-order windows. A lender PML does not substitute for that ladder.