Does PML Close LADBS Soft-Story Order?
Last updated: August 27, 2026
Why doesn't PML/SEL satisfy LADBS?
PML/SEL is a real estate appraisal term from Freddie Mac Multifamily Seller/Servicer Guide Chapter 64 and ASTM E2026. The lender uses PML/SEL to assess earthquake collateral risk. Per Ordinance 183893, the LADBS Order requires official close-out items: the Department files a County Recorder certificate (§91.9306.6) and the design professional (a California civil or structural engineer or architect per §91.9305.1) puts a statement on the approved plans (§91.9310.2). These are separate requirements with different purposes.
| Document | Purpose | Satisfies LADBS Order? |
|---|---|---|
| Lender PML/SEL (Probable Maximum Loss / Scenario Expected Loss) | Freddie Mac real estate appraisal for earthquake collateral risk | No |
| County Recorder certificate (§91.9306.6) | Official close-out filed by Department per Ordinance 183893 | Yes — required |
| Statement on approved plans (§91.9310.2) | Design professional close-out statement | Yes — required |
What are the official close-out requirements?
Per Ordinance 183893, the Order is dismissed when the Department files a County Recorder certificate (§91.9306.6) and the design professional puts a statement on the approved plans (§91.9310.2). The lender's PML/SEL appraisal is not part of this process.
Frequently asked questions
Does a lender PML close an LADBS soft-story Order to Comply?
No. A lender PML (Probable Maximum Loss) or SEL (Scenario Expected Loss) is a Freddie Mac multifamily real estate appraisal per ASTM E2026 used to assess earthquake collateral risk for loan underwriting. It does NOT close the LADBS Order to Comply under Ordinance 183893. Per the ordinance, the Department files a County Recorder certificate (§91.9306.6) and the design professional puts a statement on the approved plans (§91.9310.2).
Can I send the PML/SEL to LADBS instead?
No. The PML/SEL appraisal does not meet LADBS requirements. Per Ordinance 183893, the Department files a County Recorder certificate (§91.9306.6) and the design professional (a California civil or structural engineer or architect per §91.9305.1) puts a statement on the approved plans (§91.9310.2) to dismiss the Order.