PML/SEL Report Close City Order?
Last updated: August 27, 2026
What is the difference?
PML/SEL tells the lender whether the building is acceptable collateral for earthquake risk per Freddie Mac Multifamily Guide Chapter 64. The city Order requires proof that the owner completed the mandated seismic retrofit per Ordinance 183893. Separate requirements, different recipients, different standards.
| Document | Purpose | Recipient | Closes Order? |
|---|---|---|---|
| PML/SEL (Probable Maximum Loss / Scenario Expected Loss) | Freddie Mac real estate appraisal for earthquake collateral risk | Lender or servicer | No |
| County Recorder certificate (§91.9306.6) | Official close-out filed by Department | LADBS / County Recorder | Yes — required |
| Statement on approved plans (§91.9310.2) | Design professional close-out statement | LADBS | Yes — required |
What closes the Order?
Per Ordinance 183893, the Order to Comply 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 PML/SEL is not submitted to LADBS and does not satisfy these city requirements.
| Requirement | Document | Submitted to LADBS? |
|---|---|---|
| County Recorder certificate (§91.9306.6) | Department-filed official close-out | Yes |
| Statement on approved plans (§91.9310.2) | Design professional close-out statement | Yes |
| Lender collateral assessment | PML/SEL appraisal (Freddie Mac) | No |
Frequently asked questions
Does a PML/SEL report close a city Order to Comply?
No. A PML (Probable Maximum Loss) or SEL (Scenario Expected Loss) is a Freddie Mac multifamily real estate appraisal per ASTM E2026 for earthquake collateral risk. 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.
Why doesn't LADBS accept the PML/SEL?
PML/SEL addresses lender collateral risk per Freddie Mac Chapter 64, not city ordinance requirements. Per Ordinance 183893, the Department files a County Recorder certificate (§91.9306.6) and the design professional puts a statement on the approved plans (§91.9310.2) to dismiss the Order.