Existing law generally requires the seller of a single-family residential property to make certain disclosures of natural hazards on a specified statement to a prospective buyer, including whether the property is located in a very high fire hazard severity zone.

This bill, if a single-family residential property is located within a fire hazard severity zone, would require the above-described disclosure in the natural hazard statement to specify whether the property is located in a high or very high fire hazard severity zone. The bill would also clarify that the natural hazard statement is required to include a disclosure as to whether the property is located within a high fire hazard severity zone in a state responsibility area, very high fire hazard severity zone in a state responsibility area, or very high fire hazard severity zone in a local responsibility area.

Existing law generally requires the seller of a single-family residential property to make certain disclosures of natural hazards on a specified statement to a prospective buyer, including whether the property is located in a very high fire hazard severity zone.

This bill, if a single-family residential property is located within a fire hazard severity zone, would require the above-described disclosure in the natural hazard statement to specify whether the property is located in a high or very high fire hazard severity zone. The bill would also clarify that the natural hazard statement is required to include a disclosure as to whether the property is located within a high fire hazard severity zone in a state responsibility area, very high fire hazard severity zone in a state responsibility area, or very high fire hazard severity zone in a local responsibility area.

Existing law generally requires the seller of a single-family residential property to make certain disclosures of natural hazards on a specified statement to a prospective buyer, including whether the property is located in a very high fire hazard severity zone.

This bill, if a single-family residential property is located within a fire hazard severity zone, would require the above-described disclosure in the natural hazard statement to specify whether the property is located in a high or very high fire hazard severity zone. The bill would also clarify that the natural hazard statement is required to include a disclosure as to whether the property is located within a high fire hazard severity zone in a state responsibility area, very high fire hazard severity zone in a state responsibility area, or very high fire hazard severity zone in a local responsibility area.

Existing law requires a person in whom the title of real estate is vested, who afterward, from any cause, has a change of name, to set forth the name in which the person derived title to the real estate in any conveyance of the real estate.

This bill would make nonsubstantive changes to these provisions.

 CONSENT  

Bill No: AB 1280

Author: Maienschein (D)

Amended: 3/23/23 in Assembly

Vote: 21

SENATE JUDICIARY COMMITTEE: 11-0, 6/20/23

AYES: Umberg, Wilk, Allen, Ashby, Caballero, Durazo, Laird, Min, Niello, Stern, Wiener

ASSEMBLY FLOOR: 65-0, 4/10/23 (Consent) - See last page for vote

SUBJECT: Fire hazard severity zones: disclosures

SOURCE: California Association of Realtors

DIGEST:

This bill revises the Natural Hazard Disclosure Statement that must be provided by a property seller to a potential buyer to include more specific disclosures regarding whether the property falls within current local, or state, high and very high fire hazard severity zones.

ANALYSIS:

Existing law:

1. Requires a seller of residential property to make disclosures of natural hazards on a specified statement, called the Natural Hazard Disclosure Statement (NDS), to a prospective buyer if the property is within zones or areas:
   1. A special flood zone area as defined by the Federal Emergency Management Agency;
   2. An area of potential flooding as shown on a dam failure inundation map created by the Department of Water Resources;
   3. A very high fire hazard severity zone as identified by the Department of Forestry and Fire Protection;
   4. A wildland area that may contain substantial forest fire risks and hazards as identified by the Department of Forestry and Fire Protection;
   5. An earthquake fault zone as identified by the California Geological Survey; and
   6. A seismic hazard zone as identified by the California Geological Survey. (Civ. Code § 1103.2 (a).)
2. Requires, in the event an earthquake fault zone, seismic hazard zone, very high fire hazard severity zone, or wildland fire area map or accompanying information is not of sufficient accuracy or scale that a reasonable person can determine if the subject real property is included in a natural hazard area, the seller or seller’s agent to mark “Yes” on the Natural Hazard Disclosure Statement. (Civ. Code § 1103.2 (b).)
3. Requires the State Fire Marshal to identify areas in the state as moderate, high, and very high fire hazard severity zones based on consistent statewide criteria and based on the severity of fire hazard that is expected to prevail in those areas. (Gov. Code § 51178 & Pub. Res. Code § 4202.)
4. Requires the Board of Forestry and Fire Protection to classify all lands within the state, without regard to any classification of lands made by or for any federal agency or purpose, for the purpose of determining areas in which the financial responsibility of preventing and suppressing fires is primarily the responsibility of the state, commonly referred to as the “State Responsibility Area.” (Pub. Res. Code § 4125 (a).)
5. Provides that the following areas are not to be included in the State Responsibility Area:
   1. Lands owned or controlled by the federal government or any agency of the federal government; and
   2. Lands within the exterior boundaries of any city, except a city and county with a population of less than 25,000 if, at the time the city and county government is established, the county contains no municipal corporations, typically referred to as a local responsibility area. (Pub. Res. Code § 4127.)

This bill:

1. Modifies the NDS to require disclosure of whether the property is within a high or very high fire hazard severity zone (FHSZ), and indicate specifically if the property is:
   1. a high FHSZ in a state responsibility area;
   2. a very High FHSZ in a state responsibility area; or
   3. a very High FHSZ in a local responsibility area.
2. Modifies subsection (b) of Civil Code Section 1103.2 to include an obligation to mark yes on the NDS that the property is in a high or very high FHSZ if a high or very high FHSZ map is not of sufficient accuracy or scale for a reasonable person to determine if the property is within a natural hazard area.

Comments

According to the author:

California has added fire severity zones that are not included in the current statutory residential real estate Natural Hazard Disclosure Form. To update the disclosure to align with the new zones, statutory direction is required. By adding additional fire mapping zones to the residential Natural Hazard Disclosure, this bill expands the breadth of knowledge a buyer receives when making a home purchase, which is often the most consequential purchase in person’s lifetime. Buyers deserve to understand the details of the property they are purchasing prior to the close of the transaction.

The state of wildfire hazards in California. With mostly semi-arid, desert, seasonally-dry Mediterranean climates, California’s unique geography has long made the state prone to wildfires. Yet in recent years wildfires have become an increasingly major risk across California. Of the ten largest wildfires in California’s history, seven have occurred within the last five years. In 2020 alone, over 4.2 million acres of land was consumed by wildfires. That is the equivalent of the entire area of Los Angeles, Orange, Santa Clara, and Santa Cruz counties combined. These fires have also been increasingly more destructive. The Camp fire, which swept through the city of Paradise in 2018, destroyed 18,804 structures and killed 85 people. Part of the reason for the destructiveness of recent fires relates to how much housing in California is built in areas that are next to areas of wildland (often called Wildland Urban interface, or WUI), as such areas constitute significant risks to man-made structures from wildfires in adjacent wildland as well as from the interspersed nature of fire fuel among urban development that characterizes WUIs. In recent years, California has increasingly built homes in and moved into WUIs and areas next to wildland at risk of wildfires. Given this continued development in WUIs and high risk fire zones, and the link between climate change and the increased prevalence and severity of wildfires, wildfires in California will likely continue to pose even greater threats to Californians and homes and structures throughout the state.

The history of Fire Hazard Severity Zones. In 1980, a severe wildfire broke out in the San Bernardino Mountains, killing four people and destroying 325 structures. In response, the California Legislature passed SB 1916 (Chapter 806, Statutes of 1982) to require the creation of fire hazard severity zone maps for all areas of California that are considered a state responsibility for fire protection (State Responsibility Areas, or SRA). These maps were created to help identify measures for limiting the spread of major fires like the 1980 fire and to help reduce the potential intensity of uncontrolled fires that threaten resources, life or property. The first map was published in 1985. Subsequent fires and resulting legislation expanded the state requirements for creating fire hazard severity zone maps to local responsibility areas (LRAs), which are areas that are incorporated cities and therefore where local jurisdictions are responsible for fire protection and prevention. In 2003, another fire, the Cedar fire in San Diego, prompted the creation of state building code standards as mitigation measures to such destructive fires in areas that are zoned as very high fire hazard severity zones.

In 2007, in order to fulfil the state requirements for mapping fire hazard severity zones in SRA and LRAs, Cal Fire adopted a statewide consistent mapping model for FHSZs. This model included moderate, high, and very high zones, and assessed these zones by: prior fire history, vegetation, predicted flame length, ember production, terrain, and climate. While this new model was mapped for SRAs in 2007 and for LRAs in 2011, the maps were updated for SRAs just this year. Considering the growth in large, destructive wildfires over the last few years, as well as the growth in WUI, these new maps will likely be considerably different and include more areas of California not previously zoned as high or very high fire hazard severity zones.

The implications of Fire Hazard Severity Zone designations on properties. The FHSZs have significant implications for homeowners who are considering buying a home that may fall into one of the moderate, high, or very high fire hazard severity zones. FHSZs are used for implementing building standards for new construction in WUIs, including requirements around the use of fire-resistant roofing materials or determining road width. FHSZs are also used for allocating resources and in long-range planning by cities. Homes that fall into very high zones will also be subject to additional requirements for maintaining defensible space, and may have more difficulty obtaining homeowner’s insurance.

The impact of this bill. Current state law requires that property sellers disclose if the property for sale is located in an area at risk of natural disasters, including disasters like earthquakes, floods, and wildfires. These disclosures are listed on the Natural Hazard Disclosure Statement (NDS), as described in Civil Code section 1103.2. Every NDS allows for a three day right of rescission of a contract for purchase of a property, thus providing potential buyers with vital information about the risks and hazards present for the property they are purchasing and an opportunity to back out after considering any hazards present. The current NDS, which was last amended in 1998, before the current FHSZ models and maps were created, only requires the disclosure of whether the property falls into a very high FHSZ, and does not distinguish between high or very high zones, or whether the property is in an SRA or LRA. As different rules and obligations apply to high and very high FHSZs, as well as to SRA and LRA properties under either statewide mitigation rules or local rules, this bill will provide potential property buyers with more information about their potential obligations and hazards than currently exists.

FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No

SUPPORT:

California Association of Realtors (source)

Livable California

Orange County Realtors

OPPOSITION:

None received

ARGUMENTS IN SUPPORT: According to the California Association of Realtors, the bill’s sponsor:

CalFire is updating its fire hazard severity mapping and the new maps will be completed later this year. The new maps will recategorize the fire severity of different areas and areas that may not have been high-risk in the previous iterations of the maps may now be categorized as riskier. Because of the incredible risk that fires pose to residential property and the fact that in this era of climate change and prolific wildfire, homebuyers can easily be unaware that the community they are moving to may be a High Fire Hazard Severity Zone, [the association’s] member REALTORS feel that it is imperative to add this additional zone to the Natural Hazard Disclosure Statement.

ASSEMBLY FLOOR: 65-0, 4/10/23

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bennett, Berman, Boerner Horvath, Bonta, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Connolly, Megan Dahle, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Joe Patterson, Pellerin, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Santiago, Schiavo, Soria, Ta, Ting, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wood, Zbur, Rendon

NO VOTE RECORDED: Bauer-Kahan, Bryan, Chen, Davies, Dixon, Essayli, Irwin, Mathis, McKinnor, Jim Patterson, Petrie-Norris, Quirk-Silva, Sanchez, Valencia, Wilson

Prepared by: Ian Dougherty / JUD. / (916) 651-4113

6/23/23 12:29:14

**** END ****

SENATE JUDICIARY COMMITTEE

Senator Thomas Umberg, Chair

2023-2024 Regular Session

Bill No: AB 1280 (Author:Maienschein)

Version: March 23, 2023

Hearing Date: June 20, 2023

Fiscal: No

Urgency: No

Consultant: ID

SUBJECT

Fire hazard severity zones: disclosures

DIGEST

This bill revises the Natural Hazard Disclosure Statement that must be provided by a property seller to a potential buyer to include more specific disclosures regarding whether the property falls within current local, or state, high and very high fire hazard severity zones.

EXECUTIVE SUMMARY

Current law requires sellers of property to make certain disclosures about the property to a potential buyer, including disclosures regarding natural disaster risk. However, while regulations relating to mitigating fire hazards and risks have changed over the years to reflect changes in the rising fire risks in the state, the Natural Hazard Disclosure Statement has not been amended since 1998 to reflect these changes. These changes may have significant impacts on the risk, required maintenance of, or ability to obtain insurance for a property.

To ensure that these new fire severity zones are represented in the disclosures required by law, this bill revises the specific disclosures required relating to a property’s location in a high fire hazard severity zone to require disclosure of whether the property is in a high or very high fire hazard severity zone, and whether the zone is a local or state designation.

This bill is sponsored by the California Association of Realtors and is supported by the Orange County Realtors. There is no known opposition.

PROPOSED CHANGES TO THE LAW

Existing law:

1. Requires a seller of residential property to make disclosures of natural hazards on a specified statement, called the Natural Hazard Disclosure Statement (NDS), to a prospective buyer if the property is within zones or areas:
   1. A special flood zone area as defined by the Federal Emergency Management Agency;
   2. An area of potential flooding as shown on a dam failure inundation map created by the Department of Water Resources;
   3. A very high fire hazard severity zone as identified by the Department of Forestry and Fire Protection;
   4. A wildland area that may contain substantial forest fire risks and hazards as identified by the Department of Forestry and Fire Protection;
   5. An earthquake fault zone as identified by the California Geological Survey; and
   6. A seismic hazard zone as identified by the California Geological Survey. (Civ. Code § 1103.2 (a).)
2. Requires, in the event an earthquake fault zone, seismic hazard zone, very high fire hazard severity zone, or wildland fire area map or accompanying information is not of sufficient accuracy or scale that a reasonable person can determine if the subject real property is included in a natural hazard area, the seller or seller’s agent to mark “Yes” on the Natural Hazard Disclosure Statement. (Civ. Code § 1103.2 (b).)
3. Requires the State Fire Marshal to identify areas in the state as moderate, high, and very high fire hazard severity zones based on consistent statewide criteria and based on the severity of fire hazard that is expected to prevail in those areas. (Gov. Code § 51178 & Pub. Res. Code § 4202.)
4. Requires the Board of Forestry and Fire Protection to classify all lands within the state, without regard to any classification of lands made by or for any federal agency or purpose, for the purpose of determining areas in which the financial responsibility of preventing and suppressing fires is primarily the responsibility of the state, commonly referred to as the “State Responsibility Area.” (Pub. Res. Code § 4125 (a).)
5. Provides that the following areas are not to be included in the State Responsibility Area:
   1. Lands owned or controlled by the federal government or any agency of the federal government; and
   2. Lands within the exterior boundaries of any city, except a city and county with a population of less than 25,000 if, at the time the city and county government is established, the county contains no municipal corporations, typically referred to as a local responsibility area. (Pub. Res. Code § 4127.)

This bill:

1. Modifies the NDS to require disclosure of whether the property is within a high or very high fire hazard severity zone (FHSZ), and indicate specifically if the property is:
   1. a high FHSZ in a state responsibility area;
   2. a very High FHSZ in a state responsibility area; or
   3. a very High FHSZ in a local responsibility area.
2. Modifies subsection (b) of Civil Code Section 1103.2 to include an obligation to mark yes on the NDS that the property is in a high or very high FHSZ if a high or very high FHSZ map is not of sufficient accuracy or scale for a reasonable person to determine if the property is within a natural hazard area.

COMMENTS

1. Author’s comment

According to the author:

California has added fire severity zones that are not included in the current statutory residential real estate Natural Hazard Disclosure Form. To update the disclosure to align with the new zones, statutory direction is required. By adding additional fire mapping zones to the residential Natural Hazard Disclosure, this bill expands the breadth of knowledge a buyer receives when making a home purchase, which is often the most consequential purchase in person’s lifetime. Buyers deserve to understand the details of the property they are purchasing prior to the close of the transaction.

1. Sponsor’s comment

According to the California Association of Realtors, the bill’s sponsor:

CalFire is updating its fire hazard severity mapping and the new maps will be completed later this year. The new maps will recategorize the fire severity of different areas and areas that may not have been high-risk in the previous iterations of the maps may now be categorized as riskier. Because of the incredible risk that fires pose to residential property and the fact that in this era of climate change and prolific wildfire, homebuyers can easily be unaware that the community they are moving to may be a High Fire Hazard Severity Zone, [the association’s] member REALTORS feel that it is imperative to add this additional zone to the Natural Hazard Disclosure Statement.

1. The state of wildfire hazards in California

With mostly semi-arid, desert, seasonally-dry Mediterranean climates, California’s unique geography has long made the state prone to wildfires. Yet in recent years wildfires have become an increasingly major risk across California. Of the ten largest wildfires in California’s history, seven have occurred within the last five years.^[1] In 2020 alone, over 4.2 million acres of land was consumed by wildfires.^[2] That is the equivalent of the entire area of Los Angeles, Orange, Santa Clara, and Santa Cruz counties combined. These fires have also been increasingly more destructive. The Camp fire, which swept through the city of Paradise in 2018, destroyed 18,804 structures and killed 85 people.^[3] Part of the reason for the destructiveness of recent fires relates to how much housing in California is built in areas that are next to areas of wildland (often called Wildland Urban interface, or WUI), as such areas constitute significant risks to man-made structures from wildfires in adjacent wildland as well as from the interspersed nature of fire fuel among urban development that characterizes WUIs. In recent years, California has increasingly built homes in and moved into WUIs and areas next to wildland at risk of wildfires.^[4] Given this continued development in WUIs and high risk fire zones, and the link between climate change and the increased prevalence and severity of wildfires, wildfires in California will likely continue to pose even greater threats to Californians and homes and structures throughout the state.^[5]

1. The history of Fire Hazard Severity Zones

In 1980, a severe wildfire broke out in the San Bernardino Mountains, killing four people and destroying 325 structures. In response, the California Legislature passed SB 1916 (Ch. 806, Stats. 1982) to require the creation of fire hazard severity zone maps for all areas of California that are considered a state responsibility for fire protection (State Responsibility Areas, or SRA). These maps were created to help identify measures for limiting the spread of major fires like the 1980 fire and to help reduce the potential intensity of uncontrolled fires that threaten resources, life or property.^[6] The first map was published in 1985. Subsequent fires and resulting legislation expanded the state requirements for creating fire hazard severity zone maps to local responsibility areas (LRAs), which are areas that are incorporated cities and therefore where local jurisdictions are responsible for fire protection and prevention. In 2003, another fire, the Cedar fire in San Diego, prompted the creation of state building code standards as mitigation measures to such destructive fires in areas that are zoned as very high fire hazard severity zones.

In 2007, in order to fulfil the state requirements for mapping fire hazard severity zones in SRA and LRAs, Cal Fire adopted a statewide consistent mapping model for FHSZs. This model included moderate, high, and very high zones, and assessed these zones by: prior fire history, vegetation, predicted flame length, ember production, terrain, and climate.^[7] While this new model was mapped for SRAs in 2007 and for LRAs in 2011, the maps were updated for SRAs just this year.^[8] Considering the growth in large, destructive wildfires over the last few years, as well as the growth in WUI, these new maps will likely be considerably different and include more areas of California not previously zoned as high or very high fire hazard severity zones.

1. The implications of Fire Hazard Severity Zone designations on properties

The FHSZs have significant implications for homeowners who are considering buying a home that may fall into one of the moderate, high, or very high fire hazard severity zones. FHSZs are used for implementing building standards for new construction in WUIs, including requirements around the use of fire-resistant roofing materials or determining road width. FHSZs are also used for allocating resources and in long-range planning by cities. Homes that fall into very high zones will also be subject to additional requirements for maintaining defensible space, and may have more difficulty obtaining homeowner’s insurance.

1. The impact of this bill

Current state law requires that property sellers disclose if the property for sale is located in an area at risk of natural disasters, including disasters like earthquakes, floods, and wildfires. These disclosures are listed on the Natural Hazard Disclosure Statement (NDS), as described in Civil Code section 1103.2. Every NDS allows for a three day right of rescission of a contract for purchase of a property, thus providing potential buyers with vital information about the risks and hazards present for the property they are purchasing and an opportunity to back out after considering any hazards present. The current NDS, which was last amended in 1998, before the current FHSZ models and maps were created, only requires the disclosure of whether the property falls into a very high FHSZ, and does not distinguish between high or very high zones, or whether the property is in an SRA or LRA. As different rules and obligations apply to high and very high FHSZs, as well as to SRA and LRA properties under either statewide mitigation rules or local rules, this bill will provide potential property buyers with more information about their potential obligations and hazards than currently exists.

SUPPORT

California Association of Realtors (sponsor)

Orange County Realtors

OPPOSITION

None known

RELATED LEGISLATION

Pending Legislation:

SB 470 (Alvarado-Gil, 2023) extends prior authorization to January 1, 2026 for specified state agencies to make grants and direct expenditures for drought relief, and expands these funds to projects that reduce the risk of wildfires through water delivery system improvements in high and very high FHSZ communities. This bill is currently in in the Assembly Committee on Water, Parks, and Wildlife.

AB 478 (Connolly 2023) regulates residential property insurance and would limit yearly premium increases for properties in high or very high FHSZs for insureds over the age of 65, and prohibit insurers from dropping insureds over the age of 65 solely based on the fact that the property is located in a high or very high FHSZ. This bill is currently in the Assembly Committee on Insurance.

SB 571 (Allen 2023) requires a proponent of a new development that would require the evacuation of 40 or more vehicles and is located in a high or very high FHSZ to create and submit an evacuation plan with the development proposal to the local government, and gives any person the ability to sue for declaratory and equitable relief if such measures are not followed. This bill is currently in the Senate Governance and Finance Committee.

Prior Legislation:

AB 38 (Wood, Ch. 391, Stats. 2019) required notices about low cost home hardening measures to be provided to all property buyers in high fire hazard severity zones.

AB 248 (Torlakson, Ch. 876, Stats. 1999) created a separate statutory section for Natural Disclosure Statements and the right to rescind a contract to purchase within three days of delivery of the NDS.

AB 337 (Bates, Ch. 1188, Stats. 1992) required the state to map very high fire hazard severity zones for all areas of the state, regardless of whether it falls under state or local responsibility, and required local jurisdictions to designate such very high fire hazard severity zones in their jurisdiction.

SB 1916 (Ch. 806, Stats. 1982) required the classification of all land within the State Responsibility Area in accordance with the severity of fire hazard present, for the purpose of identifying measures to be taken to reduce the rate of spreading and to reduce the potential intensity of uncontrolled fires that threaten resources, life, or property.

PRIOR VOTES:

Assembly Floor (Ayes 65, Noes 0)

Assembly Judiciary Committee (Ayes 9, Noes 0)

**************

1. “Top 20 Largest California Wildfires,” Cal. Dept. of Forestry & Fire Protection (Oct. 2022), available at https://www.fire.ca.gov/our-impact/statistics. ↑

2. Julie Cart, “California’s 2020 fire siege: wildfires by the numbers,” Cal Matters (Jul. 30, 2021), available at https://calmatters.org/environment/2021/07/california-fires-2020/. ↑

3. “Camp Fire,” California Department of Forestry and Fire Protection (Oct. 24, 2022 110:25 am), available https://www.fire.ca.gov/incidents/2018/11/8/camp-fire/. ↑

4. Gabrielle Canon, “ ‘Urban fire storm’: suburban sprawl raising risk of destructive wildfires,” The Guardian (Jan. 6, 2022 6:00 pm), available at https://www.theguardian.com/world/2022/jan/06/urban-fire-storm-suburban-sprawl-wildfires-colorado. ↑

5. “Wildfire climate connection,” National Oceanic and Atmospheric Administration (Aug. 8, 2022), available at https://www.noaa.gov/noaa-wildfire/wildfire-climate-connection. ↑

6. See Cal. Pub. Resources Code § 4201. ↑

7. See “Fire Hazard Severity Zones,” Cal. Dept. of Forestry & Fire Protection, available at https://osfm.fire.ca.gov/divisions/community-wildfire-preparedness-and-mitigation/wildfire-preparedness/fire-hazard-severity-zones/. ↑

8. “Fire Hazard Severity Zones Map,” Cal. Dept. of Forestry & Fire Protection (2023), https://osfm.fire.ca.gov/divisions/community-wildfire-preparedness-and-mitigation/wildfire-preparedness/fire-hazard-severity-zones/fire-hazard-severity-zones-map/; “CAL FIRE Releases Updated Fire Hazard Severity Zone Map for Public Comment, Will Host 57 Public Hearings throughout California,” Yolo County (Dec. 15, 2022 8:38 am), available at https://www.yolocounty.org/Home/Components/News/News/13213/4918. ↑

Date of Hearing: March 28, 2023

ASSEMBLY COMMITTEE ON JUDICIARY

Brian Maienschein, Chair

ABPCA Bill Id:AB 1280

Author:(Maienschein) – As Amended Ver:March 23, 2023

Proposed Consent

SUBJECT: Fire hazard severity zones: disclosures

KEY ISSUE: should a new disclosure be added to the Natural Hazard Disclosure Statement provided to property buyers to include a new category regarding whether a property lies within an area designated a high fire severity zone?

SYNOPSIS

As climate change is fueling larger and more dangerous wildfires across California, the Department of Forestry and Fire Protection and its independent regulatory arm, the Board of Forestry and Fire Protection, have taken numerous steps to enhance state regulations to improve wildfire safety and resilience. As a result of these efforts, the Department and the Board have updated the maps delineating a parcel’s risk of wildfire and numerous regulations, specifying the types of land use and defensible space requirements that correspond with a property’s wildfire risk. Although the Legislature has taken some steps to better inform property owners of these new requirements, the basic Natural Hazard Disclosure Statement that is provided to all would-be property purchasers has not been updated.

This straightforward measure would update the Natural Hazard Disclosure Statement to include disclosures if a property is located in a high fire hazard severity zone as determined by the Department of Forestry and Fire Protection. This measure would also require properties in areas deemed to be located in both high and very high fire hazard severity zones to disclose whether the property is located in a state or local responsibility area as designated by the Board of Forestry and Fire Protection. The measure is sponsored by the California Association of Realtors who note that the existing disclosure statement has remained largely unchanged since its creation in 1998, and that these new disclosures will help property buyers better understand what type of wildfire risks the property faces and what regulations related to hazard mitigation apply to the property. As currently in print this bill has no known opposition.

SUMMARY: Revises the Natural Hazard Disclosure Statement provided by a property seller to a buyer to include disclosures if a property is within a high fire hazard severity zone. Specifically, this bill:

1. Requires the Natural Hazard Disclosure Statement to include a disclosure if a property is located in a high fire hazard severity zone.
2. Requires, for properties in a high or very high fire hazard severity zone, the Natural Hazard Disclosure Statement to include a disclosure regarding whether a property falls within a state or local responsibility area.
3. Adds high fire severity zones to provisions of the existing law providing guidance for property sellers who’s property is located in a region of a hazard map or accompanying information is not of sufficient accuracy or scale that a reasonable person can determine if the subject real property is included in a natural hazard area.

EXISTING LAW:

1. Requires a property seller and the sellers agent to fill out a Natural Hazard Disclosure Statement that discloses if a property is within any of the following areas prone to natural hazards:
2. A special flood zone area as defined by the Federal Emergency Management Agency;
3. An area of potential flooding as shown on a dam failure inundation map created by the Department of Water Resources;
4. A very high fire hazard severity zone as identified by the Department of Forestry and Fire Protection;
5. A wildland area that may contain substantial forest fire risks and hazards as identified by the Department of Forestry and Fire Protection;
6. An earthquake fault zone as identified by the California Geological Survey; and
7. A seismic hazard zone as identified by the California Geological Survey. (Civil Code Section 1103.2 (a).)
8. Requires, in the event an earthquake fault zone, seismic hazard zone, very high fire hazard severity zone, or wildland fire area map or accompanying information is not of sufficient accuracy or scale that a reasonable person can determine if the subject real property is included in a natural hazard area, the seller or seller’s agent to mark “Yes” on the Natural Hazard Disclosure Statement. (Civil Code Section 1103.2 (b).)
9. Requires the State Fire Marshal to identify areas in the state as moderate, high, and very high fire hazard severity zones based on consistent statewide criteria and based on the severity of fire hazard that is expected to prevail in those areas. (Government Code Section 51178 & Public Resources Code Section 4202.)
10. Requires the Board of Forestry and Fire Protection to classify all lands within the state, without regard to any classification of lands made by or for any federal agency or purpose, for the purpose of determining areas in which the financial responsibility of preventing and suppressing fires is primarily the responsibility of the state, commonly referred to as the “State Responsibility Area.” (Public Resources Code Section 4125 (a).)
11. Provides that the following areas are not to be included in the State Responsibility Area:
    1. Lands owned or controlled by the federal government or any agency of the federal government; and
    2. Lands within the exterior boundaries of any city, except a city and county with a population of less than 25,000 if, at the time the city and county government is established, the county contains no municipal corporations, typically referred to as a local responsibility area. (Public Resources Code Section 4127.)
12. Requires the State Geologist to create and periodically update maps delineating the earthquake fault zones sufficiently wide to encompass all potentially and recently active traces. (Public Resources Code Section 2622.)
13. Requires the State Geologist to create and periodically update maps delineating potential seismic hazards that would threaten public health and safety in the event of an earthquake. (Public Resources Code Section 2696.)
14. Requires an owner of a state jurisdictional dam to submit to the Department of Water Resources an inundation map that shows the area that would be subject to flooding under various failure scenarios unique to the dam and the critical appurtenant structures of the dam and requires the Department to make the map available to the public. (Water Code Section 6160.)

FISCAL EFFECT: As currently in print this bill is keyed non-fiscal.

COMMENTS: In recent years, an increasing number of wildfires have burned outside of wildland areas and into more urban settings. While persons living in forested areas and those on the periphery of developed areas, known as the wildland urban interface, have long faced significant risks from wildfires, as a result of climate change, more Californians face wildfire risks than ever before. Recognizing this growing risk, and that many Californians in urbanized areas may not fully appreciate the danger to their property, this measure updates the Natural Hazard Disclosure Statement that a property seller must provide to a property buyer to include disclosures regarding the property’s location in a high fire hazard severity zone. This bill would ensure that more Californians are properly aware of their individual property’s risk to wildfires. In support of this bill, the author writes:

California has added fire severity zones that are not included in the current statutory residential real estate Natural Hazard Disclosure Form. To update the disclosure to align with the new zones, statutory direction is required. By adding additional fire mapping zones to the residential Natural Hazard Disclosure, this bill expands the breadth of knowledge a buyer receives when making a home purchase, which is often the most consequential purchase in person’s lifetime. Buyers deserve to understand the details of the property they are purchasing prior to the close of the transaction.

Existing law seeks to alert prospective property buyers to the natural hazards that may impact their properties. California has some of the most diverse landscapes of any state in the country. From conifer forests in the Sierra, to the mighty rivers of the Central Valley, to the chaparral adorned cliffs overlooking the ocean, this state’s unique geology and climate makes it one of the most desired places to live. However, along with California’s natural beauty comes a myriad of natural hazards presenting dangers to California property owners. Despite significant urbanization in some areas of the state, these risks persist. Accordingly, state law requires the sellers of residential property to notify would-be buyers of the natural hazards impacting a property. Thus existing law requires property sellers to disclose if a property is located in a flood zone, on or near an earthquake fault or other seismic hazard zone, and in specified areas prone to wildfires. To assist property owners in making these disclosures, existing law requires state agencies, most notably the Department of Water Resources, the Department of Forestry and Fire Protection, and the California Geological Survey (within the Department of Conservation) to draft an array of hazard maps outlining what portions of the state are most at risk for these various natural calamities. State law requires these maps to serve as the basis for disclosing whether or not a property is in a hazard area. The law also provides that a failure to properly disclose the existence of these hazards may expose a property seller to damages should a natural disaster later occur.

Over the past decade, wildfires are becoming an increasing threat to urban areas. Throughout California’s history the state has had to contend with destructive wildfires impacting communities that were constructed amongst or adjacent to timber and chaparral forests. These areas, commonly referred to as the wildland urban interface, have long been considered some of the most fire-prone areas in the state. Indeed, many of these areas have been classified by the Department of Forestry and Fire Protection as belonging to “very high fire hazard severity zones.” As a result of this designation the properties within a very high fire hazard zone are subject to the strictest requirements from the building codes, “Fire Safe” regulations, and defensible space requirements. Properties not immediately in the wildland urban interface but subject to fire risks are now characterized as being in “high fire hazard severity zones.” Until recently, the existing law, regulations, and disclosures governing these properties was more lenient. In addition to the fire severity zone scheme, additional classifications have dictated what rules apply to various properties. The very high and high severity zone classifications typically only apply to land deemed by the Board of Forestry and Fire Protection to be within the state’s responsibility. Land overseen by local and federal authorities fall outside of the State Responsibility Area had been subject to other rules. However, new regulations from the Department and the Board are increasingly specifying new rules for properties within the local responsibility areas.

Prior to the growth of climate change-driven catastrophic wildfires over the last decade, these distinctions generally worked. However, several fires have occurred in urban areas not deemed to be at significant risk for catastrophic wildfires. For example, the 2017 Tubbs Fire in Santa Rosa burned into an urban area that was not deemed to be in a very high fire hazard severity zone, and yet the Tubbs Fire destroyed over five thousand structures. (https://osfm.fire.ca.gov/fire-hazard-severity-zones-maps-2022/.) In the wake of these fires, both the Department and Board of Forestry and Fire Protection are dramatically strengthening the regulations regarding building construction and defensible space in high and very high fire severity zones in both state and local responsibility areas. (See, e.g. 2023 Update to the State Minimum Fire Safe Regulations, 14 C.C.R Section 17000 et seq.) However, existing law does not necessarily alert property owners to these dangers, unless the property owner is subject to one of the new regulations being promulgated by the Department or the Board. Accordingly, many home buyers in urban areas may still not fully appreciate the risk wildfires pose to their property.

This bill. Although some legislation improving notices regarding one’s presence in a high fire hazard severity zone have been adopted since the Tubbs Fire, including a bill requiring notices about low-cost home hardening measures to be provided to all property buyers in high fire hazard severity zones (AB 38 (Wood) Chap. 391, Stats. 2019), the actual real property disclosure form outlined in statute has not been modified. Thus, this straightforward measure updates the Natural Hazard Disclosure Statement to include disclosures about high fire hazard severity zones. Additionally, this measure requires a property seller to disclose whether or not the property is located in a state or local responsibility area. Finally, because the maps outlining fire severity and state responsibility areas can be unclear when viewed at the individual street or parcel level, especially along zone borders, this measure adds references to high fire hazard severity zones to the instructions to real estate professionals regarding how to properly fill out the Natural Hazard Disclosure Statement if a property’s status is ambiguous.

ARGUMENTS IN SUPPORT: This measure is sponsored by the California Association of Realtors who note that the Natural Hazard Disclosure Statement has remained largely unchanged in the 25 years since its creation, despite the growing risk of climate change-driven natural hazards. In support of updating the disclosure statement, they write:

The Natural Hazard Disclosure Statement (NHDS), located in Civil Code Sec. 1103.2, has not been substantively updated since it was added to the law in 1998. At that time, six different hazards were included in the Natural Hazard Disclosure Statement, three of which were already disclosed under law. These were: 1) earthquake fault zones; 2) seismic hazard zones; 3) FEMA flood zones; 4) dam inundation zones; 5) wildlife fire areas; and 6) very high fire hazard severity zones. Every NHDS comes with a three day right of recission of the contract for purchase of property so that the potential buyer has the opportunity to assess the risk of the property they are purchasing. By agreeing to proceed with the sale after reviewing the report, the risks become the buyer’s responsibility to further investigate and mitigate the risks as the buyer deems appropriate.

The past several years have shown us the incredible dynamism of California’s climate. Among other natural disasters, wildfires especially have wreaked havoc across California. Wildfire is no longer a season in California, but a yearlong risk. In 2017, wildfires in California destroyed more than 11,000 structures. In 2018, the Camp Fire in Paradise, California destroyed more than 18,000 structures. Since then, fires have continued to cause billions of dollars of losses in our state.

CalFire is updating its fire hazard severity mapping and the new maps will be completed later this year. The new maps will recategorize the fire severity of different areas and areas that may not have been high-risk in the previous iterations of the maps may now be categorized as riskier. Because of the incredible risk that fires pose to residential property and the fact that in this era of climate change and prolific wildfire, homebuyers can easily be unaware that the community they are moving to may be a High Fire Hazard Severity Zone, C.A.R.’s member REALTORS ® feel that it is imperative to add this additional zone to the Natural Hazard Disclosure Statement.

REGISTERED SUPPORT / OPPOSITION:

Support

California Association of Realtors (sponsor)

Opposition

None on file

Analysis Prepared by: Nicholas Liedtke / JUD. / (916) 319-2334