Does a lender PML close an LADBS soft-story Order, or does the owner still buy a separate ordinance engineering package?
Last updated: August 27, 2026
What is PML/SEL?
PML (Probable Maximum Loss) and SEL (Scenario Expected Loss) are Freddie Mac multifamily real estate appraisal terms defined in Freddie Mac Multifamily Seller/Servicer Guide Chapter 64 and ASTM E2026. The lender uses PML/SEL to assess earthquake collateral risk for loan underwriting. This is a real estate appraisal function, not an LADBS ordinance compliance document.
What closes the LADBS Order?
Per Ordinance 183893, the Order is dismissed when 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). The lender's PML/SEL does not satisfy these city requirements.
| Document | Purpose | Who requires it |
|---|---|---|
| PML/SEL (Probable Maximum Loss / Scenario Expected Loss) | Freddie Mac real estate appraisal for earthquake collateral risk (ASTM E2026) | Lender or servicer |
| County Recorder certificate (§91.9306.6) | Department-filed official close-out per Ordinance 183893 | Los Angeles Building and Safety |
| Statement on approved plans (§91.9310.2) | Design professional close-out statement | 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
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?
A lender PML (Probable Maximum Loss) or SEL (Scenario Expected Loss) is a Freddie Mac multifamily real estate appraisal per Chapter 64 and ASTM E2026 used to assess earthquake collateral risk. It does NOT close the LADBS Order to Comply under Ordinance 183893. Per the ordinance, the owner needs official close-out items: the Department files a County Recorder certificate (§91.9306.6) and the design professional puts a statement on the approved plans (§91.9310.2).
What documentation closes an LADBS soft-story Order?
Per Ordinance 183893, the Order is dismissed when 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). This process is distinct from the lender's PML/SEL appraisal.
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 PML/SEL appraisal and also serve as the design professional of record for the LADBS permit. These are separate engagements with different scopes: PML/SEL assesses collateral risk for the lender, while the LADBS permit package documents ordinance compliance for the city.