Planning a seismic retrofit for your Cow Hollow home but unsure how to pay for it without surprises? You are not alone. Between grants, specialized loans, and property tax rules, there are real ways to manage costs if you know where to look. This guide breaks down the funding options and tax benefits that apply in San Francisco, plus a simple plan to get you started. Let’s dive in.
Seismic funding in Cow Hollow
San Francisco is a high‑risk earthquake area, and the city continues to expand screening and retrofit efforts that affect neighborhoods like Cow Hollow. Recent city action requires preliminary screening of many concrete buildings, a step that could lead to future retrofit mandates for some owners (local coverage). That makes it smart to understand your financing choices now, whether you own a single‑family home, a condo in a small HOA, or a multifamily property.
Grants you can use
Earthquake Brace + Bolt (EBB)
EBB is a statewide grant for older wood‑frame homes with a raised foundation or crawlspace. Typical brace‑and‑bolt jobs cost about $3,000 to $7,000, and EBB grants have been $3,000 per property, with possible supplemental help for income‑eligible households. Applications run in limited windows and are often lottery‑based. Do not start work before approval, and confirm eligibility and timelines in the CRMP FAQs.
Earthquake Soft‑Story (ESS)
ESS targets single‑family “living‑space‑over‑garage” homes that need soft‑story reinforcement. Reimbursement has covered up to about 75% of eligible costs, with caps that have ranged roughly $10,000 to $13,000 depending on the program year and home type. ESS has stricter ZIP code and occupancy rules, so verify your address and timing on the CRMP ESS page. Remember, you must wait for program approval before starting work.
Grant tax treatment
According to CRMP, these retrofit grants are treated as disaster‑mitigation payments and are not taxable at the federal or California level. Your situation can vary, so keep records and check with a tax professional.
Loan and financing paths
CalCAP seismic loans
California’s CalCAP Seismic Safety Program helps private lenders offer retrofit loans by providing a state‑backed loan loss reserve. You work with a participating lender on standard loan terms, and the lender enrolls your loan in the program. Eligible projects include residential seismic retrofits, with enrolled amounts historically up to $250,000. Get program details and lender information from the CalCAP Seismic FAQ.
PACE in San Francisco
San Francisco’s PACE options have been used to fund soft‑story work with long terms repaid through a special assessment on your property tax bill. PACE can finance up to 100% of project costs, often including soft costs, and liens typically remain with the property if you sell. Rules vary by provider and property type, and mortgage lender consent is often required. Review city guidance and providers through the San Francisco ESIP page.
Renovation mortgages
If you are buying or refinancing, FHA 203(k) can roll retrofit costs into your mortgage. The Standard 203(k) covers structural work like seismic upgrades for qualifying primary residences, while the Limited version is for smaller non‑structural jobs. Conventional renovation loans such as Fannie Mae HomeStyle or Freddie Mac CHOICERenovation can serve a similar purpose. See the FHA 203(k) overview for eligibility and scope.
HELOCs and home loans
Many owners use HELOCs or home‑improvement loans for smaller projects. Interest may be deductible if the funds are used to buy, build, or substantially improve the home that secures the loan, subject to federal limits. Document how you use the funds and talk with a tax professional. Here is a helpful summary of deductibility rules from Investopedia.
Tax benefits and paperwork
Protect your property taxes
California law generally excludes qualifying seismic retrofit work from property tax reassessment, so the value added by the retrofit is not treated as new construction. To claim the exclusion, notify the San Francisco Assessor prior to or within 30 days of completion, then file supporting documentation within required timelines. Review the statute in California Revenue and Taxation Code Section 74.5 (full text).
Track your cost basis
Seismic work is a capital improvement. That means it increases your property’s tax basis, which can reduce potential capital gains when you sell. Keep permits, contracts, and receipts so you can document costs later. See a simple overview of basis and home improvement recordkeeping at Investopedia.
Typical retrofit costs
- Brace‑and‑bolt for older single‑family homes: about $3,000 to $7,000.
- Single‑family soft‑story (living space over garage): often $15,000 to $30,000, sometimes more with foundation work.
- Multi‑unit soft‑story: tens of thousands to several hundred thousand dollars depending on size and design.
CRMP provides context for small single‑family projects, while larger multifamily scopes vary widely and require an engineer’s estimate.
If you own or buy here
Check address and building type
Cow Hollow includes addresses in 94123 and parts of 94109 and 94115. Use CRMP’s eligibility tools to confirm whether your specific address and home type qualify, and wait for program acceptance before starting work. Start with the CRMP ESS page and the FAQs to navigate grants and approved contractors.
If you are a landlord
San Francisco allows pass‑through of certain required seismic retrofit costs to tenants, subject to Rent Board procedures, amortization rules, and hardship protections. Some PACE costs have also been structured for pass‑throughs under local rules. Review the city’s financing and compliance resources on the ESIP page and consult the Rent Board before planning any pass‑throughs.
Multifamily funding shifts
A recent change to federal FEMA BRIC funding reduced previously expected support for large multifamily retrofit grants in California. If you own a multi‑unit property, expect to lean more on PACE, CalCAP‑enrolled loans, and private lenders, and verify current CRMP offerings. See the recent reporting on funding changes for context.
Your step‑by‑step game plan
- Identify your property type and status. Confirm whether you have a single‑family home, a living‑space‑over‑garage layout, a condo or HOA, or a rent‑controlled multifamily building.
- Check grant eligibility and timing. Use CRMP’s tools and watch application windows. Do not start work before acceptance.
- Get an engineer’s scope and at least two estimates. Build a realistic budget before you pick financing.
- Choose the right financing fit. For small jobs, combine an EBB grant with savings or a HELOC. For larger projects, consider PACE, a CalCAP‑enrolled loan, or a renovation mortgage like FHA 203(k).
- Protect your tax benefits. File the seismic retrofit reassessment exclusion with the Assessor and keep all permits, invoices, and certifications.
- If renting, plan tenant communications. Review Rent Board procedures, amortization timelines, and hardship protections before assuming any pass‑throughs.
How this helps resale
Buyers and lenders pay close attention to seismic risk in San Francisco. Completing a permitted retrofit and keeping thorough documentation can improve buyer confidence, streamline underwriting, and reduce surprises during escrow. That preparation supports smoother negotiations when you decide to sell.
Ready to map out the smartest path for your Cow Hollow property? For tailored guidance and a funding plan that fits your goals, connect with Stephanie Johnson.
FAQs
What funding options exist for Cow Hollow homeowners who need seismic retrofits?
- You can combine state grants from CRMP (EBB or ESS) with financing like PACE, CalCAP‑enrolled loans, renovation mortgages such as FHA 203(k), or HELOCs, depending on scope and eligibility.
Will a seismic retrofit raise my San Francisco property taxes?
- Qualifying seismic work is generally excluded from reassessment under California Revenue and Taxation Code Section 74.5 when you file the required claim with the Assessor.
Can I start retrofit work before I get a CRMP grant approval?
- No. Starting work before approval typically disqualifies you from CRMP grants, so wait for acceptance before pulling the trigger.
How can buyers finance retrofits when purchasing a home in Cow Hollow?
- Buyers often use renovation mortgages that roll costs into the loan, such as FHA 203(k) for qualifying primary residences, or conventional equivalents like HomeStyle.
Can landlords pass seismic retrofit costs through to tenants in San Francisco?
- For required work, landlords can petition for pass‑throughs under Rent Board rules with amortization schedules and tenant hardship protections; procedures and limits apply.
What are typical costs for brace‑and‑bolt and soft‑story retrofits in San Francisco?
- Brace‑and‑bolt often runs $3,000 to $7,000. Single‑family soft‑story work is commonly $15,000 to $30,000, while multi‑unit projects can run much higher depending on size and design.