What the latest revision aims to avoid – A collapsed building blocks the road after the 1995 Hanshin Earthquake in Kobe.

The revision to the law to promote earthquake-resistant repairs to buildings went into effect on November 25. This revision obligates the owners of large-scale buildings such as hotels and other institutions to undertake earthquake-resistant building inspections, of which the results will be made public. It also applies to buildings alongside designated major roads. In the event of a major earthquake, there is a risk that older, unsafe buildings could topple onto roads and block access for emergency service vehicles.

So what does this mean for apartments in ageing buildings?

Apartments built to the old earthquake-resistant codes alongside these designated roads are also obligated to carry out earthquake-resistant building inspections prior to the deadline of March 2015. However, convincing apartment owners to agree to carry out a building inspection may be a difficult task for several reasons.

For instance, if the inspection shows that the building is not earthquake-resistant and is at a high risk of collapse in a major earthquake, it will be almost impossible for owners to sell their apartments without either taking a huge loss or undertaking costly repairs. For some owners, this is news they would rather not hear so they are less inclined to vote in favour of a building inspection for fear of what the result could be.

Another hurdle is the cost of conducting an inspection. For buildings with insufficient funds set aside for future repairs and with older residents on fixed incomes, any extra expense is unfavoured. A recent survey by Tokyo City found that 25% of buildings spent between 1 ~ 3 million Yen for a building inspection, while 22.6% reported spending between 5 ~ 10 million Yen. Of the old apartment buildings surveyed, only 17.1% had even carried out an inspection.

A building inspection will give the building a seismic index. The higher the number, the higher the building’s earthquake resistance. A figure of 0.6 or higher means the building has a low chance of destruction or collapse in an earthquake that produces a seismic intensity level (shindo) of 6 ~ 7. Buildings with a figure lower than 0.6 require earthquake retrofitting. Shibuya’s town hall building (c1964) was found to have an index of just 0.23 (anything under 0.3 is considered to be at high risk of collapse or destruction in a shindo 6 ~ 7 earthquake) and redevelopment plans are underway.

The government and many local authorities provide assistance for building inspections. But even with funding for the inspection, many apartment owners cannot afford the financial burden of carrying out the necessary earthquake retrofitting. As a result, they may be left with apartments in ‘illegal’ buildings that no one wants to buy.

Under the condominium ownership law (kubun shoyu-ho), any large scale repairs to an apartment building’s common areas require 3/4’s of owners to agree. However, for designated buildings, this will be reduced to a majority vote to help speed along the process of earthquake retrofitting.

The buildings that fall under these new obligations are those built before May 1981 to the old earthquake codes, and to a height that is equivalent at least half the width of the road. In Tokyo, approximately 700 condominiums will be affected. Half of those have already carried out inspections or are in the process of doing so.

Sources:
Business Journal, November 28, 2013.
Suumo Journal, November 27, 2013.
Suumo Journal, March 20, 2013.

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