The use of geologic hazard abatement districts to mitigate landslides

Several years of dry weather followed by intense powerful winter storms has resulted in severe land movements and flooding wreaking havoc on our communities. These events caused President Joseph R. Biden, Jr and California Gov. Gavin Newsom to Declare Major Disaster Declarations to assist in emergency cleanup efforts and repairs to damaged public infrastructure. These damages will likely take "several hundred million" dollars to cover the costs of necessary repairs for California communities, according to FEMA Administrator Deanne Criswell.

Most of the damages caused by earth movement are not covered by insurance, and the government funding available is limited in amount and purpose. So, what can we do on a more local basis to protect California communities from these geologic hazards?

In 1979, the State Legislature passed a law (Public Resources Code [PRC] section 26500 et seq.) authorizing the formation of geologic hazard abatement districts (GHADs). The law was enacted to address the aftermath of the Portuguese Bend landslides in the Palos Verdes area of Southern California.

1. What are GHADs?

GHADs are governmental districts formed to address geologic hazards. GHADs may be formed for the purpose of prevention, mitigation, abatement or control of a geologic hazard. (PRC § 26525.) A "geologic hazard" is broadly defined as an actual or threatened landslide, land subsidence, soil erosion, earthquake, fault movement or any other natural or unnatural movement of land or earth. (PRC §§ 26507.) To date, there are 43 GHADs (or similar districts) that have been formed in the State.

2. GHAD powers

A GHAD is a political subdivision of the State. It is not an agency or instrumentality of a local agency. (PRC §§ 26525, 26570.)

A GHAD can be governed by an elected board of landowners within the district or members of the city council or board of supervisors. (PRC§§ 26567, 26583.) GHADs are authorized to acquire, construct, operate, manage improvements on public or private lands; and may exercise the power of eminent domain; and issue/service bonds, notes, or debentures to finance the costs of improvements. (PRC §§ 26505, 26576.)

3. GHAD financing

GHADs have numerous funding powers that allow them to finance improvements. A GHAD's primary source of funding is through real property assessments. (PRC§ 26650.) These assessments, which attach as liens on property, may be collected at the same time in the same manner as general taxes on real property. (PRC § 26654.) All assessment proceedings must also comply with Proposition 218 adopted by the voters in 1996, the "Right to Vote on Taxes Act." (Arts. XIIIC and XIID of the California Constitution.)

A GHAD is also authorized to finance improvements through the California Improvement Act of 1911, the Municipal Improvement Act of 1913, and the Improvement Bond Act of 1915. (PRC § 26587.) In addition, a GHAD may accept financial or other assistance from public or private sources (PRC § 26591) and may borrow funds from private sources or local, state and federal government. (PRC § 26593.)

4. General formation process for GHADS

The GHAD Law sets forth a specific formation process which is exclusive. (PRC § 26560.) GHAD formation is exempt from approval by the Local Agency Formation Commission (LAFCO) (see Las Tunas Beach Geologic Hazard Abatement District v. Superior Court (City of Malibu), 38 Cal. App. 4th 1002 (1995)). Also, GHAD formation and all activities in furtherance of or in connection therewith are exempt from CEQA. (PRC § 26559, 26601; County of Ventura v. City of Moorpark and Broad Beach Geologic Hazard Abatement District (24 CA 5th 377 (2018).)

5. Benefits in forming GHAD

GHADs offer many benefits:

• Prompt response to a geologic hazard if one occurs due to its funding capability and technical expertise through the plan of control.

• CEQA exemption for formation and improvement work.

• Easily collected assessments, as they are collected along with the general property tax. This avoids requiring separate collection by a private entity, such as a homeowners' association.

• Benefits from a degree of immunity for their actions which encourages the formation of GHADs. (Government Code § 865.)

• Has expansive powers to deal with geologic hazards unlike other agencies that can be formed to monitor similar situations (such as a homeowners association).

• Can monitor geologic hazards which include not only typical landslides and natural or unnatural earth movement, but levee construction and maintenance, and monitoring of sea level rise and drainage and stormwater improvements.