Frequently Asked Questions
Geologic Hazard Abatement Districts, or GHADs, were created in California in 1979 by the
Beverly Act to enable local residents to collectively mitigate geological hazards which pose a
threat to their properties. Statutes pertaining to GHADs are presented in California Public
Resources Code Division 17. GHADs are designed to handle long-term abatement and
maintenance of real property potentially threatened by geologic hazards.
I. INTRODUCTION
We prepared this document to address issues concerning the general financing of Geologic
Hazard Abatement Districts (“GHADs”) with an emphasis on funding of Conservation Easement
(CE) activities. First, we provide a brief overview of the GHAD law with emphasis on financial
aspects and the GHAD’s role as a property-tax-secured financing mechanism. Second, this
paper compares the funding of a CE through an endowment or as part of the GHAD
assessment.
II. GEOLOGIC HAZARD ABATEMENT DISTRICT STRUCTURE
Geologic Hazard Abatement Districts (GHADs) were created in California in 1979 by the
Beverly Act to enable property owners to mitigate geological hazards which pose a threat to
their properties. Statutes pertaining to GHADs are presented in California Public Resources
Code Division 17. GHADs are designed to handle long-term abatement and maintenance of real
property potentially threatened by geologic hazards.
A GHAD provides a superior alternative for the maintenance of flood control structures. GHADs
have many advantages in dealing with geologic hazards. A GHAD focuses on the prevention of
damage resulting from earth movement (including flooding and its effects) by identifying and
monitoring potential hazards and undertaking appropriate improvements. GHADs have the
ability to respond to both routine and unforeseen events quickly and efficiently with technical
and financial resources.
In addition to ongoing maintenance activities, GHADs provide an attractive means for future
renovations or improvements to flood control structures, including future alterations that may be
necessary due to sea-level rise. Predictions of both the rate and magnitude by which sealevel rise will occur in the future vary widely; however, there appears to be a consensus
within the scientific community that some degree of sea-level rise will affect properties adjacent
to San Francisco Bay. While today’s predictions used for the planning and design of bayside
improvements may either underestimate or overestimate actual future sea-level rise, GHADs
efficiently mitigate the consequences of this guesswork. By accumulating a reserve for future
maintenance and rehabilitation, a GHAD can provide the financial resources necessary for
potential future expansion of flood control structures. Further, because of the relative safety of
GHAD revenues (GHADs are typically financed through the collection of supplemental tax
assessments), GHADs can borrow from lenders or issue bonds with very attractive credit terms.
In residential areas where homes are constructed on or above slopes, human activities can contribute to
causing landslides and increasing landslide risk. The good news is that many human‐caused landslides can
be avoided or mitigated. In developments with Geologic Hazard Abatement Districts (GHAD), which bears
a responsibility to mitigate landslides, residents can help prevent landslides and alert the GHAD to areas
of potential slope failure. By understanding the signs of potential geologic hazards, homeowners can be
empowered to raise concerns before the situation becomes serious.