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If Proposition 8 adjustments are made by the County Assessor in future years because of declines in the fair market value of properties caused by the lack of real estate development in the area generally, Tax Revenues may be adversely affected and as a possible consequence may have an adverse effect on the Successor Agency's ability to pay debt service on the Bonds. Assessment Appeals. Assessment appeals may be filed by property owners seeking a reduction in the assessed value of their property. After the property owner files an appeal, the County's Appeals Board will hear the appeal and make a determination as to whether or not there should be a reduction in assessed value for a particular property and the amount of the reduction, if any. To the extent that any reductions are made to the assessed valuation of such properties with appeals currently pending, or appeals subsequently filed, Tax Revenues will be reduced. Such reductions may have an adverse effect on the Successor Agency's ability to pay debt service on the Bonds. As of August 31, 2018, there were 206 pending appeals filed within the last six years by property owners within the Project Area relating to $834,780,062 of current year or prior years' assessed value (see "THE PROJECT AREA - Assessment Appeals"). To the extent these appeals are resolved in favor of the property owner, Tax Revenues will be reduced. Earthquake, Flood and Other Risks. Any natural disaster or other physical calamity, including earthquake, may have the effect of reducing Tax Revenues through reduction in the aggregate assessed valuation within the boundaries of the Project Area. Seismic Activity. The City is located in close proximity to two major, known and active fault zones: the Newport -Inglewood fault zone located to the southwest and Whittier -Elsinore fault zone located to the northeast. The San Andreas and Raymond Faults are also proximate to the City. The Newport -Inglewood fault zone passes within approximately 5 miles of the southerly limits of the City. The Newport -Inglewood fault zone is considered capable of generating an earthquake with a magnitude of 7.4 on the Richter Scale. The Whittier -Elsinore fault zone is the closest major fault system to the City and one of the largest in Southern California. The Whittier -Elsinore fault zone does not extend inside the City boundaries, but approaches within less than one mile of the northeastern comer of the City. The Whittier -Elsinore fault is currently active and is capable of generating an earthquake of up to a magnitude of 7.5 on the Richter Scale, which could result in surface rupture along one or more of its fault traces. Older, unreinforced masonry buildings are the most vulnerable building types in any region prone to earthquakes. The City of Santa Ana has an inventory of 211 such masonry buildings; however, California has instituted more stringent building codes and related seismic strengthening standards and, since the 1980s, the City has enacted and enforced stringent local ordinances to cause all but one of these buildings to undergo seismic strengthening and retrofitting to comply with the California Existing Building Code. If an earthquake were to substantially damage or destroy taxable property within the Project Area, the assessed valuation of such property would be reduced. Such a reduction of assessed valuations would result in a reduction of the Tax Revenues that secure the Bonds. Approximately 10% of the City is located in Flood Zone A, which is due east of the Garden Grove Wintersburg Channel located on the northwest side of the City. Approximately 20% of the North Harbor Boulevard Redevelopment Project (but no other portion of the Redevelopment Project) is located within Flood Zone A. According to the Federal Emergency Management Agency ("FEMA"), Flood Zone A is subject to inundation by the 1% annual -chance flood event. Because detailed hydraulic analyses have not been performed, no Base Flood Elevation or flood depths are shown on the Flood Insurance Rate Map. For properties in a flood zone, flood insurance is mandatory and floodplain management standards will apply. 43 SA -3-57