If and when the next big earthquake strikes the Bay Area, thousands of older, soft story homes in San Jose face the risk of catastrophic damage.

The city passed legislation nearly 18 months ago requiring property owners to retrofit their multi-story, wooden-frame buildings with at least three units constructed before 1990. It delayed implementation, however, when the federal government rolled back significant funding to facilitate the repairs.

But after a court-granted injunction required the release of some of those federal funds, the city approved a $1.6 million pilot financing program in hopes of rolling out a larger “critical life-safety initiative” in the future.

“We’re pulling a million dollars from housing resources to invest in this unit preservation and then, utilizing that test run, to set us up for execution of a larger FEMA grant or other resources that may come in,” Housing Director Erik Solivan said Tuesday.