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You choose a Risk Category from I to IV from ASCE-7 Table 1.5-1. The lengthy descriptions in this Table have been summarized in the input choices as Low hazard, All others, Hazardous, and Essential, however structures posing a "substantial" hazard to the community in the event of failure are included in Category IV along with essential facilities.
The Risk Category is used to determine the Importance Factor from Table 1.5-2 and the Seismic Design Category from Tables 11.6-1 and 11.6-2.