Multistory buildings do not rely on exterior stucco walls as the primary lateral-force-resisting system.
The deficiency is in the strength of the stucco walls. Inspect stucco-clad buildings to determine if there is a lateral system such as plywood or diagonal sheathing at all but the top floor. Where exterior plaster is present, verify that the wire reinforcing is attached directly to the wall framing and the wire is completely embedded into the plaster material. Conforming buildings which fail this check shall be placed into SPC 4.