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Your house should be securely fastened to the foundation with expansion bolts. If your home was built before 1950, it probably does not have bolts securing the wood structure to the concrete foundation. There should be a bolt at each end of a section of mudsill and one every 4 feet in between.
Modifications to the foundation of your house must be done by a licensed contractor, who will ensure that the work is done correctly and according to all applicable codes. This is important for your safety.
Foundation Bolts
Hire a contractor or inspector to inspect your foundation for soundness.
Check to see that the mudsill is not rotted.
Install foundation bolts if your house is not bolted securely to the foundation.
Brace Cripple Walls
Check with your local building officials to see whether you need a permit to do this work.
Make sure that the sill plate below the cripple wall is bolted or otherwise anchored to the top of the foundation.
Add blocking between vertical studs.
Apply plywood or OSB to the interior face of the cripple wall.
Add nails through the existing blocking between floor joists to ensure that the floor is securely attached to the cripple wall.
If cost is a factor, install shear wall panels at the corners of your house first (8 feet from each corner in a one story house, 16 feet in each direction in a two story house). Fill in as your budget allows to secure the entire perimeter of your house.
Bracing a 2-foot high cripple wall will cost you about $1.50 per linear foot of wall. For example, a house measuring 60 feet by 30 feet will have a perimeter of 180 feet. So the cost for that house would be about $270. This figure covers only the materials you will have to buy and excludes the cost of any tools you use, building permit fees, and the value of your time. This figure also excludes the cost of having a contractor anchor your sill plates. Also, bracing higher cripple walls may require more lumber and therefore may be more expensive.
Adapted from FEMA: Mitigation for Homowners Independent Study Course Unit 4