Real estate

LA mayor issues order to expedite housing construction amid wildfires

“This unprecedented natural disaster warrants an unprecedented response that will accelerate the rebuilding of homes, businesses and communities,” Bass said in a statement. “This order clears red tape and bureaucracy and organizes itself around urgency, common sense and compassion. We will do everything we can to get Angelenos back home.”

Bass’ announcement comes a day after California Governor Gavin Newsom issued an executive order with many of the same goals in mind. His goal also is to have permits approved within 30 days, and the order directs agencies to refrain from regulating state environmental laws.

That will help residents of the coastal neighborhood of Pacific Palisades, which, along with Altadena, has been hardest hit by the fires.

The two orders come with restrictions. Eligible renovations may not exceed 110% of the previous size of the destroyed home. They both emphasize the need to rebuild in a way that increases resilience to future wildfires, with Newsom’s order stating that rebuilding “must include measures to increase community resiliency, harden homes, and provide defensible space to build resilience against future wildfires, to the greatest extent.” feasible.”

However, there are no specific mandates in Newsom’s order regarding resilience in rebuilding burned homes.

The mayor’s and governor’s executive orders are certainly the first of many actions taken by state and local governments, especially as the fires continue to rage.

As of Tuesday evening, the Palisades Fire that destroyed Pacific Palisades has burned nearly 24,000 acres and is only 17% contained, according to the Los Angeles Times. The Eaton Fire that ripped through Altadena has burned just over 14,000 acres and is 35% contained.

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Both fires continue to threaten residential areas, and dangerous Santa Ana winds remain in the forecast.

While the two executive orders were largely met with approval, significant uncertainty remains about the situation. If things develop as they have in other areas hit by natural disasters, there could be a whiplash effect on the housing market, with activity stagnating followed by a wave of pent-up demand.

The question is also whether residents who have lost their homes want to return. Because many insurance companies have withdrawn from issuing policies in the area, some residents may not be able to obtain home insurance. Rep. Maxine Waters (D) has called for an investigation into the impact of wildfires on the insurance market.

Other residents may decide to take advantage of the mortgage interest deduction while looking for temporary housing.

Find all our coverage of the LA fires here.

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