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City approves fee-waiver ordinance for Palisades fire rebuilds; CAO to report updated cost estimate in 30 days
Summary
The ad hoc committee approved an ordinance to waive permit- and plan-check–related fees for rebuilding after the January wildfires, instructing the City Administrative Officer to return with a revised fiscal analysis within 30 days and Department of Building and Safety to report biannually on waivers granted.
Los Angeles’ ad hoc committee on recovery voted to adopt a city attorney-drafted ordinance to waive fees tied to permits and plan checks for properties damaged in the Jan. 7 wildfires, and instructed city staff to return with additional financial details.
The committee approved the ordinance as amended and asked the City Administrative Officer (CAO) to provide a 30-day update that models the fiscal impact if the waiver applies to all rebuilds (not only expedited like-for-like projects) and that accounts for potential insurance and other funding sources. The committee also directed the Department of Building and Safety (DBS) to report every six months on the number of households that receive fee waivers.
The ordinance, prepared by the City Attorney’s Office in response to Mayor’s emergency directive No. 7 and council motions, would add section 98.04190.1 to the Los Angeles Municipal Code to suspend a range of fees for rebuilding after the January fires. The CAO told the committee an initial estimate from DBS showed about $86,000,000 in plan-check and permit fees could be waived if waivers were limited to expedited, like-for-like projects; the CAO and City Attorney warned that an ordinance without that limit would likely expand the fiscal impact beyond that estimate.
City Attorney Kenneth Fong said the draft ordinance was intentionally broad and could be narrowed by the council. CAO Andy Gallon and DBS staff clarified how the sunset and permit timing would work: to qualify, applicants must have a complete permit application ready for issuance (DBS staff said the critical milestone is issuance-ready, not merely submission), and the ordinance contains a sunset tied to Jan. 7, 2027. DBS staff said permit review times vary; a complete application can take weeks to months depending on required clearances from other departments.
Councilmember Tracy Park, who moved adoption, said the city should not charge households to rebuild after losses “that were completely beyond their control.” Councilmember Marisa Sota Martinez seconded portions of the motion and asked staff to assess insurance recoveries and other mitigation for the city’s borrowing costs.
The committee asked the CAO to include in the 30-day report: updated cost estimates assuming waivers apply to all rebuilds, a breakdown of fee types included and excluded from the initial $86 million estimate, the likely duration the city could carry any resulting enterprise-fund loan, potential funding sources to repay the loan, and an analysis of whether tax-increment mechanisms (such as a climate resilience district) could ultimately help repay costs. The CAO and City Attorney also were asked to report on legal tools for subrogation against insurers.
The committee approved the ordinance with instructions and referred subsequent budgetary review to the Budget and Finance Committee.
Ending: The committee vote adopted the ordinance as amended and set clear follow-up deadlines: CAO return in 30 days with a revised fiscal assessment; DBS to provide six‑month reports on waived fees and counts of affected households. The ordinance includes a sunset provision (Jan. 7, 2027) and requires applicants to have an issued or issuance-ready permit by that date to qualify for the waiver.
