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Committee approves fee‑waiver package to aid Pacific Palisades wildfire recovery

Los Angeles City Budget and Finance Committee · January 21, 2026
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Summary

The committee approved CAO-recommended waivers of plan-check and rebuilding permit fees for properties damaged in the Jan. 2025 wildfires, recommending a three‑year program covering all structures up to 110% of original footprint with an aggregate general‑fund cap and a year‑by‑year reimbursement plan.

The Budget & Finance Committee on Jan. 20 recommended that the City Attorney draft an ordinance to waive plan‑check and permit fees for properties damaged in the January 2025 wildfires, approving the CAO’s recommended option to include single‑family homes, accessory dwelling units, condominiums, multifamily dwellings and commercial properties.

CAO Matt Szabo presented revised fiscal estimates and said the report recommends fee waivers for all structures for three years with an aggregate cap of $90,000,000 and permit coverage up to 110% of the original footprint. Szabo said the "report recommends waiving fees for all structures ... with an aggregate cap of $90,000,000" and that the CAO estimated maximum exposure at about $98,000,000 but expects actual costs to be lower as properties are sold or become ineligible.

Public testimony from Palisades residents and community groups was strongly in favor of option 3. Councilwoman Tracy Park, who has advocated for a broader waiver, urged the committee to back the option so "we can at least give the certainty and relief to Angelenos who so desperately need it." Survivors and local advocates said including condos and multifamily housing is necessary to prevent displacement and to preserve the city’s remaining affordable housing stock.

Committee members asked CAO and department staff about the assumptions behind the estimates — including reduced ADU assumptions and properties already sold — and requested that the CAO report back via the Financial Status Report with updates on program usage and how much of the annual $30,000,000 estimated payout has been allocated in each fiscal year. The committee voted 4–0 to approve the recommendation as amended and asked the City Attorney to draft the ordinance retroactive to the date of the fire, with eligibility not to exceed three years from the full council’s action.

Next steps: City Attorney will draft an ordinance consistent with the CAO recommendations; CAO and departments will return with a payment plan that limits general‑fund obligation to no more than $30,000,000 per year and periodic updates via the FSR.