Committee backs three‑year permit‑fee waiver, with general‑fund cap, to aid fire survivors

A City committee on Tuesday approved a plan to waive permit and plan‑review fees for property owners rebuilding after the January 2025 fires, endorsing the CEO’s Option 3 and directing the City Attorney to prepare an ordinance.

The proposal approved by the committee would temporarily suspend fees for single‑family homes, duplexes, multi‑family units, townhomes and commercial properties for up to three years and set a general‑fund cap. City Administrative Officer Max Debo told the committee his office recommended a three‑year waiver “with a cap of $90,000,000 from the general fund,” and staff said conservative assumptions show maximum exposure could approach $98,000,000 though the true cost is likely to be lower as properties return to market.

Why it matters: Residents who lost homes in the fires and advocates told the committee the fee waivers are needed for recovery. Multiple commenters said fees could prevent elderly, credit‑constrained and low‑income owners from rebuilding and urged the council to include condominiums and multi‑unit buildings in any relief.

Public comment and reaction: Dozens of residents and community representatives addressed the committee during a one‑hour public comment period. Lucy Alante told the committee, in Spanish, “por favor, voten que sí en la opción 3,” arguing the plan would allow elderly neighbors and small businesses to return. Mark Smith, a condominium owner who said he lost his unit, said Option 3 uses “more realistic assumptions” for multi‑family properties and urged support. Peggy Holter, a long‑time Palisades resident, described insurance problems and asked the committee to ensure relief reaches older homeowners.

Staff details: The CAO’s estimate rests on several assumptions about how many properties will seek permits and how many will be rebuilt; the CAO’s presentation reduced initial high‑end assumptions (from nearly 10,000 properties) to more conservative counts and modeled different recovery rates. Staff also noted that fee revenue ordinarily pays for inspections and plan review, so waiving fees requires the general fund to backfill those department costs unless outside reimbursement is secured.

Next steps: The committee’s motion (as read into the record) accepted the CAO reports and approved Option 3 as recommended, and it instructed the City Attorney to draft a follow‑up ordinance with eligibility rules, retroactivity to the fires’ date and the cap. The committee recorded the motion as passed and will forward the ordinance and related materials to the full council for final action.