Recovery Efforts Following California’s Wildfires
It’s been six months since California’s most destructive wildfires, and while recovery is progressing, the pace can seem dishearteningly slow for many. Lands are changing ownership, developers are stepping in, permits are getting approved, and construction is beginning. Yet, for numerous homeowners, the road back to normalcy remains rocky.
“This process takes time, money, and a lot of patience,” shared Laura Alfano, a real estate agent focused on Malibu and Pacific Palisades properties. “It combines a mix of developers, investors, and families with significant wealth. We’re seeing interest not just in smoke-damaged homes but also the land itself.”
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Since the fires, about 123 lots have been sold in Palisades, with roughly half going to companies and the rest to private individuals. In northeastern Altadena, the situation differs, as many homes there have been overlooked by investors. One firm alone purchased 16 properties, while another bought 13.
“I don’t want an accessory dwelling unit; I’d rather not live,” expresses 70-year-old Terry Kilgore, who resides in an RV on his Altadena lot, waiting on an insurance settlement. “RVs aren’t my thing. I don’t want to be in one, but at this point, I’m grateful for it.”
Many homeowners are now realizing they lack adequate insurance. They struggle to cover both the old mortgage on the destroyed property and two years of rent in a challenging market, all while trying to gather enough funds for rebuilding.
In contrast to Altadena, which sees more vacant lots appearing each month, Palisades is experiencing a reduction in available properties as victims begin to consider cashing out. The average price for vacant lots in that area stands at around $2.2 million.
“I’ve heard that construction timelines can stretch to a year or more, so I think we’ll probably start framing within the next six months,” noted Larry Vein, head of Pali Strong, a civic organization formed after the fire.
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“The trauma has been hard. A lot of folks are still pretty confused about everything. They’re unsure what their next steps should be. Some are pushing ahead with plans, while others are still holding back,” commented contractor Michael Shirley.
Currently, about 50 homes are being constructed in Palisades, with more anticipated. Of nearly 900 permit applications submitted to the city and county in Los Angeles, 274 have received approval to proceed. Approximately 13,000 homes were lost in this disaster, and the authorities claim they’ve managed to grant permissions in under two months.
For more complex sites and larger homes, however, experts suggest that homeowners have been waiting over a year to get approvals. To help expedite rebuilding, Governor Newsom has relaxed enforcement of certain orders until at least October 1st. Homeowners now have the option to start construction with up to a 10% increase in size. However, those wishing to exceed that limit face significant fees and lengthy wait times.
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Ross Greenberg, who lost his home in the Palisade fire, mentioned that although his rebuilding permission was granted in early June, he has yet to see any progress from Los Angeles County. “I’ve already paid more than $12,000 just to get my process started,” he remarked.
In addition to navigating regulations, many residents find themselves battling with insurance companies. In the aftermath, State Farm revoked 1,600 policyholders in Palisades last July, leaving many homeowners feeling unsupported. Lawsuits are now being filed against insurers, as residents claim they still lack the necessary coverage.
California’s fair plans provide minimal assistance, which often doesn’t even recover costs for foundational work in places like Malibu. Fires have resulted in losses of around 600 homes, with 300 directly on the beach.
“We’re hopeful about moving forward,” said Don Schmitz, the president of a real estate consulting firm. “And that’s before you even put up the first beams of your new home.”
