LA City Council OKs Permit Fee Waivers for Palisades Fire Rebuilding

The Council voted unanimously to waive rebuilding permit fees for properties damaged or destroyed in the Palisades fire, offering long-sought relief to residents.

Feb. 3, 2026 at 9:39pm

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The Los Angeles City Council has unanimously approved a plan to waive building permit and plan-check fees for homes and businesses damaged or destroyed in the Palisades fire. The approved program will waive permit and plan-check fees for all types of fire-damaged structures, including single-family homes, duplexes, condos, accessory dwelling units (ADUs), apartments and commercial buildings, but limits relief to rebuild up to 110% of a property's original footprint. The program will be available for three years and capped at $90 million citywide, with the General Fund reimbursing city departments for lost fee revenue.

Why it matters

The decision brings long-awaited clarity and financial relief to Palisades residents who have faced insurance shortfalls, rising construction costs and uncertainty over how much they would ultimately owe the city to rebuild after the devastating fire. The program is seen as crucial to helping the community recover economically, as a local grocery store won't reopen until enough residents return.

The details

The approved program waives permit and plan-check fees for all types of fire-damaged structures, including single-family homes, duplexes, condos, accessory dwelling units (ADUs), apartments and commercial buildings, but limits relief to rebuild up to 110% of a property's original footprint. Property owners who rebuild larger than their original homes will only pay permit fees on the additional square footage beyond the 110% threshold. The program will be available for three years and capped at $90 million citywide, with the General Fund reimbursing city departments for lost fee revenue.

  • The Los Angeles City Council voted on the proposal on Tuesday, February 3, 2026.
  • The program will be available for three years.

The players

Los Angeles City Council

The governing body of the city of Los Angeles that voted unanimously to approve the permit fee waiver program.

Katy Yaroslavsky

Councilmember who chaired the Budget and Finance Committee, which initially favored a more limited fee waiver program.

Traci Park

Councilmember who represents the Palisades area and chaired the Ad Hoc Committee for LA Recovery, which pushed for broader relief covering all structures.

Monica Rodriguez

Councilmember who added an amendment requiring property owners to reimburse the city if they sell before receiving a certificate of occupancy.

Bart Young

A longtime Palisades resident who lost his home of 29 years in the fire and spoke at the City Council meeting about the financial challenges of rebuilding.

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What they’re saying

“Like many fire survivors, I'm now trying to rebuild, but I'm facing financial reality that feels impossible.”

— Bart Young, Palisades resident

“I'm not asking for special treatment, I'm asking for something fair.”

— Bart Young, Palisades resident

“Unless, and until, we get people back in the community, we will not have the businesses.”

— Harris Smith, CPA and Palisades resident

What’s next

The City Administrative Officer has been instructed to identify funding sources to repay the $10 million borrowed from the Building and Safety Building Permit Enterprise Fund, propose a strategy that limits General Fund costs to no more than $30 million per year over the next three years, and regularly report back to the Budget and Finance Committee on how the program is being used and which types of properties are receiving permits.

The takeaway

This program provides crucial financial relief to Palisades residents who have faced immense challenges in rebuilding their homes and businesses after the devastating fire. By waiving permit fees, the city is removing a major barrier to recovery and helping the community get back on its feet economically.