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Top agents in Los Angeles sent a letter to California government officials urging them to strategically adjust real estate laws, regulations, and building codes to allow communities to recover after decimating the city last week. to respond to wildfires. From disaster.
The letter was written by Jason Oppenheim, president and founder of the Oppenheim Group, and leader of the agency Ben Bellack Group, and was written by California Governor Gavin Newsom, Los Angeles Mayor Karen – Sent to bus and related regulatory authorities and signed by 45 top agents. The area includes Aaron Carman, Joyce Ray, Josh and Matt Altman, Jade Mills, Mauricio Umansky, Raini Williams, Kurt Rapaport, Sally Foster Jones, and more.
The letter outlines five specific areas of coordination to help communities cope with disasters. These include California Fair Plan insurance coverage, ULA taxes, building policies and codes, limits established by the Coastal Commission and the City of Los Angeles, and property taxes. The deal was first reported.
“On behalf of the entire real estate community, we extend our deepest sympathies to those affected by the fires in and around Los Angeles,” the letter reads. “We deeply understand and understand the new context of this crisis, as we have assumed the responsibility of helping the entire community find alternative housing to those we have secured. From the front lines, we have a unique perspective on the challenges that lie ahead as we navigate the aftermath of this disaster.”
“In the spirit of rebuilding, we are calling for substantive adjustments to laws, regulations and building codes for the areas hardest hit by this disaster.”
Real estate industry leaders are proposing ways for state and local governments to adjust their policies to help communities that are currently struggling.
California FAIR Plan Coverage
The California FAIR Plan provides up to $3 million in basic fire coverage to state residents if they are unable to obtain coverage through a traditional insurance company. LA’s representatives argued in the letter that this protection should be increased to $6 million and include liability insurance so more homeowners can receive coverage. They also called on the government to work with insurance companies to re-enter the state’s insurance market, even if homeowners have to pay higher premiums.
In recent years, many insurance companies have left California or drastically increased premiums, leaving many homeowners in a difficult position. Last March, State Farm General, California’s largest home insurer, announced that 30,000 homeowners and condominium policies would not be renewed when they expire, including more than 1,600 policies in the Pacific Palisades. Announced. Allstate stopped writing new policies in 2022, and Chubb and its subsidiaries also stopped writing new policies in 2021 for high-value, high-wildfire-risk homes. Tokio Marine America Insurance Company and its subsidiary, Trans Pacific Insurance Company, left the state in 2024.
ULA tax
Many agents and brokers in LA are aware of the county’s ULA, which takes effect in April 2023 and imposes a 4% tax on properties valued at $5 million or more, and a 5.5% tax on properties valued at $10 million or more. They are vocal about their dissatisfaction with taxes. In these cases, the home seller is responsible.
The letter asks authorities to allow property owners who lost their homes in the wildfires to sell their land tax-free, and to give developers and other land buyers a five-year window to resell their land. They are requesting that they be granted tax exemption. After purchase. Such an exemption would encourage developers to buy land and rebuild more quickly, LA’s representatives argued.
Building policies and norms
Many of the homes lost to wildfires predate current codes, ordinances, and proposed restrictive building policies, including those passed by the City Council’s Planning and Land Use Committee. , including a proposed wildlife ordinance being considered by the City Attorney’s Office. The ordinance would limit the area of real estate, slope, landscaping, types of fences and walls, etc.
In their letter, L.A. representatives said local building safety departments would allow local building safety departments to be exempted from such policies so that homeowners could rebuild exactly the same homes that previously existed on the property. requested government authorities to do so. Agents argue that the exemption will help prevent further financial hardship on rebuilding families.
Coastal Commission and City of Los Angeles Restrictions
Oppenheim and Bellack also argue that the process by which the Coastal Commission and the City of Los Angeles approve developments that comply with the Coastal Act (which governs how developments are built on California’s coastline) is overly They argued that it was cumbersome and time-consuming, and could end up taking months. The rebuilding process takes several years and incurs significant financial costs due to delays.
Specifically, to lower hurdles for homeowners and developers, the agency said the agency should clarify and speed up the plan-checking process, lower fees, and suspend restrictions on routes for transporting dirt and debris. people said.
Fixed asset tax
As homeowners grapple with new expenses in the wake of the wildfires, L.A. officials also announced that property taxes on fire-affected properties will be reduced until they are rebuilt or revalued at land value. asked government leaders to temporarily suspend the
“California should not profit from the losses until the homes are rebuilt,” the letter says.
City and agency also fighting price gouging
Many people have come together to help their communities during this difficult time, but unfortunately, many others have already taken advantage of this tragedy to prey on vulnerable people through price gouging. The agency reported that there is.
Rochelle Mays of Noorman & Associates told Inman, “We have laid off several customers due to price gouging.” “I don’t like it. I don’t want to be involved. Unfortunately, even in times of disaster, there are always opportunities. And there are people who are leasing their properties for $20,000 or $15,000 a month. When it comes time to lease again, they ask for $25,000 or $30,000, which is disgusting.”
Some of the price hikes are being driven by desperate evacuees who pay six months’ worth of cash upfront and offer more than the asking price of properties to rent or sell. But the more frightening price hikes come from landlords and sellers themselves.
Under the state’s price gouging rules, which went into effect on Jan. 7 after Gov. Newsom declared a state of emergency, landlords cannot charge more than 10 percent above the advertised price before the state of emergency was declared. . But agents told Inman and other news outlets that it was easy to see that rents were 20% higher than before the fire.
“On its own, organically; [prices] I think it will be 20 percent or more,” Mays said. “But it also has a dark side: a nasty price gouger looking to take advantage.”
California Attorney General Rob Bonta warned those seeking to participate in price gouging over the weekend that such actions are against the law and bad actors will be held accountable. Those found guilty of price gouging could face up to a year in prison and fines, Bonta said.
Mr. Oppenheim and Mr. Bellack’s letter also noted that the agency strives to avoid involvement with price gougers.
“We will not support landlords who seek to take advantage of this crisis by raising rents above pre-disaster market rates,” the letter reads. “We are committed to providing vacant homes on publicly accessible platforms like MLS to increase access for those affected by the crisis.”
As local residents grapple with the devastation caused by the wildfires, the Los Angeles Police Department held a press conference Monday at 2 p.m. PT to address charges against suspects of arson and looting throughout the city.
Los Angeles County Supervisor Lindsey Horvath said a homeowner’s worst nightmare came true when an individual posed as a firefighter and ransacked properties in the Pacific Palisades. “This behavior is unacceptable,” she said.
Los Angeles City Attorney Heidi Feldstein Soto also said her office targets predatory, price gouging, trespassing and fraud by bad actors “to ensure that no individual gets away with illegal or predatory behavior.” The government reassured the public that the government was doing just that.
Mr. Soto also noted that individuals who engage in price gouging can be subject to both criminal and civil charges, and such charges carry penalties of up to one year in prison and large fines. Her office has launched a price gouging task force and is developing a reception system for individuals to submit price gouging complaints.
If you would like to contact the Price Gouging Special Task Force, you can do so by email at att.pricegouging.taskforce@lacity.org or by phone at (213) 679-5035.
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