City Council

(23)\n25-0006-S57\nEXEMPTION, AD HOC COMMITTEE FOR LA RECOVERY REPORT,\nBUDGET AND FINANCE COMMITTEE REPORT and ORDINANCE\nFIRST CONSIDERATION relative to adding Section 98.0419.1 to the\nLos Angeles Municipal Code (LAMC) to waive fees imposed in\nconnection with permits to repair or rebuild buildings or structures\ndamaged or destroyed by the January 2025 Wildfires; and feasibility of\nwaiving plan check and permit fees associated with reconstruction of\nprivate property damaged in the January 2025 Wildfires.\nA. AD HOC COMMITTEE FOR LA RECOVERY REPORT\nRecommendations for Council action, SUBJECT TO THE APPROVAL\nOF THE MAYOR:\n1. DETERMINE, based on the whole of the administrative record,\nthat the adoption of the accompanying ORDINANCE dated\nJune 20, 2025, does not constitute a project under the\nCalifornia Environmental Quality Act (CEQA) pursuant to State\nCEQA Guidelines Section 15378(b), in that the action relates\nmerely to administrative and organizational matters and the\nsetting of policy and procedures that do not result in any direct\nor indirect change to the physical environment.\n2. PRESENT and ADOPT the accompanying ORDINANCE dated\nJune 20, 2025, relative to adding Section 98.0419.1 to the\nLAMC to waive fees imposed in connection with permits to\nrepair or rebuild buildings or structures damaged or destroyed\nby the Wildfires of January 2025.\n3. APPROVE the following Recommendations contained in the\nCity Administrative Officer (CAO) report dated May 7, 2025 as\nRecommendation No. 1.b-e, attached to Council file No. 25-\n0006-S57\na. FIND that the waiving of permit and plan check fees for\nrebuilding properties represents a clear public benefit\ninasmuch as the waivers would remove barriers to\nreconstruction and benefit the economy of the City.\nb. REQUEST the Controller to establish a new account\nWildfire Emergency Permit Fee Waivers in the General\nCity Purposes (GCP) and appropriate $10 million from a\ntemporary revolving loan from the Los Angeles\nDepartment of Building and Safety’s (LADBS) Building\nPermit Enterprise Fund (Enterprise Fund) to be repaid,\nwith interest, by General Fund dollars.\nc. INSTRUCT the LADBS to establish fee waiver\nprocedures, including the process for obtaining\nreimbursements of waived fees from GCP to ensure full\ncost recovery for the Enterprise Fund.\nd. INSTRUCT the CAO to identify General Fund dollars to\nrepay the Enterprise Fund, for any and all fees waived in\nconnection with the January 2025 Wildfires, with interest\ncalculated at the City Daily Interest Pool Rate.\n4. INSTRUCT the CAO to report in 30 days on:\na. An updated analysis on the financial impacts that\nassumes all rebuilds are included in the waiver program\nas well as accounts for potential insurance or other\nfunding sources.\nb. The estimated number of homes/builders currently in the\nprocess that were uninsured or underinsured. Within this\nsame group, the number of households that fall at or\nbelow moderate Area Median Income.\nc. An analysis of potential funding recommendations and\nrepayment of the Enterprise Fund loan.\n5. INSTRUCT the LADBS to report every six months with the\nnumber of households that have been granted fee waivers.\n6. REQUEST the City Attorney to report with an analysis on the\nability to make subrogation claims against insurance\ncompanies.\nB. BUDGET AND FINANCE COMMITTEE REPORT\nRecommendations for Council action, SUBJECT TO THE APPROVAL\nOF THE MAYOR:\n1. APPROVE the CAO report dated October 2, 2025, attached to\nCouncil file No. 25-0006-S57.\n2. REQUEST the City Attorney to revise the draft Ordinance dated\nJune 20, 2025 to align with the Mayor’s revised Executive Order\ndated April 25, 2025, to waive all building permit fees\nassociated with repair or reconstruction of single family\nstructures and duplexes, damaged or destroyed up to 110\npercent of the original structure as a result of the Wildfires of\nJanuary 2025.\n3. APPROVE the following recommendations contained in the\nCAO report dated May 7, 2025 as Recommendation No. 1.b-e,\nattached to Council file No. 25-0006-S57:\na. Find that the waiving of permit and plan check fees for\nrebuilding properties represents a clear public benefit\ninasmuch as the waivers would remove barriers to\nreconstruction and benefit the economy of the City.\nb. Request the Controller to establish a new account Wildfire\nEmergency Permit Fee Waivers in the General City\nPurposes (GCP) and appropriate $10 million from a\ntemporary revolving loan from the Los Angeles\nDepartment of Building and Safety’s (LADBS) Building\nPermit Enterprise Fund (Enterprise Fund) to be repaid,\nwith interest, by General Fund dollars.\nc. Instruct the LADBS to establish fee waiver procedures,\nincluding the process for obtaining reimbursements of\nwaived fees from GCP to ensure full cost recovery for the\nEnterprise Fund.\nd. Instruct the CAO to identify General Fund dollars to repay\nthe Enterprise Fund, for any and all fees waived in\nconnection with the January 2025 Wildfires, with interest\ncalculated at the City Daily Interest Pool Rate.\n4. INSTRUCT the CAO to report on the following:\na. A breakdown of the cost estimate, including the specific\nfees waived, not waived and the estimated amount for\neach.\nb. The payment structures and how that could be limited or\npredictable on an annual basis.\nc. Adding a provision in the report on whether this fee waiver\ncould be time limited to four or five years.\nFiscal Impact Statement: The CAO reports that should the City waive\nplan check and permit fees related to the repairs and rebuilding of\nstructures that were damaged or destroyed during the January 2025\nWildfires, based on the current daft ordinance, the General Fund\nimpact could be as high as $278.35 million, not including the costs of\nborrowing.\nFinancial Policies Statement: The CAO reports that should the City\nwaive plan check and permit fees related to the repairs and rebuilding\nof structures that were damaged or destroyed during the January\n2025 Wildfires, based on the current daft ordinance, the General Fund\nimpact could be as high as $278.35 million, not including the costs of\nborrowing.