Rebuilding LA – The Easing of State Environmental Requirements, Developer Impact Fee Reminders, and Contractor’s State Licensing Board Recommendations

01.16.2025

On January 7, 2025, Governor Newsom declared a State of Emergency in Los Angeles and Ventura Counties because of fire and windstorm conditions that caused the Palisades, Eaton, Hurst, Lidia, Sunset, and Woodley Fires. Thousands of acres have burned and are still burning in what first estimates have determined is the most destructive fire in California history.

Building a business, home or school campus is not an easy task and there are a significant number of hurdles owners, developers and construction contractors of property must jump over when building a new business, home or facility under State, County, City and/or fire authority. To speed up the State of California process, Governor Gavin Newsom passed Executive Order N-4-25 on January 12, 2025.

The Executive Order suspends the California Environmental Quality Act (CEQA) and regulations adopted by it and any requirement to obtain a permit under the California Coastal Act. This suspension applies to project(s) to repair, restore, demolish, or replace property or facilities substantially damaged or destroyed as a result of this emergency. In addition, the properties and facilities must be in substantially the same location as, and must not exceed 110% of the footprint and height of, the properties and facilities that were legally established and existed immediately before this emergency.

The Executive Order also requested numerous analysis and reports to identify other potential roadblocks to rebuilding to further address and aid in recovery efforts.

The Department of Housing and Community Development (HCD), the Office of Land Use and Climate Innovation, the Office of Emergency Services, and the Department of General Services (DGS) shall provide a report identifying other state permitting requirements that may unduly impede efforts to rebuild properties or facilities destroyed as a result of this emergency that should be considered for suspension within 30 days. If appropriate, this report must be updated every 60 days, to identify any additional permitting requirements that are posing barriers to rebuilding and that should be considered for suspension.
HCD, in consultation with DGS, the Office of the State Fire Marshal, and the California Energy Commission, shall review and provide a report recommending any provision of the Building Standards Code, Title 24 of the California Code of Regulations, that should be suspended for repair or replacement projects described above within 60 days in order to facilitate rapid, safe, and cost-effective rebuilding and recovery.
HCD shall coordinate with local governments to identify and recommend procedures, including exploring the use of pre-approved plans and waivers of certain permitting requirements, to establish rapid permitting and approval processes to expedite the reconstruction or replacement of residential properties destroyed or damaged by fire. The goal of this expediting is to provide all necessary permits and approvals within 30 days. HCD shall, provide a report within 60 days identifying recommended updates to local government procedures that achieve these goals. If appropriate, this report shall also be updated every 60 days to identify any additional permitting and approval requirements that are barriers to recovery and rebuilding efforts that should be removed.
The Governor’s Administration will collaborate with the Legislature to identify and propose statutory amendments that durably address barriers impeding rapid rebuilding efforts in the areas affected by this emergency. This will include potential legislation to incentivize the incorporation of additional fire hardening measures into rebuilding efforts and enhancements of fire mitigation and fire response capacity within rebuilt areas, and potential legislation based on any suspensions of statutes and regulations in the Executive Order, or any subsequent order, or reports required under the above Paragraphs 1 through 3.

In addition to the Executive Order, Developer Impact Fees may not be charged for the reconstruction of any residential, commercial, or industrial structure that is damaged or destroyed because of a disaster, which includes a fire, landslide, mudslide or other unforeseen event that produces material damage or loss. Education Code Section 17626(b)(2) defines reconstruction as the construction of property that replaces and is equivalent in kind to, the damages or destroyed property. Therefore, under current law, a school district could collect Developer Impact Fees against a newly-constructed residential or commercial/industrial structure with square footage in excess of the original structured that was destroyed by disaster.

Finally, during difficult times certain people look to take advantage of those trying to rebuild. As a result, the Executive Order extends the price gouging protection in times of emergency of Penal Code section 396, subdivisions (b) and (c). We remind everyone that the California Contractors State License Board (CSLB) has resources for consumers to locate Find My Licensed Contractor – Search by Location - CSLB, hire Hire a Licensed Contractor - CSLB (ca.gov) and check the license of contractors Check A License - CSLB (ca.gov). The CSLB also has 10 Tips when hiring a contractor that include recommendations such as obtaining at least three bids, obtaining references from contractors past work, avoid paying more than 10% down or $1,000, and to avoid making the final payment until you are satisfied with the job. 10 Tips (ca.gov).

The devastation and destruction from the Palisades, Eaton, Hurst, Lidia, Sunset and Woodley Fires is of a magnitude that was unimaginable. Our hearts go out to those affected by and fighting these unprecedented wildfires. The process can be daunting especially with the sheer volume of forthcoming construction. We will continue highlighting the State and local government efforts to ease and speed this process.