Pacific Palisades Fire-Rebuild Updates
Introduction
Rebuilding in the Pacific Palisades after the fire continues to reveal new complexities. As the city updates its policies and homeowners navigate rebuilding options, the goal remains the same: to rebuild smarter, safer, and with clarity. This episode outlines the latest updates to the “like-for-like” regulations, tax implications, budgeting, contractor selection, and practical strategies for homeowners facing post-fire reconstruction.
1. A Lack of Centralized Information
One of the most persistent challenges for fire victims is simply finding reliable information. Homeowners have been left to piece together details from numerous sources with conflicting advice; often relying on neighbors or contractors for guidance, which can lead to misunderstandings about rules, documentation requirements, or project scope. Even city representatives can offer different interpretations depending on the day or reviewer.
The reality is that there are countless ways to build a home. Prefab housing, design-build, and the traditional architect–contractor approach are the three main routes, but each has multiple variations within it. The solution that works for one client may not be right for another. Finding the best approach for you means understanding the nuances of how different professionals operate—their strengths, limitations, and trade-offs. Early consultation with professionals familiar with the evolving codes can help you avoid costly missteps and delays.
“There are countless ways to build a home. The solution that works for one client may not be right for another.”
2. “Like-for-Like” Regulation Updates
The city’s “like-for-like” regulation was designed to simplify rebuilding, but in practice, it’s often misunderstood. Previously, it was widely defined as allowing a home to be rebuilt at up to 110% of its previous square footage in total. Now, the rules focus strictly on the maximum size of the previous footprint and height.
Within these limits, homeowners can still adjust the layout, shape, or position of the footprint as long as the structure remains within the defined footprint size and a height of the previous structure, with an additional 10% allowance.
House placement is more flexible than often assumed. The updated rules now allow the new home to shift up to 20% from its original footprint in width and depth, as long as it meets setbacks and height limits. This flexibility gives homeowners a chance to improve access, orientation, or views without triggering a full planning review. The shift provides more design flexibility.
“Many residents—and even some professionals—are still restricting their rebuilds to the old “like-for-like” rules, potentially leaving hundreds of square feet unbuilt that could otherwise be included in the project.”
“The approvals timelines for a like-for-like and new construction project in a non-coastal area are basically identical”
3. Rebuilding Without Original Plans
Many homeowners no longer have copies of their original plans; some were destroyed in the fire, others were never digitized by the city. Existing records, assessor data, and on-site measurements can be used to reconstruct the house footprint and establish baseline conditions. The City will rely on a licensed surveyor to provide the previous footprint.
In one of our projects, we are having the surveyor use Apple Maps to verify the previous home’s footprint. This allowed us to increase the total square footage of the project significantly, compared to the surveyor’s initial drawings.
4. Tax Implications of Rebuild vs. New Construction
Beyond design and permits, homeowners also face financial decisions that affect long-term outcomes. Tax consequences of a fire rebuild vary depending on how much of the previous footprint and square footage is retained. Anecdotally, we have heard from residents that taxes are structured in three ways:
Up to 100% of original square footage – Taxed at the same rate as the previous structure.
Additional 10% of square footage – Minor tax increase, but still below full new construction rates.
Beyond 110% threshold – Classified as new construction, triggering a full property reassessment and higher taxes.
Consult with qualified tax professionals before making any financial or project-related decisions.
5. Cost Per Square Foot: Why It’s Misleading
Construction cost per square foot is often used as a benchmark, but it can be highly misleading. Factors like schedule, site conditions, finishes, contractor quality, and trade sequencing all affect the true cost.
Spec home contractors often boast low construction costs, but they achieve their numbers by taking unseen shortcuts, using lower-grade materials, and or sacrificing execution. Homeowners rebuilding after a fire must weigh short-term savings against long-term durability.
The cost per square foot metric can also be misleading because different professionals will define the square footage of the house differently. Does it include the non livable areas like garages? Are balconies and outdoor kitchens included? Are landscaping, hardscaping, and landscape elements included?
Some contractors will state a cost per square foot that only includes the scope of the core and shell of the project (foundations, framing, drywall, and exterior cladding) from the interior build-outs (millwork, plumbing fixtures, hardware, tile, etc). This can create further confusion and make it sound like those contractors are cheaper.
“Two houses of the same size can be built for $500/sf or $1,200/sf. What determines the difference is the schedule, budget, design quality, contractor, and whether shortcuts were taken behind walls or under finishes.”
6. Choosing the Right Contractor
As rebuilds progress, one of the biggest challenges homeowners face is hiring the right contractor. Local contractors are often the best choice because they understand permitting, inspections, and site logistics. Additionally, they likely have established relationships with suppliers and inspectors, which can save significant time during construction.
Out-of-area contractors may offer lower bids but often lack familiarity with local processes. Misjudged inspection timelines, overlooked code nuances, or underestimated logistics can lead to delays and added costs. Experience with fire rebuilds is also crucial, as coordination with insurance, engineers, and architects can be complex. Contractors who have navigated these projects before can anticipate challenges others might miss.
Experimental fire-resistant construction methods may seem appealing, but they often introduce specialized labor, long lead times, or unfamiliar inspection requirements. Conventional methods executed by experienced teams typically deliver more predictable, reliable results.
“If you are under pressure with a tight budget, tight schedule…there’s a good argument to be made that that is not the type of situation for experimentation with alternative construction methods.”
7. Building on a Budget
Rebuilding on a tight budget requires early planning and realistic expectations. A good tip is to start by requesting Rough Order of Magnitude (ROM) estimates from several contractors. This helps homeowners understand the cost to rebuild the house “as was” with sensible upgrades and highlights how design choices, materials, and finishes affect overall cost.
Phasing nonessential elements such as landscaping, secondary interiors, or upgrades until after occupancy is a practical way to spread expenses without compromising core construction. Clear communication with contractors about priorities and scope prevents surprises and ensures the project stays on track.
8. Prefab Solutions: Promise and Caution
Prefabrication can shorten construction timelines and improve site efficiency. However, “prefab” covers a wide range of the spectrum, from fully modular homes to partial components like panels. True prefab, where most of the house is built offsite, delivers the most benefit. Hybrid systems often require significant onsite labor, which can offset time savings and create logistical challenges.
The key to success is integrating prefab from the start. Design, permitting, manufacturing, and installation must be planned as a continuous process rather than added mid-project.
“Prefab is a term that is too loosely used. If the client still has to hire a local team to do 80% of the labor, is that still considered prefab?”
Finding Your Right Path
The right path to rebuilding depends on your unique circumstances and many factors. Much of the information circulating is often incomplete or not applicable to your specific situation. Should you pursue prefab, design-build, or the traditional method with an architect and contractor? It’s essential to speak with a professional who can help you think through the many variables and possible paths forward.
We are offering free consultations and guidance for all fire-rebuild projects.
Contact info@famearchitects.com for more information.