Los Angeles City Council Approves Palisades Rebuild Subsidy

The Los Angeles City Council signed off on a $90 million subsidy program for Palisades fire victims.

On Tuesday, the city council unanimously approved the funding for costs associated with rebuilding properties in Pacific Palisades that were damaged or destroyed in the deadly January 2025 blazes, My News L.A. reported. More than 20 Palisades residents and fire survivors urged the city council to approve the aid before leaders ultimately gave it a thumbs-up.

In greenlighting the subsidies, the city council asked the city attorney’s office to prepare an ordinance to officially establish the program and a framework to execute it. Under the subsidy program, all structures, including single-family homes, duplexes, accessory dwelling units, multifamily housing, townhomes, condos and commercial buildings, would be covered if homeowners rebuild within 110 percent size of the original property footprint and use the structures for the same purposes. Property owners would be responsible for fees in excess of the 110 percent rebuild and repair limit.

The city administrative officer, Matt Szabo, and his office have been instructed by the council to recommend a funding strategy to the city council and Mayor Karen Bass, which would be incorporated into the budget for fiscal year 2026 and 2027.

The council also approved a measure introduced by Council member Monica Rodriguez that implements protections to confirm that taxpayer funds are used for rebuilding and recovery and that property owners can’t take the money and run. “My amendment is simply to ensure that we’re trying to ensure the people would be required to reimburse the city and taxpayers for the subsidy should the owner sell the property before the certificate of occupancy is issued,” Rodriguez said, per My News L.A.

The City of Los Angeles, which includes Pacific Palisades, has issued nearly 1,700 rebuild permits in the more than one year since the fires ripped through the seaside neighborhood, according to the state’s permitting tracker.

— Chris Malone Méndez