Ben Belack and Jason Oppenheim Lead Real Estate Push for Wildfire Recovery Reforms

California Governor Gavin Newsom has signed an executive order aimed at expediting the real estate rebuilding process for wildfire victims in affected areas such as the Pacific Palisades and Altadena. The order temporarily suspends requirements under the California Environmental Quality Act (CEQA) and the California Coastal Act, which are often considered barriers to development. Newsom has emphasized the urgency of rebuilding, telling NBC, "Delay is denial for people: lives, traditions, places torn apart, torn asunder.”

The executive order mandates the state housing department to collaborate with local governments to implement new permitting rules, aiming for all approvals to be completed within 30 days. This move is expected to save homeowners years of bureaucratic delays. However, local permitting processes remain a challenge that could hinder the speed of rebuilding efforts.

Industry Leaders Call for Greater Action

Prominent real estate figures, including Ben Belack (The Agency) and Jason Oppenheim (The Oppenheim Group), have led the charge in urging Newsom and Los Angeles Mayor Karen Bass to adopt additional measures.

They spearheaded a letter signed by over 45 top agents and brokers from firms such as The Oppenheim Group, The Agency, Compass, and Christie’s International Real Estate. The letter highlights the industry's perspective on the housing crisis caused by the wildfires, emphasizing the urgent need for regulatory reform to facilitate rebuilding efforts. “From the front lines, we have a unique perspective of the challenges that lie ahead in navigating the aftermath of this disaster,” the group wrote.

Proposed Solutions from Industry Experts

The letter outlined several recommendations to aid recovery efforts:

• Increasing California Fair Plan Insurance coverage from $3 million to $6 million.
• Waiving or reducing fees to expedite processes with the Coastal Commission and Los Angeles city planners.
• Halting property taxes on impacted properties.
• Exempting land sales in affected areas from the city’s Measure ULA transfer tax, both for sellers and subsequent buyers, for up to five years.

Belack and Oppenheim underscored the emotional and financial strain faced by long-time homeowners, many of whom may choose to leave the region rather than navigate the lengthy rebuilding process. “For those who stay, they need control over how their properties are rebuilt,” Belack stated, highlighting the importance of flexibility in building codes.

Los Angeles' Commitment to Rebuilding

Mayor Karen Bass, as said during a press conference, has echoed the urgency of clearing bureaucratic hurdles, pledging to “clear the red tape” and accelerate permitting. Similarly, Los Angeles County Board of Supervisors Chair Kathryn Barger commended the governor’s swift action, acknowledging the need for streamlined processes to rebuild communities.

Broader Challenges and Criticism

While Newsom’s executive order has been widely praised, it has also faced criticism. Some GOP members argue that the governor’s actions are insufficient, pointing to his administration’s track record on wildfire prevention. Environmentalists noted that existing provisions in the Coastal Act already provide rebuild exemptions, raising questions about the necessity of the order.

At the same time, the real estate industry faces the challenge of addressing the rising demand for housing amidst a limited supply. Belack and Oppenheim’s call to action underscores the pressing need for collaboration between government and industry leaders to ensure that affected communities can recover swiftly and sustainably.

Looking Ahead

Newsom has likened the recovery effort to a California version of the Marshall Plan, emphasizing inclusivity and the need for a comprehensive approach. With the support of local leaders, industry experts, and advocacy from figures like Belack and Oppenheim, California aims to rebuild not only homes but also the communities devastated by the wildfires.