Calls on City Council to Provide Fire-Affected Properties with Time-Limited Exemption, Announces Mayoral Executive Directive
LOS ANGELES – Mayor Karen Bass announced actions to provide new relief to Palisades Fire survivors and accelerate community recovery. She called on the City Council to adopt an ordinance that would assist in the establishment of a one-time exemption to Measure ULA for Palisade homeowners and announced that once the ordinance is adopted she would issue an executive directive to direct the Office of Finance to create the rule providing this exemption. The letter follows a meeting with Rick Caruso, founder of Steadfast LA, who proposed ideas to help address this issue. The Mayor’s plan to create a time limited exemption from the Measure ULA property transfer tax will help homeowners who need to or wish to move from the fire impacted area and speed up sales of these properties and spur rebuilding and rehabilitation of the Palisades.
Read Mayor Bass’ full letter to City Council:
October 9, 2025
Honorable Members of the City Council c/o City Clerk City Hall, Room 395 | Diana Mangioglu, Director of Finance Office of Finance City Hall, Room 101 |
Honorable City Council Members and Director Mangioglu:
Even before the devastating wind-driven Palisades Fire was fully contained in January 2025, I began using my mayoral authority to urgently accelerate the recovery and rebuilding of impacted communities. I issued a sweeping Emergency Executive Order No. 1, initiating the "Return and Rebuild" strategy to expedite permitting and rebuilding for fire-damaged structures. Utilities were restored at a record rate, and we pushed to complete the necessary debris removal process on an accelerated timeline. Pacific Palisades rebuilding permits are being approved nearly three times faster than typical single-family home projects before the wildfires, and more than 70% of single-family permit clearances are no longer required.
Construction is underway across the Palisades. To date, more than 850 rebuilding plans have been approved for more than 450 unique addresses for projects in the Palisades. Hundreds of rebuilding plans are in the process of being reviewed, and at least 230 homes are confirmed to have started construction. I have issued nine emergency executive orders and two executive directives to speed all aspects of recovery and support Palisadians’ safe return to their neighborhoods.
While each of these executive actions has addressed a key component of L.A.’s recovery, there is another issue that has reportedly impacted the recovery process in the Palisades: Measure ULA. Measure ULA provides a key funding source for affordable housing production and homelessness prevention. Since Measure ULA was adopted by the voters, hundreds of millions of dollars have been generated to fund affordable housing development and preservation. Yet, the measure as written is silent on an issue now affecting our Palisades community: how to exempt natural disaster survivors who are impacted by Measure ULA’s costs as they attempt to rebuild their families’ lives.
The successful rebuilding and revitalization of the Palisades is contingent on new homes quickly being built on vacant residential lots and on the timely sale of those lots or of those residences left standing by homeowners who want to leave the area. Many homeowners affected by the fires are long-time residents living on fixed incomes and with much of their life savings tied to the equity in their property. Some of these owners want to leave the fire zone area and rebuild their lives in other communities, giving an opportunity for a new owner to rebuild on the now vacant lot or renovate an older home still standing.
But potential buyers of these Palisades residential properties are factoring in the cost of Measure ULA to make lower than market value offers. Sellers may be unable or unwilling to accept these low offers resulting in vacant residential lots that continue to sit empty and houses not destroyed being stuck on the market. This makes it harder for homeowners, even if they need to or wish to move, and delays or potentially misses the opportunity for the recovery and rebuilding of the Palisades.
The objective of Measure ULA is to use revenue generated from the tax to increase the overall housing supply, especially affordable housing, and generate funds to address homelessness. Exempting owners of homes, condominiums and other residential housing whose ownership was affected by these devastating wildfires from Measure ULA for a one time exemption over three years will speed up sales of these properties and spur rebuilding and rehabilitation of the Palisades. This will create more housing citywide, and generate higher Measure ULA tax revenue when these rebuilt or renovated properties are subsequently sold to new homeowners because those second and subsequent sales will remain subject to Measure ULA.
Providing fire affected properties with a time limited exemption from Measure ULA can be accomplished in two steps:
For the first step, I request that the City Council adopt an ordinance giving the Director of Finance increased delegated authority to promulgate rules that grant this limited one-time exemption to Measure ULA. I request that the Council adopt such an ordinance as soon as possible. I look forward to signing it into law. After adoption of the ordinance, I will issue an executive directive instructing the Director of Finance to promulgate a temporary exemption that provides much needed relief for those Palisades residents who owned and occupied residential property in the Palisades at the time of the fire, avoids unintended loopholes, and furthers the purpose of ULA.
We are on track to lead the fastest disaster recovery in state history because that is what Angelenos deserve. I thank you for your partnership as we continue to find new opportunities to deliver on our commitments to do all that we can to get communities rebuilt.
Sincerely,
KAREN BASS
Mayor
cc: The Honorable Hydee Feldstein Soto, City Attorney
Matthew W. Szabo, City Administrative Officer
Sharon Tso, Chief Legislative Analyst