March 6, 2025 6:27 AM PT
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Should building back better mean building more affordable housing?
It took firefighters 25 days to contain the blaze that ripped through Pacific Palisades. The fight over how to rebuild the wealthy community will be a much longer battle.
The Palisades fire destroyed more than 5,500 homes — mostly single-family residences, but also 1,300 multifamily units and mobile homes.
As debris gets cleared, claims get processed and property owners start planning new structures, different visions are emerging. For some, building back better should include more housing that’s affordable. But as Times reporter Liam Dillon chronicled this week, some residents and leaders are signaling familiar opposition to new affordable housing, as others suggest making the affluent enclave more exclusive.
“Before the fire, the average home in Pacific Palisades cost $3.5 million, the median household earned $325,000 and the total number of rental units restricted as affordable housing was two,” Liam wrote in his latest Times subscriber exclusive. “Landlords expect to struggle through a morass of bureaucracy to bring back their buildings, and confusion over possible income or rent restrictions only adds to the unpredictability.”
Battle lines form, some cruder than others
One prominent figure in the rebuilding effort is billionaire developer Rick Caruso, who launched the nonprofit fire recovery foundation Steadfast LA last month.
Caruso has said he’s generally in favor of affordable housing, just not in Pacific Palisades, citing concern that “outside groups with no ties to the area” would hamper reconstruction work.
Joe Lonsdale, co-founder of data-mining company Palantir and a board member of Caruso’s new nonprofit, framed his critique against housing for low-income residents in a different way on social media, posting to X: “Sorry guys, no rebuilding your fancy houses that burned down by the ocean in LA until there’s a new crack den installed right in the middle of the neighborhood.”
Liam spoke with one local business owner who has grand plans for an apartment building where his burned out gas station now stands. Justin Kohanoff owns the station on Sunset Boulevard but told Liam he’d long hoped to build housing on the site. He envisions an eight-story building with up to 100 units, including some reserved for low-income residents, and plans to bring his proposal to the city in the coming months.
“We have time on our hands so we can deal with the city and fight with them to build what we want to build,” Kohanoff said. “We know they’re not going to give it to us on a silver platter.”
As with previous debates over affordable housing, some Palisades residents have leaned into conspiracy theories, sparking reassurances from city and state leaders that rezoning would not be a top-down decision.
Developer Steve Soboroff, who is serving as Mayor Karen Bass’ (unpaid) recovery czar, expressed support for building more apartments in Pacific Palisades, though he told Liam it’s not the priority. But efforts to block affordable housing in the neighborhood are “elitist,” he added.
“In the deeds, it used to be, ‘No Jews and No Blacks,’” Soboroff told Liam. “What are they going to put in the deeds now, ‘No Affordable Housing?’ That stuff doesn’t hold muster.”
The density dilemma
One way to make homes more affordable is to build denser housing, like condos and apartment buildings so neighbors live closer together.
“Because of its wealth and high-quality amenities, Pacific Palisades fit the description of a community prioritized for affordable housing under state and local policies, with the potential for projects to receive financial and zoning incentives,” Liam explained.
But the majority of land zoned for housing in Pacific Palisades and the rest of L.A. (and across the state) permits only single-family homes. That’s a source of ongoing friction between affordable housing advocates and residents in those low-density neighborhoods who are quick to malign efforts to change the status quo in their communities.
Public safety will almost certainly play a role in future debates, as adding more residents means adding more cars to local roads that could not handle evacuation traffic during January’s fire.
Affected renters face a tough road ahead
Affordability had been possible for hundreds in Pacific Palisades through rent-controlled apartments.
But after the fire destroyed many of those units, resistance to affordable housing and skyrocketing construction costs present major challenges for landlords and their former tenants hoping to stay in the neighborhood.
And it’s unclear how local and state laws will help or hurt renters’ chances, Liam explained.
“A Newsom executive order from last month implies that all rent-controlled housing that burned down in the Palisades must be covered by rent control if it’s rebuilt,” he wrote. “City legal officials have indicated the opposite through City Atty. Hydee Feldstein Soto’s sponsorship of new state legislation that, if signed into law, would apply rent-control rules to rebuilt apartments.”
You can read more from Liam about rebuilding and affordability in Pacific Palisades in his Times subscriber exclusive.
Today’s top stories
L.A. County sues Southern California Edison over the Eaton fire
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What else is going on
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Commentary and opinions
This morning’s must reads
Justin Baldoni’s tumultuous road to the center of a Hollywood scandal. Last year’s romantic drama “It Ends with Us” was supposed to be the culmination of Baldoni’s transformation into a multihyphenate force. But despite grossing over $350 million worldwide after its August release, the success of “It Ends With Us” has been overshadowed by a bitter, escalating feud between Baldoni and his co-star Blake Lively.
Other must reads
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For your downtime
Going out
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A question for you: What’s your favorite local restaurant?
Joanne Koehler writes: “Tara’s Himalayan Cuisine in Culver City! Just delicious, the people that work there are so sweet, the ambiance is cute, and the food is incredible - we take out-of-town visitors there, and have friends on the east side who will make the trek for momos and yak chili. I never knew spinach naan was capable of tasting so good before Tara’s. Love them and hope they are in business forever.”
Email us at [email protected], and your response might appear in the newsletter this week.
And finally ... from our archives
On March 6, 1972, legendary basketball player Shaquille O’Neal was born. When the Lakers signed O’Neal away from the Orlando Magic in 1996, former Times reporter Mark Heisler wrote about how the team “hit the shaqpot” by giving him a $120-million, seven-year contract that tilted the balance of power in the NBA.
Have a great day, from the Essential California team
Ryan Fonseca, reporter Defne Karabatur, fellow Andrew Campa, Sunday reporter Kevinisha Walker, multiplatform editor Hunter Clauss, multiplatform editor Christian Orozco, assistant editor Stephanie Chavez, deputy metro editor Karim Doumar, head of newsletters
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