Coastal Fire Rebuild
A fire rebuild on the coast.
A fire-resistant custom home in Malibu, rebuilt after the Woolsey Fire.
On January 7, 2025, the Palisades Fire swept through Pacific Palisades and the surrounding coastal communities, destroying nearly 7,000 structures and displacing thousands of families. Nearly two years later, rebuilding is well underway but still slow, expensive, and complicated by insurance shortfalls, hillside sites, and Coastal Zone rules.
The pace has picked up, but very few families are home yet. At the 18-month mark, LADBS had issued rebuilding permits for 1,419 properties, but only 28 had certificates of occupancy. By mid-August 2026, more than 1,000 Palisades homes had started construction and 35 primary residences had been cleared for move-in, according to the independent Pali Rebuild Map.
This guide covers what Palisades homeowners need to know right now: the City of LA permit process and its fast-track options, eligible (like-for-like) projects, Coastal Zone rules, fire-hardening requirements, realistic costs, the insurance gap, and the funding and ALE deadlines coming in late 2026 and early 2027. We update it as rules and numbers change.
At Alto Builders, we're a licensed Design & Build firm (CSLB #1118841) based in Agoura Hills, building fire rebuilds across Los Angeles, including a fire-resistant custom home in Malibu after the Woolsey Fire. This guide draws on that work and on the official sources linked throughout.
What's new since our March 2026 edition: LADBS's self-certification pilot (now open to civil engineers), SBA's final loan extension and the contested federal builder self-certification rule, new LADWP undergrounding prep requirements, smoke-damage and mortgage protections signed September 15, 2026, and a November 3, 2026 ballot measure on the Measure ULA tax for fire-damaged homes.
Pacific Palisades is within the City of Los Angeles, so your rebuild permits go through LADBS (LA Department of Building and Safety) and LA City Planning, not LA County. That's a key difference from Altadena, which is unincorporated LA County with its own process (see our Altadena rebuild guide). Malibu permits its own rebuilds, and Topanga is unincorporated County, so neither follows the LADBS process.
Mayor Bass has issued a series of emergency executive orders for the fire recovery. These are the ones that matter most for a Palisades rebuild:
At the state level, EO N-4-25 suspended Coastal Act requirements for like-for-like rebuilds, EO N-9-25 extended that to new ADUs, and EO N-20-25 confirmed that local agencies, not the Coastal Commission, decide which projects qualify.
Under the LADBS Self-Certification Pilot, a California-licensed architect, and since February 2026 a licensed civil engineer, can certify that your plans meet code, so the project doesn't wait in the full LADBS plan check queue. Inspections and other departments' clearances still apply, and the certifying professional takes on real liability, so expect them to price that in. For many eligible rebuilds it's the fastest permitting path available.
Across all permit types, the average wait from application to permit was about 49 days in LADBS data analyzed by Crosstown LA, though 42% of December 2025 permits waited longer. Projects that need Coastal, Hillside, or Specific Plan review take considerably longer. Overall, LA-area governments have been issuing fire rebuild permits about three times faster than they issued permits in the five years before the fires. After the 2018 Camp Fire, by comparison, only 385 permits had been issued at the one-year mark.
Key difference from Altadena: Palisades permits go through LADBS and LA City Planning. Altadena goes through LA County Regional Planning and LA County Public Works. The executive orders, fee rules, size allowances, and timelines are different, so make sure you're following the right process for your parcel.
Under EO 1, the City separates "eligible" projects (essentially like-for-like rebuilds) from "non-eligible" projects (significant changes from the original home). Which category you fall into is the single biggest factor in your permit timeline.
An eligible project rebuilds a structure substantially damaged by the January 2025 fires, for the same use, within 110% of the original footprint and height in substantially the same location. You must obtain a building permit by January 13, 2032 and complete construction within three years of pulling it.
Eligible projects get meaningful flexibility. As Yoann Design Make puts it, "Imagine your house just puffed up by 10% in size." In practice that means:
A substantially larger home, a different use, or a major reconfiguration makes your project non-eligible. These projects still get EO 1's faster initial review, but:
| Factor | Eligible (Like-for-Like) | Non-Eligible |
|---|---|---|
| Size change allowed | Up to 10% increase in footprint & height | Any size (subject to zoning) |
| Zoning compliance | Not required (nonconforming OK) | Full current zoning compliance |
| ADUs | Allowed | Allowed (standard ADU rules apply) |
| Permit fees (pre-fire owners) | Waived (EO 7) | Waived (EO 7) |
| Coastal Zone review | Suspended (EO N-4-25) | Suspended if zoning-compliant (EO 8); otherwise may need a CDP |
| Review speed | Expedited (30-day review target) | Initial review expedited; Coastal/Hillside reviews are not |
| Permit deadline | January 13, 2032 | No special deadline |
Our recommendation: If getting home quickly is the goal, the eligible pathway combined with self-certification is the fastest route available. If you want to redesign significantly, budget for a longer timeline and bring in a team experienced with LADBS and Coastal Zone approvals before the design is locked.
Much of Pacific Palisades falls within the California Coastal Zone, where significant construction normally needs a Coastal Development Permit. That's what makes the Palisades more complicated than inland fire areas like Altadena.
Under Governor Newsom's EO N-4-25, Coastal Act requirements are suspended for rebuilds within 110% of the original footprint and height in substantially the same location. EO N-9-25 extends this to new ADUs, and under EO N-20-25 the City (not the Coastal Commission) decides whether your project qualifies, with no appeal to the Commission.
Mayor Bass's EO 8 goes further: non-like-for-like projects that comply with zoning can also bypass local Coastal Act and CEQA review. Separately, a state law signed in October 2025 (AB 462) requires local agencies to decide coastal permits for ADUs within 60 days and lets a detached ADU receive its certificate of occupancy before the main house, which can help families move back onto the lot sooner.
Palisades vs. Altadena: Altadena homeowners never deal with Coastal Zone jurisdiction. If your Palisades lot is in the Coastal Zone and you want to go beyond like-for-like, talk to a design professional with Coastal permitting experience before committing to a design direction.
Every Palisades rebuild must meet modern wildfire construction standards. Most of the burn area is mapped as a Very High Fire Hazard Severity Zone (VHFHSZ), which triggers Chapter 7A of the California Building Code. You can confirm your parcel's designation in the City's ZIMAS map.
The state suspended the building code updates that would have taken effect January 1, 2026 for fire rebuilds, so you can design to the familiar 2022 California Building Code. Owners whose homes were built to the 2019 code can also reuse previously approved plans. Rebuilds are exempt from the rooftop solar and battery mandate but must still be solar ready.
The State Board of Forestry adopted "Zone 0" rules in August 2026 limiting combustible materials within 5 feet of homes, but they need state approval before taking effect and are not in effect as of October 2026. Designing that 5-foot zone with hardscape or gravel now avoids rework later.
The upside: Fire-hardening adds roughly 5 to 10% to construction costs, but the result is a home far more resistant to the next fire, and one that's easier to insure.
Pacific Palisades is one of the most expensive construction markets in the country. Hillside lots, high-end finishes, and thousands of simultaneous rebuilds have pushed pricing up. Architects working in the area report quotes running from $650 to $1,200 per square foot.
| Category | Cost Range |
|---|---|
| Standard rebuild (builder-grade finishes) | $650–$800 / sq ft |
| High-end custom home (common in the Palisades) | $800–$1,200 / sq ft |
| Design, engineering, and site work | 15–20% of construction cost |
| City permit fees | Waived for pre-fire owners (EO 7) |
| Hillside work (soils, retaining walls, drainage) | $15,000–$30,000+ (much more for caissons) |
| Fire-hardening premium | 5–10% above base construction |
For a typical 3,000-square-foot Palisades home, construction alone commonly lands around $2 million to $2.4 million, before design, engineering, and site work. High-end custom homes run considerably higher. PaliBuilds' analysis found that with soft costs, general conditions, and project risk included, a fully loaded budget can reach about $1,065 per square foot.
The average insurance shortfall is about $1.5 million per home, according to a ClaimArchitect study reported by the LA Business Journal. It analyzed 37 Palisades claims and found that every one fell short of real rebuild costs: an average gap of $603 per square foot, a median of $1.4 million, and a range from $164,000 to $3.4 million.
In a separate study of 38 homes averaging about 2,480 square feet, PaliBuilds found carrier estimates averaged about $462 per square foot, equal to roughly $350 to $400 per square foot in hard construction cost. Real contractor budgets run far higher. For homes of 3,000 to 5,000+ square feet with premium finishes, the gap grows quickly.
Many homeowners were also underinsured or uninsured, and those on the California FAIR Plan often have coverage limits well below the cost to rebuild.
Action item: Don't accept your carrier's first estimate at face value. A public adjuster or insurance attorney can help. As the Santa Monica Daily Press reported, the gap between carrier estimates and real costs is systemic, not unique to your claim. A detailed contractor budget is also strong evidence in a claim dispute.
Several deadlines land between now and early 2027. We're builders, not attorneys or financial advisors, so confirm details with your insurer, lender, or attorney, but put these on your calendar.
California requires at least 24 months of ALE after a declared emergency, and you can request up to 12 more months if delays are outside your control, such as permits, materials, or contractor availability. Your policy's dollar limit can still run out first. Ask for the extension in writing, document every delay, and contact the California Department of Insurance if you're refused.
Under SBA's final extension (July 2026), borrowers have 24 months from their loan authorization date to draw funds.
A wildfire recovery package requires insurers to cover lead and asbestos testing and cleanup for smoke-damaged homes, keeps ALE paying until a home is safe to live in, and extends mortgage forbearance for LA fire survivors from 12 to 24 months.
LA voters will decide whether to exempt sales of Palisades Fire damaged homes by their at-fire owners from the Measure ULA transfer tax for five years after the fire. If you're weighing rebuild vs. sell, the outcome could change the math.
Federal builder self-certification: Under SBA guidance issued January 29, 2026 after Executive Order 14377, SBA borrowers whose permit applications have been pending more than 60 days can use a builder's certification to start rebuilding. California and 19 other states call the rule unlawful, and building without City permits creates real risk with lenders, insurers, and a future sale. Talk to your lender and LADBS before relying on it.
Even with fast-track permits and fee waivers, a Palisades rebuild typically takes 18 to 24 months from design to move-in, and longer for Coastal Zone or hillside projects. A Pepperdine University study found that rebuilding after California wildfires is consistently slower than people expect, and the low certificate-of-occupancy counts so far bear that out.
| Phase | Duration | Running Total |
|---|---|---|
| Debris removal & site clearance | Complete for nearly all lots | Done |
| Design & engineering | 3–6 months | 3–6 months |
| Permitting (eligible / like-for-like) | 1–3 months | 4–9 months |
| Permitting (non-eligible / Coastal Zone) | 6–12+ months | 9–18 months |
| Site prep & foundation | 2–3 months | 6–12 months (eligible) |
| Framing & systems (MEP) | 3–4 months | 9–16 months |
| Finishes & landscaping | 3–4 months | 12–20 months |
| Final inspections & certificate of occupancy | 2–4 weeks | ~18–24 months total |
Debris removal is behind us. Across both fires, 2.5 million tons of debris were removed in about nine months, and nearly all City of LA lots have final sign-off.
Design and engineering is where many homeowners underestimate the time. Even a like-for-like rebuild needs new architectural plans, structural engineering, Title 24 calculations, and often geotechnical reports on hillside lots.
Permitting depends on your path. Eligible projects using self-certification or a pre-approved standard plan move fastest. Non-eligible projects that need Coastal or Hillside review can take many months longer.
Construction typically takes 8 to 14 months depending on size, finishes, and site. Hillside work and utility coordination with LADWP add time, so start utility requests during design.
Pre-Approved Standard Plans: The City's Pre-Approved Standard Plan Pilot Program issued its first approvals in November 2025. The plans are pre-reviewed for code, zoning, and wildfire standards, and pre-fire owners pay no City permit fees to use them. Ask your builder to check site fit and foundation costs before choosing one.
SB 9 lot splits and duplexes are barred in the Palisades burn area's Very High Fire Hazard Severity Zone under Mayor Bass's EO 9 and Governor Newsom's EO N-32-25, citing evacuation and safety concerns. ADUs are still allowed. Altadena took a different path: SB 9 remains available there, while a new state law, SB 1090, pauses larger SB 1123 lot splits.
We also recommend staying connected with neighbors and groups like the PPCC, which have been instrumental in sharing information and advocating for rebuilding homeowners.
Not if you owned the property on January 7, 2025. Mayor Bass's Executive Order 7 suspends City plan check and permit fees for fire rebuilds. Buyers who purchased lots after the fire pay standard fees.
A rebuild for the same use within 110% of the original footprint and height, in substantially the same location. These eligible projects get faster reviews, fewer clearances, and Coastal and zoning relief. You must pull the permit by January 13, 2032 and finish within three years.
Very few so far. In July 2026, LADBS had issued permits for 1,419 properties but only 28 had certificates of occupancy, and an independent rebuild map counted 35 by mid-August 2026, with more than 1,000 homes under construction.
Yes, through the LADBS Self-Certification Pilot. A California-licensed architect or civil engineer can certify your plans instead of waiting for full plan check. Inspections and other departments' clearances still apply.
California requires at least 24 months of additional living expenses after a declared emergency, and up to 12 more months if delays are outside your control, such as permits, materials, or contractors. Ask your insurer for the extension in writing and document every delay.
No. SB 9 lot splits and duplexes are barred in the Palisades Very High Fire Hazard Severity Zone under Mayor Bass's Executive Order 9 and Governor Newsom's Executive Order N-32-25. ADUs are still allowed.
Quotes in the Palisades have run from about $650 to $1,200 per square foot of construction, depending on finishes and site. A typical 3,000-square-foot home often costs $2 million or more to build, before design, engineering, and site work.
Alto Builders is a full-service Design & Build firm based in Agoura Hills, with deep experience in fire rebuilds serving all of Los Angeles and Ventura County. We handle everything, from initial design and engineering through LADBS permitting, Coastal Zone navigation, and construction, so you have a single point of contact from concept to keys in hand. If you're ready to start rebuilding your Palisades home, or just want to understand your options, we're here to help.
Get a Free ConsultationA fire-resistant custom home in Malibu, rebuilt after the Woolsey Fire.
