Common Cents: Sell or rebuild in Malibu 

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Scott Dittrich

By Scott Dittrich
Opinion Columnist

Everyone — and this includes all five of our City Councilmembers, our planning commissioners, and city staff — have stressed rebuilding like for like, and as fast as possible. But the system is broken. There are 43 steps that must be met. Forty-three, unless errors are found, which can exponentially multiply this number. Each step increases cost and time to rebuild. Every delay means a Malibu family not living in their home, not frequenting our businesses, their kids not attending our schools, and an increased likelihood of leaving Malibu.

It’s estimated that 40-50% of the 737 homes destroyed in the Palisades Fire will rebuild like for like. Thirty percent to 40 percent will decide to sell. Some of these, plus some of the burned lots remaining, will become mega mansions, other lots will languish unbuilt for years. Of those who plan to sell, most will answer that they either cannot afford to rebuild or can’t face the complexity and frustration and pain of rebuilding in Malibu.  Each added step in the process reminds them of the struggles Woolsey victims have undergone and the four — or six — years of stress.

But these percentages are not set in stone. If we simplify the process and reduce cost, more of our current Malibu neighbors will rebuild and be back in their homes — in two years instead of four. The governor eliminated the need for Coastal Commission review and encouraged fire department approvals. City staff and our council have vastly sped up the planning process. But rebuilding will come to a grinding halt once it hits the building and safety departments.

“Like for like” is a misnomer for older homes. Building codes continue to change, and each and every change means added costs. No one in Malibu would argue that upgraded fire protection isn’t needed.  I’d suggest we go further in this regard, requiring anyone with a Tesla Wall to add an automated fire suppression system around the perimeter of their home and to require automatic water shutoffs. But to require radical changes to foundations that have proven themselves solid over 50 years and that add hundreds of thousands of dollars to the rebuild cost goes far beyond like for like. Geotechnical requirements as the codes are now interpreted can add 25% to the cost of rebuilding. For a 2,500-square-foot home, this means $2.5 million instead of $1,875 — that’s $625,000 extra. But the homes were not destroyed because of earthquakes, land movement, or hurricanes, but from fire. How a house that has stood for 50 years isn’t safe is not common sense, especially when a new slab will be much stronger. Several councilmembers have valid concerns that any deviation from these upgraded code requirements might create legal liability to the city. But other communities — including L.A. County unincorporated are not following Malibu’s current interpretation of the codes. Permits in other places are issued in hours or days instead of months or years. Malibu’s future hangs in the balance.

At bare minimum, we should have an outside attorney research and opine on the city’s liability should someone rebuild with a new vastly improved slab but without hundreds of thousands of dollars in caisson. Perhaps we should lobby the governor so that codes be grandfathered to levels when a home was built if staff and/or a geotechnical engineer certify the plans. The council needs to have staff and our various Malibu experts — architects and engineers — to sit down and simplify our process.

This starts with waiving permit costs for those who owned their property as of Jan. 6. It means expediting any like-for-like rebuild regardless of acquisition date (sadly many current owners will sell but if we want to encourage new owners to build like for like plus 10 and not a megamansion we should expedite all like for likes, though we don’t offer them fee waivers. But the main need is to simplify and speed up building so that current Malibu residents don’t give up. This means reducing the 43 steps now required to under 10. If we do this, the first homes can be completed by Christmas.