California suspends some permitting rules in wake of wildfires

While wildfires rage in the Los Angeles area, California's governor has issued several executive orders aimed at expediting rebuilding in affected communities.

Noting that strict compliance with rules currently on the books would hamper residents' recovery and local loss mitigation efforts, Gov. Gavin Newsom said he would suspend permitting rules within the California Coastal Act for fire-ravaged areas. The state will also temporarily ease review requirements in the California Environmental Quality Act. Newsom signed the orders on Sunday.

"When the fires are extinguished, victims who have lost their homes and businesses must be able to rebuild quickly and without roadblocks," Newsom said in the announcement. "The executive order I signed today will help cut permitting delays, an important first step in allowing our communities to recover faster and stronger."

The California Coastal Act was introduced to regulate development and growth along the oceanfront with an aim at protecting natural resources. Meanwhile, the CEQA imposes a review process on state and local agencies in order to provide information to the public about potential environmental impact of construction projects. 

Suspension of CEQA would apply to properties redeveloped at or near their former locations and cannot exceed 110% of their previous height or footprint. 

The latest directives come after the state first declared a state of emergency on Jan. 7, the day wildfires sparked in Southern California. The initial declaration imposed an immediate prohibition against price gouging for building materials, housing and storage services, emergency supplies and repairs. 

"I've also ordered our state agencies to identify additional ways to streamline the rebuilding and recovery process," Gov. Newsom said, noting that additional updates would be issued in coming weeks. 

Specifically, California's department of housing and community development will be working in consultation with other state divisions and local governments to identify additional rules that stand in the way of rebuilding in emergency-stricken areas, delivering regular updates and suggestions for revisions during the ongoing recovery process. 

In cooperation with the state fire marshal and energy commission, the department will also assist in providing recommendations regarding any necessary changes to building standards codes that may facilitate reconstruction. 

Gov. Newsom's orders stated rebuilding efforts should include measures that will increase community resilience, harden homes and help protect against future wildfires.

Multiple fires across the Los Angeles area, which rapidly spread due to high winds, thus far encompasses 39,000 acres. The disaster also destroyed approximately 12,000 structures and left two dozen dead as of Monday morning. 

In addition to the state's updated rules, the U.S. Department of Housing and Urban Development also issued relief measures regarding loans its agencies guarantee following President Biden's major disaster declaration for Los Angeles County. The declaration automatically places a 90-day foreclosure moratorium on all liens backed by the Federal Housing Administration, including home equity conversion mortgages, for borrowers residing in the designated disaster zone. 

Similarly, government-sponsored enterprises Fannie Mae and Freddie Mac reminded homeowners and servicers of its forbearance-relief programs offered to those impacted by the California wildfires. 

"Once out of harm's way, we encourage homeowners in these affected areas to contact their mortgage servicer to learn about relief options," said Mike Reynolds, Freddie Mac single-family vice president and head of servicing, in a press release. 

Holders of mortgages guaranteed by the GSEs qualify for a year of forbearance, releasing them from monthly payment obligations without penalty, following an insurable loss from an eligible disaster. Mortgage assistance also is available for homeowners whose places of employment are located in the disaster zones. 

Foreclosure actions are also suspended for GSE borrowers while their loans are in forbearance.

Freddie Mac also noted that relief assistance may be available to affected homeowners outside designated-disaster areas if their home incurs a related insured loss that impacts their ability to make their mortgage payment.