The recovery efforts in Pacific Palisades are facing concerns from a 16-year resident who believes the market is being stifled by policy, cost, and city inaction. Jeremy Padawer, an entrepreneur in the toy industry, lost his home in the January wildfire that destroyed thousands of residences across Los Angeles.
Padawer has been tracking the pace of lot sales in his neighborhood and found a troubling trend: there’s a significant inventory buildup, with lots being listed faster than sold. He attributes this to affordability, development feasibility, and damaging city policy, particularly the ULA tax, which imposes a 4-5.5% charge on home sales over $5 million.
The tax discourages redevelopment in high-value areas like the Palisades, where high property taxes and construction costs make it unfeasible for many homeowners to rebuild. Padawer also criticizes the “dwelling tax,” which assesses property taxes proportionally based on how much of the home has been rebuilt, before it’s finished.
These policies hit hardest for fixed-income homeowners, seniors, and those who were uninsured or underinsured. If not addressed, Padawer believes lot values could drop by as much as 40% from pre-fire prices. He warns that without significant policy changes, many won’t be able to return home due to rising holding costs and red tape.
Padawer’s concerns have led him to create a nonprofit advocacy platform, pacificpalisades.com, where he publishes weekly posts on tax policy, lot sales, rebuilding timelines, and fire accountability. He seeks to provide information that will help residents make informed decisions about their future in the neighborhood they love.
Source: https://smdp.com/community/palisades-homeowner-warns-of-post-fire-rebuilding-gridlock-as-property-market-stalls