The L.A. County Assessor Jeff Prang continues to be a great resource to residents who were affected by the Palisades and Eaton Fires.
This editor emailed him several questions about rebuilding assessments for structures destroyed in the fires and property values. Below are the questions and Prang’s answers.
Q.What happens to my property’s assessed value when/if I rebuild my home?
A. If your home is rebuilt to “substantial equivalence,” meaning size and use, your pre-fire Prop 13 tax base will be restored.
Q. The City is allowing people to add square footage up to 110%. How will the county assessor deal with that?
A. Under the Governor’s “Major Disaster Proclamation,” LA City and County, and Pasadena will permit an expedited rebuilding permit process up to 110% of structure size. Under normal Assessor standards this additional 10% would exceed “substantial equivalence.” I am, however, sponsoring AB 1253 (Schultz) that would align the 110% building code allowance with the assessment standard of substantial equivalence.
Q. Will the assessment be based entirely on square footage of the home/garage? For example, one property had a detached garage in the rear of the home. The homeowner wants to keep the same garage footage but attach it to the front of the property. The City says that makes it an ineligible property, unless the garage square footage is absorbed in the residential property. Does the assessor care about where the square footage is located as long as it is on the property?
A. As long as the house and the garage are roughly the same square footage, we do not care about where the structures are situated on the property.
Q. Is there anything else you feel that residents who are rebuilding should know?
- I urge property owners to sign up for the Homeowner Alert to help guard against title fraud – especially while they are in this difficult time of uncertainty (click here.). It is a free service to alert property owners anytime something is recorded on their deed.
- I also urge them to set up an account with my office that will allow them to complete certain transactions online, such as updating a mailing address (click here.)
- Finally, property is assessed annually on the “Lien Date,” of January 1. Under assessment law, which differs from building codes, if a property is 25% complete on its reconstruction, the assessed value will be 25% restored.
Visit: https://assessor.lacounty.gov
Can Pacific Palisades homeowners whose homes are still standing request a reduction in property taxes based on a devaluation of our homes as a result of the wildfire? Buyers are not rushing to move into a town where 8000 structures were burned including many businesses.
Reach out to Prang’s office–they are really responsive.