On Wednesday, January 18, 2017, the City of Los Angeles will hold a special meeting to discuss "Planning and Land Use" by the Management Committee.
For all of us in Real Estate or who have an interest, these meetings have been ongoing for the past few years. There were moratoriums put in place a few years ago during an emergency meeting that the City called upon to immediately halt permits to be issued and immediate limitations for home building provisions.
There have been special zones throughout Los Angeles that have different criteria than the rest of the County based upon City Officials deeming too much development had taken place.
There are two sides to this issue and very heated - almost like our last Presidential Race, and very difficult to persuade one side to see the other.
On a homeowners side; there are two positions. One side doesn't want to see huge homes being built next to their smaller home and dwarfing them - hence the McMansion title came to be. There are also those who may not own, but concerned about the environment impact with these huge builds and how the neighborhoods become disproportioned.
The other homeowner side is absolutely furious that they may have spent most of their lives saving to purchase land in Los Angeles and not sure what they want to alter now, however, adamantly do not want the government involved in advising what they can or can not do with their incredibly expensive property. Some may wish in the future to build on if their family expands or if an elderly relative needs to come reside - all these items which would are being halted by the City.
Then there are the Developers, they specifically purchase a property to rehab and flip for a profit. It is in their best interest to build as big as possible as the price per square foot is what makes the bottom line look good.
Now before we all go Developer bashing - which is mainly what has occurred, can we all stop for a moment and think back to the days when California's Real Estate had tanked? We all know those days, Countrywide was stationed here in Los Angeles County and giving subprime loans to anyone with a high FICO score and a pulse rate and eventually prosecuted by California's Attorney General in 2008. Many banks followed in this subprime fashion and it was a game of musical chairs awaiting the day that Real Estate stopped doubling each year until the foreclosures would then take place.
We loved the Real Estate Developers back in those years. They came in with cash, bought up old properties and either rehabbed or basically built new. They were a big boost to property values and bringing in higher comps thus making our property values rise up. They brought jobs and revenue for the City which was desperately needed.
Today, however, there is a backlash between individuals and Developers as some neighborhoods are losing their "neighborhood" look with too many huge out of place homes on small lots. On the flip side, there are some individuals who can not afford to both purchase a home or lot and then be able to rehab it. Two separate loan items here - one is to purchase the property, then to qualify for a construction loan to rehab and the time it takes. These individuals looking to buy a new home are very appreciative of the Developers.
But hold on here, the City approved those big McMansions back then when we needed the revenue. No developer could build without an approved permit being issued and going through plan check. This can be easily a 3 month minimum process for heavy remodeling. Now the same City Officials are limiting the build, which undoubtedly came from Citizen pressure.
Where we stand today is some individuals are not happy that the City is unilaterally making decisions without a vote being put to the people on one of the biggest Assets some individuals own. So whether you Agree or Disagree, what is important is to show up at the meeting or voice your opinion to your local Congressmen.
SPECIAL MEETING, PLANNING AND LAND USE MANAGEMENT COMMITTEE
Wednesday, January 18, 2017
The meeting is scheduled to begin at 3:30 p.m. in the John Ferraro Council Chamber (Room 340) of Los Angeles City Hall, 200 N Spring St, Los Angeles, CA 90012.
Negative Declaration and related California Environmental Quality Act (CEQA) findings, report from the City Attorney and draft Ordinance relative to amending Sections 12.03, 12.07, 12.07.01, 12.07.1, 12.08, 12.21, 12.23, and 12.28 of the Los Angeles Municipal Code to establish new regulations for all single-family residential zoned properties including RA, RE, RS and R1 citywide, updating the existing Baseline Mansionization Ordinance and Baseline Hillside Ordinance provisions relating to the size and bulk of new single-family residences and modifying grading provisions for single-family lots in designated Hillside areas.
http://ens.lacity.org/clk/committeeagend/clkcommitteeagend26108827_01182017.html
www.lehoamiller.com
www.90049Brentwood.com
#McMansion #HomeValue #PropertyInvestment
Compare this to South Brentwoods median price which was $2,262,500 at YTD Dec 2016 and reduced by 23% compared to YTD Dec 2015. However, the median square feet adjusted by 1,284sf. From 3,206sf in 2015 to 1,922sf in 2016 – this had to do with newer, bigger homes built in 2015.
