Palisades Residents Divided Over Affordable Housing Project: REPORT

A contention point is a developer’s plan to turn his destroyed gas station into an eight-story apartment building

As Pacific Palisades rebuilds from the devastating January wildfires, a proposed affordable housing project has sparked sharp divisions in one of Los Angeles’ wealthiest neighborhoods.

The Palisades fire, one of three major blazes to tear through California earlier this year, burned more than 23,000 acres, destroyed nearly 7,000 structures, and killed 12 people, according to The Los Angeles Times. Among the losses were 770 rent-controlled apartments, a rare source of affordability in an area where the median home price was $3.7 million before the fires.

A major point of contention is developer Justin Kohanoff’s plan to turn his destroyed Shell gas station into an eight-story, 100-unit apartment building, which would include units for low-income residents. Kohanoff told the Los Angeles Times he had always planned to redevelop the site but fast-tracked the project following the fire. “It’s gonna be beautiful. I can’t wait until it breaks ground,” he said.

The proposal, however, has been met with resistance from some affluent residents who fear increased density and a potential decline in property values. Some have expressed outrage that affordable housing could take priority over rebuilding single-family homes. 

As reported by the Daily Mail, billionaire developer Rick Caruso, founder of the wildfire recovery nonprofit Steadfast LA, argued that outside interests were using the disaster as a pretext to reshape the Palisades.

Social media has also fueled conspiracy theories, with some falsely claiming Gov. Gavin Newsom is using the fires to rezone the area for apartments. Newsom’s office has denied such claims, stating the governor is focused on recovery efforts, including requesting nearly $40 billion in federal aid.

Meanwhile, former tenants of the destroyed rent-controlled units face uncertainty. 

“It’s a myth that renters were more nomadic,” former resident Guy Horton told the Times. “Once you get a cheap apartment, you hold onto it for dear life.”

Related Posts

New Beginnings in Brentwood: Dr. Marian Oppenheimer Opens Private Psychology Practice at wellpeople

July 30, 2025

July 30, 2025

For more than 30 years, Dr. Marian Oppenheimer has dedicated herself to one clear purpose: helping people heal, grow, and...

City Council Removes DTSM Board Members Amid Transparency and Governance Concerns

July 30, 2025

July 30, 2025

The council’s decision follows tensions between DTSM and the city, including disputes over parking rate increases and maintenance agreements The...

Organization Sues Coastal Commission Over Ballona Wetlands Gas Project

July 30, 2025

July 30, 2025

The lawsuit claims the commission engaged in “piecemealing” by treating a well abandonment as a standalone project, despite its connection...

Officials Push to Halt Lot-Split Housing in Fire-Prone Palisades

July 29, 2025

July 29, 2025

Pali leaders warn that SB 9 — a law that allows duplexes and lot splits on single-family parcels — is...

Wildfire Price Gouging Protections Extended for Displaced Residents

July 29, 2025

July 29, 2025

These provisions limit rent increases and hotel rate hikes during a declared emergency and prohibit landlords from evicting tenants The...

Wallis Annenberg, Visionary Philanthropist and Civic Leader, Dies at 86

July 29, 2025

July 29, 2025

Philanthropist Expanded Foundation’s Reach From Arts to Conservation Wallis Annenberg, a prominent philanthropist and longtime leader of the Annenberg Foundation, died...

Mysterious Dog Deaths Plague Venice Canal Community

July 29, 2025

July 29, 2025

Over the past 10 days, five healthy neighborhood dogs have died unexpectedly, with one currently in the ICU The Venice...

Lane Closures Continue on Pacific Coast Highway for Recovery, Utility Work

July 28, 2025

July 28, 2025

Caltrans is urging drivers to slow down and use caution in the active work zones Single-lane closures will remain in...

Homecare Company Celebrates 14 years of Compassion While Planting New Roots After January Fire

July 28, 2025

July 28, 2025

Luxe Homecare, a leading provider of compassionate and reliable in-home care services for seniors has recently announced the opening of...

County Fund Provides $250K for Malibu & Topanga Businesses Hurt by Wildfire Road Closures

July 28, 2025

July 28, 2025

The program offers grants ranging from $10,000 to $20,000 for eligible businesses located in ZIP codes 90265 and 90290 In...

Yacht Crashes Into Seawall at Marina del Rey’s Fisherman’s Village

July 28, 2025

July 28, 2025

Witnesses at nearby restaurants watched as the mid-size yacht collided A yacht crashed into a seawall at Fisherman’s Village in...

More Than $50 Billion in Damage: What January’s Wildfire Cost the City of Los Angeles

July 28, 2025

July 28, 2025

Nearly 11,000 Properties, Many in Pacific Palisades, Affected; True Losses Likely Higher Nearly $52 billion in residential real estate across...

Council to Weigh Next Steps in Justice Case on Land Seized from Black Entrepreneur

July 28, 2025

July 28, 2025

The Ebony Beach Club case has become a focal point of Santa Monica’s growing reparative justice efforts The Santa Monica...

Malibu Teen to Paddle 21 Miles for Ocean Cleanup Following Pali Fire

July 27, 2025

July 27, 2025

His 21-mile prone paddle will trace the coastline from Malibu through Palisades A Malibu high school student and avid surfer...

(Video) A Plus Tree: A Steward of Urban Forest Management Across Los Angeles

July 27, 2025

July 27, 2025

For More Information, Go to Aplustree.com A Plus Tree: A Steward of Urban Forest Management Across Los Angeles For More...