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.”

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