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

Marina del Rey’s 50th Annual Halibut Derby to Feature Weigh-Ins, Prizes, Jackpot Contests and More

May 20, 2025

May 20, 2025

Prizes will be awarded across a range of categories, including heaviest halibut, heaviest fish overall, and heaviest white seabass The...

Officials Urge Vigilance as Coyote Sightings Rise in Santa Monica

May 20, 2025

May 20, 2025

The surge in activity is believed to be tied to the Palisades Fire, which burned significant areas of the Santa...

Hollywood Man Charged in Deadly Attempted Robbery on 3rd Street Promenade

May 19, 2025

May 19, 2025

Santa Monica Police Say Planned After-Hours Sale Turned Violent Hollywood resident Karen Melikyan, 41, has been arrested and charged in...

Officials Launch Public Safety Survey Ahead of PCH Reopening, National Guard Withdrawal

May 19, 2025

May 19, 2025

City leaders plan to hold a community-wide meeting in the coming days to review survey results and outline next steps...

Pali Dolphins Baseball Concludes Season with Playoff Loss to Carson

May 19, 2025

May 19, 2025

The season featured a strong 14-4 league record, finishing second in the Western division, and a 5-1 run in their...

Elon Musk’s Tesla Renews Santa Monica Lease for 82,000-Square-Foot Service Center

May 19, 2025

May 19, 2025

Tesla Keeps California Roots with Santa Monica Service Center Renewal Despite relocating its corporate headquarters to Texas, Tesla has reaffirmed...

(Video) Venice Beach Holds Inaugural Half Marathon and 5K on Boardwalk

May 19, 2025

May 19, 2025

The Event Drew Hundreds of Participants and Included Multiple Race Categories The Event Drew Hundreds of Participants and Included Multiple...

County Requires Fire Debris Removal Permits by June 1 for Opt-Out Property Owners

May 19, 2025

May 19, 2025

Failure to comply could result in properties being declared a public nuisance Los Angeles County is requiring property owners who...

Historic ‘Parry Residence’ in Pacific Palisades Lists for $25M

May 19, 2025

May 19, 2025

It is one of the earliest homes constructed in the Huntington Palisades and was prominently featured in a 1930 issue...

10-Unit Venice Townhouse with Ocean Views Listed for $6M

May 19, 2025

May 19, 2025

Built in 1975, the 14,025-square-foot structure sits on a 7,971-square-foot corner lot  A 10-unit townhouse complex just steps from the...

Northside Pier Fest Returns to Venice Following Fire Delays

May 16, 2025

May 16, 2025

Heats will take place across both the Main and Secondary Banks of the Venice Fishing Pier The Northside Pier Fest...

Santa Monica Exhibit Showcases Artists Silenced by Pandemic

May 15, 2025

May 15, 2025

The exhibit features a wide spectrum of visual art that emerged from a period defined by social upheaval, personal introspection,...

Palisades Youth to Perform Benefit Cabaret at Harvard-Westlake

May 15, 2025

May 15, 2025

The performance will feature solo and group acts ranging from vocal and instrumental music to dance In the wake of...

Community Event in Malibu Offers Roadmap to Wildfire Recovery

May 15, 2025

May 15, 2025

Topics will include real estate development, insurance navigation, permitting, legal compliance, and financial planning Residents of Malibu and Pacific Palisades...