City Council Conducts First Reading of Ordinance That Exempt Eaton Fire Rebuilds From Construction Tax

The City Council on Monday conducted the first reading of an ordinance exempting homeowners rebuilding after the Eaton Fire from paying the city’s 1.5 percent construction tax.

The ordinance applies to single-family homes and condominium units destroyed or damaged in the January 7 blaze.

A “first reading” is the initial step in the process of adopting a new local law. At this stage, the proposed ordinance is introduced publicly, the council discusses its purpose and language, and no final action is taken. A second reading—typically at a later meeting—is when the council votes to formally adopt the ordinance.

While the brunt of the devastation was experienced in nearby Altadena, 185 structures in Pasadena suffered damage or were destroyed by the blaze.

“The fee and tax waivers are intended to assist homeowners who were directly impacted by the fire in rebuilding and keeping their families in the community, and therefore payment of the construction tax will be required if the property is sold to other buyers,” according to a staff report contained in Monday’s agenda.

The City Council previously approved fee waivers, reduced deposits and tax exemptions for qualifying rebuilds at its August 25 meeting.

Under the proposed law, homeowners who rebuild will remain exempt from the tax unless they sell their property to a non-family member before a final building inspection.

In those cases, payment of the construction tax will be required.

City officials said the fee and tax relief is designed to help fire survivors rebuild and remain in the community. The Planning and Community Development Department will oversee implementation.