{"id":63044,"date":"2025-02-01T22:31:02","date_gmt":"2025-02-01T22:31:02","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/legal\/rebuilding-after-the-2025-southern-california-fires-california-construction-law-blog\/"},"modified":"2025-02-01T22:31:02","modified_gmt":"2025-02-01T22:31:02","slug":"rebuilding-after-the-2025-southern-california-fires-california-construction-law-blog","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=63044","title":{"rendered":"Rebuilding After the 2025 Southern California Fires | California Construction Law Blog"},"content":{"rendered":"


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\n\t\t\t\t\t\t\tBy \t\t\t\tGarret Murai<\/a><\/span>, \t\t\t\t\t\t\t\t\t\t\t\t\t\t\t

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The 2025 Southern California wildfires \u2013 the Palisades Fire (January 7, 2025), Eaton Fire (January 7, 2025), Hughes Fire (January 22, 2025) and Border 2 Fire (January 23, 2025) \u2013 rank as among the worst in California history with nearly 58,000 acres burned, more than 16,000 structures destroyed or damaged, more than 200,000 people forced to evacuate and at least 29 people killed.<\/p>\n

With the fires nearly contained, thoughts of rebuilding have begun. Estimates are that the damage caused by the fires exceed $250 billion and rebuilding efforts will take several years and up to a decade or longer in the most devastated areas.<\/p>\n

To aid the rebuilding effort, Governor Newsom issued several executive orders including Executive Order N-2-25<\/a> to expedite removal and cleanup of debris, Executive Order N-4-25<\/a> suspending the California Environmental Quality Act and the California Coastal Act in areas impacted by the fires, and Executive Order N-5-25<\/a> to expedite removal of hazardous materials. In addition, Los Angeles Mayor Karen Bass issued Emergency Executive Order No. 1<\/a> to establish programs and task forces to coordinate debris removal and watershed hazard mitigation and to streamline the approval process for reconstruction of properties damaged by the fires.<\/p>\n

Contractors involved in the rebuilding efforts should be aware of the following:<\/p>\n

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  1. Use of Home Improvement Contracts:<\/strong> Contractors involved in rebuilding residential properties, \u201cregardless of the number of residence or dwelling units contained in the building\u201d (Bus. & Prof. Code \u00a77159), are required to use statutory home improvement contract complying with Business and Professions Code section 7159. This includes driveways, swimming pools, spas and hot tubs, terraces, patios, awnings, storm windows, solar energy systems, landscaping, fences, porches, garages, fallout shelters, basements, and other improvements. Bus. & Prof. Code \u00a77151. Note: <\/strong>Although not typically the case, use of a statutory home improvement contract is required even if a residential building was completely burned down. This is because Business and Professions Code section 7151 defines a \u201chome improvement\u201d requiring a statutory home improvement contract as including \u201creconstruction, restoration, or rebuilding of a residential property that is damaged or destroyed by a natural disaster for which a state of emergency is proclaimed by the Governor pursuant to Section 7625 of the Government Code, or for which an emergency or major disaster is declared by the President of the United States,\u201d both of which have occurred.<\/li>\n
  2. Home Improvement Contract: Seven-Day Right to Cancel:\u00a0<\/strong>Because the Southern California fires have been declared a state of emergency, statutory home improvement contracts are required to include a \u201cSeven-Day Right to Cancel\u201d notice as opposed to the typical \u201cThree-Day Right to Cancel\u201d notice or the \u201cFive-Day Right to Cancel\u201d notice for residential owners who are senior citizens.<\/li>\n
  3. Price Gouging Protections: Building Materials: <\/strong>Penal Code section 396(b) makes it illegal for contractors to charge for building materials more than 10% over the price charged immediately prior to a proclamation or declaration of emergency. This prohibition on price gouging is effective for a period of 30 days<\/strong><\/span> following the proclamation or declaration. Governor Newsom proclaimed a state of emergency<\/a> on January 7, 2025 and former President Biden issued a major disaster declaration<\/a> on January 8, 2025. Executive Order N-4-25 increases the period from 30 days to January 7, 2026<\/span><\/strong>.<\/li>\n
  4. Price Gouging Protections: Cleanup, Repair or Reconstruction Services: <\/strong>Penal Code section 396(c) makes it illegal for contractors to charge for cleanup, repair, or reconstruction services more than 10% over the price charged immediately prior to a proclamation or declaration of emergency. This prohibition on price gouging is effective for a period of 180 days<\/span><\/strong> following the proclamation or declaration.\u00a0Executive Order N-4-25 increases the period from 180 days to January 7, 2026<\/span><\/strong>.<\/li>\n
  5. Ban on Removal of Fire Debris:<\/strong> The Los Angeles County Health Officer has issued an order prohibiting the cleanup or removal of fire debris<\/a> unless a hazardous materials inspection is completed by the U.S. Environmental Protection Agency, the California Department of Toxic Substances Control, the Los Angeles County Fire Department\u2019s Unified Program Agency, or other participating local government Certified Unified Program Agency.<\/li>\n<\/ol>\n

    Our thoughts go out to those impacted by the fires.<\/p>\n

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