understanding
“LIke for Like”
Maybe you’ve heard of the magic way to speed up your rebuild process. Let’s break down what it means and how it impacts you.
*This information has been checked for accuracy and non-bias by licensed professionals, experts and representatives from National 501c3’s. Consult with a licensed professional about your specific situation.
What it is
“Like for Like” is a system the building department created to simplify rebuilding for those who want to construct something very similar (in size) to what they had before.
Folks are often confused by this because they misunderstand “Like-For-Like” as being an exemption from tax reassessment. The only way to avoid an increase in your taxes is if your home is "substantially similar" to the one that was lost, (in size, number of bedrooms and bathrooms, finishes, height, square footage, etc).
Let’s break down what it means and how it would actually affect your build.
“what are the rules?”
To qualify for Like-for-like, the size of your new home is tied to the size of your old home, and the rules differ slightly depending on where you are.
LA County:
If your home was under 2,000 SF, you can add up to 200 additional SF
If your home was over 2,000 SF, you can add up to 10% additional SF
LA City:
You can add up to 10% additional SF
“Can it look different?”
Like-for-like does not mean you have to use the same design.
You can change the layout, style, and configuration of the home as long as it’s in a similar location, similarly sized, and has a similar height or bulk. There are a number of architects offering plans at discounted rates or for free that might qualify you as Like-for-like.
What about
tax
reassessments?
Myth:
Like-for-like means your property taxes won't get reassessed.
Fact:
The really simple explanation is that unless your home was just reassessed before the fires, it’s likely your home will have new taxes applied once you rebuild; it’s just a matter of how much.
“Why would I get reassessed
even if I build Like-for-like?”
Like-for-like is a building standard, not a tax rule. It allows you to potentially get your permits approved faster, or to grandfather in setbacks that wouldn’t be allowed today, but it doesn’t have anything to do with your taxes.
“What will cause my bill to go up?”
If the rebuild increases the value of the home more than 120%, you’ll see an increase on your tax bill to reflect that value change.
An example: If the fair market value of your home was $1m the day before the fires, and it’s valued at $1.3m once you have rebuilt, taxes will be applied to the additional $300k.
An increase in size or number of bedrooms and bathrooms. Any additional square footage over what you had previously will have new taxes applied to that portion of the house.
An example: If your home was 1500 SF and you build to 1,700, the additional 200 SF will have new taxes applied.
“How is an increase in
value calculated?”
The assessor will look at the “Fair Market Value” of your property the day before the fires, and then look at the fair market value of your home at the time of reassessment. If it’s gone up by more than 20%, anything over the previous value will have new taxes applied.
An example: If the fair market value of your home was $1m the day before the fires, and it’s valued at $1.3m once you have rebuilt, taxes will be applied to the additional $300k.
“So why might my taxes increase?”
Your new home will be built to today’s codes, which require energy efficiency and resiliency improvements (plus any material upgrades you make), so unless your home was fairly new at the time of the fires, these changes will likely cause the value of your property to increase significantly. While this is great for your net worth, it may push you over the 120% value threshold for reassessment.
To qualify for tax reassessment
exemption, you must:
Not exceed 120% of your previous home’s fair market value taken from one day before the fires.
Note: This may be hard to achieve unless you can demonstrate with reasonable market research the fair market value of your home taken from the day before the fires via comparable home sales. If your home was very new at the time of the fires, it will be easier to use this method.
Build something “substantially similar”* to what you had as it applies to bedroom and bathroom count, height, style, placement on the lot, and/or setbacks.
*This is a vague term used by the tax collector’s office. At this time, no further explanation has been offered.
“how would building
Like For Like
benefit me?”
Like For Like plans can speed up your permitting process slightly, however, the difference is not significant.
If you had setbacks or zoning that would not be allowed today, you may be able to grandfather them in with a Like For Like build.
For Example: There are some lots in Altadena that are very narrow and would be unbuildable using current building codes, so this would be important to those home owners.
Note: Building outside of current setback rules may preclude you from qualifying as a resilient home and make it harder to get insurance. Experts caution against this.
Is there a way to check if my plans qualify?
Yes. To check if your rebuild qualifies as Like For Like:
• Contact the County Assessor’s Office directly, here.
• Ask for a Section 70.5 exclusion form or guidance.
• Provide plans and specs before building if you want written confirmation.
Tip
“Like for Like” does not mean you have to use the same design. There are a number of architects offering plans at discounted rates or for free that might qualify you as “Like For Like.”
FAQs
*
FAQs *
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Yes, you can completely change the interior layout.
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Yes, you can change the exterior cladding, color, etc.
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10% or 200 square feet over what the County had on file for you before the fires (see above).
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No, it can be a completely different aesthetic, but the footprint does have to be substantially similar and it does have to be in the same spot as your old house.
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Not exactly.
For LA City: Additional allowance of 10%
For LA County: 10% more square footage than what the County had on file or 200 sq ft, whichever is higher.
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1. Size
• The square footage must be comparable to the original structure.
• Cannot exceed 200 or 10% additional SF, depending on size (See above)
2. Market Value
• The replacement home’s market value must be within about ±20% of the destroyed home’s pre-loss value.
• If it’s within 120%, the full base-year value transfers
• If above that, the excess is reassessed at current value
3. Utility
• It must serve the same purpose as the original:
• Examples: rebuilding a single-family home with another single-family home qualifies; switching from residential to retail does not.
4. Function
• The basic functionality should be the same: a kitchen, bedrooms, bathrooms, living spaces, etc.
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If you want to build a bigger house than 110% of what you had pre-fire, it is considered a “Custom Build.”
The City and County have committed to putting fire survivors' rebuild permits “at the front of the line” for review, but custom-built plans take longer to pass through plan check than “like for like” plans.
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Many entities offer pre-existing plans with various degrees of customization available. Because the plans already exist, it can cost a lot less to use these as a baseline for your home design.
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These are architectural plans that the City or County has already signed off on. These can’t be changed very much, but can speed through the permit process if a quicker timeline is your highest priority.