One year after LA fires, politicians' promises of permits appear paltry

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Slow recovery fuels anger one year after deadly LA wildfires

Fox News senior national correspondent William La Jeunesse reports on the challenges California residents are facing one year after the devastating wildfires in Los Angeles on ‘America Reports.’

One year after a series of the most expensive and devastating wildfires tore through California, survivors are still stuck in limbo as red tape, rising costs and stalled aid slow recovery.

California’s strict rebuilding regulations, combined with the scale of the devastation, help explain why rebuilding has barely begun.

The Eaton and Palisades fires scorched a combined 37,728 acres — an area larger than California's Disneyland, Knott’s Berry Farm and Universal Studios combined — destroying more than 16,200 buildings in their path.

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Rebuilding in California has been slow due to restrictions and rising construction costs. (Josh Edelson/AFP/Getty Images)

Of those homes and businesses lost, construction has begun on fewer than 600, leaving more than 96% still untouched.

"There are people who are certainly determined to come back and build right away and have the financial resources and the insurance coverage to do that," Jamie Mead CEO of Thomas James Homes explained to Fox News national correspondent William La Jeunesse.

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More than 16,000 buildings were damaged in the twin Eaton and Palisades fires. (David Swanson/AFP/Getty Images)

But Mead says the vast majority of the community is unable to rebuild.

"There are others who don't and many of those have begun the process of selling their home sites," he added.

A major reason is cost. For many California homeowners, insurance coverage simply isn’t enough, forcing them to juggle an old mortgage on a home destroyed by fire, years of rent in one of the nation’s most expensive housing markets and the rising costs of rebuilding.

"A lot of folks that I talk to are kind of in limbo land," Compass relator Jeff Salcido told La Jeunesse. "How much money are we getting for insurance? How much time do we have to build? What's life going to be like while we take all that on?" 

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Construction has begun on fewer than 4% of destroyed homes and businesses. (Myung J. Chun/Los Angeles Times/Getty Images)

Even when homeowners are ready to move forward, the clock is working against them.

Compass Realtor Mark Marquez says that even after permits are approved in a process that can take about two months, it can take another eight to nine months to build a move-in-ready home.

But most insurance policies cover temporary living expenses for about 18 months, a window that often closes before rebuilding is complete, especially with permitting delays.

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"All these lots that you see empty, people are not getting insurance money to rebuild," said Sue Pascoe, a Pacific Palisades resident.

On Tuesday, Democratic Gov. Gavin Newsom's office announced $107.3 million in state housing funding for communities impacted by wildfire, supporting nine projects that will create 673 new affordable rental homes across Los Angeles County. 

The projects will not replace homes destroyed by fire.

"We are rebuilding stronger, fairer communities in Los Angeles without displacing the people who call these neighborhoods home," Newsom said in a news release.

"More affordable homes across the county means survivors can stay near their schools, jobs, and support systems, and all Angelenos are better able to afford housing in these vibrant communities."

Los Angeles Mayor Karen Bass’s office did not immediately respond to requests for comment.

For many fire survivors, the choice is becoming increasingly clear: rebuild quickly or walk away.