Sometimes people wonder why rent is so high in Los Angeles.
Here’s a perfect example. We’re adding four units to a duplex we bought in Highland Park.
Because LA has decided to go down the path of “low impact development”, this is what we’re confronted with (again, on a six unit project!):
“First they have to come back with corrections. They will probably request a modification from the grading department for the use of pumps. Grading department mechanical plan check. Assuming there’s no delay there, once we do the corrections we have to go back to Sanitation at which point they’ll generate a covenant. Once the covenant is created we have to get with you to sign and notarize the covenant. Once it’s notarized we have to take it to the county recorder’s office. After they give us the purple copy of the receipt we take the whole thing back to sanitation. After sanitation clears it, we have to go to the bureau of engineering to clear the tie in to the public street ( they won’t look at until sanitation clears).”
This is insanity… there’s no way on earth adding four units to an existing building in a densely populated area should require this level of insanity.
And, because it does, fewer units are built than would otherwise be the case. Less supply at a given demand level equals higher prices.