About two months after devastating blazes in Los Angeles were contained, a state lawmaker is taking steps to protect affected residents from land grab tactics and ensure efficient rebuilding.
On Wednesday, California Senator Sasha Renée Pérez, a Democrat from Pasadena, introduced two bills in response to January’s firestorm.
Together, those blazes charred more than 40,000 acres in the Los Angeles region. And the two largest fires, the Eaton and Palisades, destroyed about 11,000 homes, totaling just shy of $30 billion in damage.
The first of those bills seeks to grant public agencies and nonprofits priority in purchasing properties for sale in cases where the owners don’t want to rebuild, Pérez said in a statement. Those groups would get the chance to negotiate a fair purchase agreement or match any future market offer and buy the property.
“To prevent displacement and protect housing, we need bold legislation that keeps properties within the community rather than in the hands of outside investors who may not prioritize local needs,” Pérez said. “Speculators are already looking to exploit vulnerable residents with low-ball offers, taking advantage of fire victims in their moment of distress.”
Working to prevent a land grab
As of Tuesday, there were roughly 60 fire-damaged lots for sale, under contract or sold in Altadena, according to Homes.com. In Pacific Palisades, there were around 100 of those properties.
Though local real estate agents have reported that the sales of some of those lots have been to locals looking to rebuild, there are still worries that developers could make a grab for the land.
“Predatory speculators now threaten to destroy the rich cultural history of these communities and displace the families and businesses that built them over generations,” Doug Smith, vice president of policy and legal strategy at Los Angeles nonprofit Inclusive Action for the City, said in a statement. “We can’t let one disaster produce another.”
The proposal comes after a January executive order from Governor Gavin Newsom that bars investors from making unsolicited undervalue offers to residents affected by the fires. That order is set to expire next month.
“I have heard first-hand from community members and victims who have received unsolicited and predatory offers from speculators offering cash far below market value — some while their homes were burning,” Newsom said at the time. “We will not allow greedy developers to rip off these working-class communities at a time when they need more support than ever before.”
Pérez’s second proposed bill would have the state enact a special community-based financing plan to speed up the rebuilding process in affected neighborhoods. By using future tax revenues to fund reconstruction and economic recovery, Pérez said, communities could rebuild more efficiently.
“Statewide action is urgently needed to support the development of housing, protect renters, and preserve affordability,” she said. “These proposals ensure that local communities affected by disasters have a stronger stake in their recovery.”